Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 49

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 49
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 unrelated to our performance, which could result in substantial losses to investors.

Our Ordinary Shares may be subject
to rapid and substantial price volatility and their trading price could fluctuate widely due to factors beyond our control. We have a
relatively small public float due to the relatively small size of our IPO and the concentrated ownership of our Ordinary Shares among
our executive officers and directors. As a result of our small public float, our Ordinary Shares may be less liquid and have greater stock
price volatility than the shares of companies with broader public ownership. This may also happen because of the broad market and industry
factors, like the performance and fluctuation of the market prices of other companies with business operations located mainly in the PRC
or Hong Kong that may have listed their securities in the United States. In addition to market and industry factors, the price and trading
volume for our Ordinary Shares may be highly volatile for factors specific to our Operating Subsidiaries’ operations, including
the following:

  fluctuations in our Operating Subsidiaries’ revenues, earnings, and cash flow;                                                        
  changes in financial estimates by securities analysts;                                                                                
  additions or departures of key personnel;                                                                                             
  release of lock-up or other transfer restrictions on our outstanding equity securities or sales of additional equity securities; and  
  potential litigation or regulatory investigations.                                                                                    

Any of these factors may result
in significant and sudden changes in the volume and price at which our shares will trade.

In addition, the stock price of
a number of companies involved in initial public offerings, particularly among companies with relatively smaller public floats, has experienced
extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of these companies.
Such rapid and substantial price volatility, including any stock run-up, may be unrelated to our actual or expected operating performance
and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our stock.
This volatility may prevent an investor from being able to sell their securities at or above the price paid for the securities

Furthermore, in the past, shareholders
of public companies have often brought securities class action suits against those companies following periods of instability in the market
price of their securities. If we were involved in a class action suit, it could divert a significant amount of our management’s
attention and other resources from our business and operations and require us to incur significant expenses to defend the suit, which
could harm our results of operations. Any such class action suit, whether