Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 56

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 56
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 the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in: (1) mainland China
of the People’s Republic of China because of a position taken by one or more authorities in mainland China; and (2) Hong Kong, a
Special Administrative Region and dependency of the PRC, because of a position taken by one or more authorities in Hong Kong. In addition,
the Determination Report identified the specific registered public accounting firms subject to these determinations which included our
auditor who appears as part of the report and is listed under its Appendix B: Registered Public Accounting Firms Subject to the Hong Kong
Determination.

On December 15, 2022, the PCAOB
announced that it has secured complete access to inspect and investigate registered public accounting firms headquartered in mainland
China and Hong Kong and voted to vacate the previous 2021 Determination Report to the contrary.

The HFCAA prohibits foreign companies
from listing their securities on U. S. exchanges if the company’s auditor has been unavailable for PCAOB inspection or investigation
for three consecutive years and, as a result, an exchange may determine to delist our Ordinary Shares. In June 2021, the Senate passed
the AHFCAA which, if signed into law, would reduce the time period for the delisting of foreign companies under the HFCAA to two consecutive
years instead of three years. In the event that the HFCAA is amended to prohibit an issuer’s securities from trading on any U. S.
stock exchange and our auditor is not subject to PCAOB inspections for two consecutive years instead of three, it will reduce the time
before our Ordinary Shares may be prohibited from trading or delisted from an exchange.

As a result of this scrutiny,
criticism and negative publicity, the publicly traded stock of many U. S. listed Chinese companies sharply decreased in value and, in some
cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and
are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide scrutiny, criticism
and negative publicity will have on us, our offering, business, and our Ordinary Share price. If we become the subject of any unfavorable
allegations, whether such allegations are proven to be true or untrue, we will have to expend significant resources to investigate such
allegations and/or defend our company. This situation will be costly and time consuming and distract our management from furthering our
growth