Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 7

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 7
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 Such uncertainties,
including the inability of our Operating Subsidiaries to enforce their contracts, could affect our business and operation. In addition,
confidentiality protections in China may not be as effective as in the United States or other countries. Accordingly, we cannot predict
the effect of future developments in the PRC legal system, particularly with regard to our business, including the promulgation of new
laws. This may include changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by
national laws. These uncertainties could limit the availability of law enforcement.

The PRC government may exercise significant
oversight and discretion over the conduct of our Operating Subsidiaries’ business and may intervene in or influence their operations
at any time, which could result in a material change in their operations and/or the value of our Ordinary Shares. Changes in the policies,
regulations, rules and enforcement of laws of the Chinese government may also be implemented quickly with little advance notice. Therefore,
our assertions and beliefs concerning the risk imposed by the PRC legal and regulatory system cannot be certain.

Our Company is a holding company,
and we conduct our operations through our Operating Subsidiaries in Hong Kong and the PRC. The PRC government may choose to exercise significant
oversight and discretion, and the regulations to which our Operating Subsidiaries are subject may change rapidly and with little notice
to them or our shareholders. As a result, the application, interpretation and enforcement of new and existing laws and regulations in
China are often uncertain. In addition, these laws and regulations may be interpreted and applied inconsistently by different agencies
or authorities, and inconsistently with our Operating Subsidiaries’ current policies and practices. Compliance with new laws, regulations
and other government directives in China may also be costly, and such compliance or any associated inquiries or investigations or any
other government actions may:

  delay or impede our Operating Subsidiaries’ development;                                                                                                                                              
  result in negative publicity or increase our Operating Subsidiaries’ operating costs;                                                                                                                 
  require significant management time and attention; and                                                                                                                                                
  subject us to remedies, administrative penalties and even criminal liabilities that may harm our Operating Subsidiaries’ business, including fines assessed for our Operating Subsidiaries curren...  

   8  

We are aware that, recently, the
PRC government initiated a series of regulatory actions and statements to regulate business operations in certain areas in China with
little advance