Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 181

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 18
Chunk 181
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 difficult to predict how market forces or PRC government policy may impact the exchange rate between the
RMB and the HK$ in the future. The change in the value of the RMB relative to the HK$ may affect the Company’s financial
results reported in HK$ without giving effect to any underlying changes in the Company’s business or results of operations.
Remittances in currencies other than RMB by the Company in China must be processed through the PBOC or other China foreign exchange
regulatory bodies which require certain supporting documentation in order to affect the remittance.

As
a result, the Company is exposed to foreign exchange risk as revenues and results of operations may be affected by fluctuations in the
exchange rate between the HK$ and RMB. If the RMB depreciates against the HK$, the value of RMB revenues, earnings and assets as expressed
in HK$ financial statements will decline. The Company has not entered into any hedging transactions in an effort to reduce its exposure
to foreign exchange risk.

(b)
Credit risk

Financial
instruments that potentially subject the Company to a significant concentration of credit risk consist primarily of cash and accounts
receivable. As of December 31, 2024 and 2023 substantially all of the Company’s cash was held by major financial institutions located
in Hong Kong and the PRC, which management believes are of high credit quality.

For
the credit risk related to accounts receivable, the Company performs ongoing credit evaluations of its customers. The Company establishes
an allowance for doubtful accounts based upon estimates, factors surrounding the credit risk of specific customers and other information.
The allowance amounts were immaterial for all periods presented.

(c)
Customer concentration risk

The
Company has a high concentration risk. For the year ended December 31, 2024 and 2023, one customer accounted for the Group’s total
revenue and the total balance of account receivables for the year ended December 31, 2024 and 2023

(d)
Vendor concentration risk

For
the year ended December 31, 2024, the five and ten largest vendors accounted for 59% and 79% of the Company’s total purchases respectively.
For the year ended December 31, 2023 the five and ten largest vendors accounted for 59% and 79% of the Company’s total purchases
respectively

Note
3Accounts receivable, net

Accounts
receivable, net consisted of the following:

Schedule
of accounts receivable net