Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 33

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 33
---
 material and adverse effect on our results of operations and the value of your investment.

Most of our Operating Subsidiaries’
sales are settled in USD. Our Operating Subsidiaries currently do not have a foreign currency hedging policy. For the fiscal year ended
December 31, 2024, our Operating Subsidiaries did not record any foreign exchange gain or loss. For the fiscal year
ended December 31, 2023, our Operating Subsidiaries recorded a net foreign exchange gain of approximately HK$213,000. For the fiscal year
ended December 31, 2022, our Operating Subsidiaries did not record any foreign exchange gain or loss. Significant volatility in foreign
exchange rates may negatively affect our results of operations and other comprehensive income.

In addition, our Operating Subsidiaries’
revenues and expenses will also be denominated in Hong Kong dollars. Although the exchange rate between of the Hong Kong dollar to the
U. S. dollar has been pegged since 1983, we cannot assure you that the Hong Kong dollar will remain pegged to the U. S. dollar. Any significant
fluctuations in the exchange rates between Hong Kong dollars and U. S. dollars may have a material adverse effect on our Operating Subsidiaries’
revenue and financial condition. For example, to the extent that we were required to convert U. S. dollars we received from our IPO into
Hong Kong dollars for our Operating Subsidiaries’ operations, fluctuations in the exchange rates of the Hong Kong dollar against
the U. S. dollar would have an adverse effect on the amounts we receive from the conversion. We have not used any forward contracts, futures,
swaps, or currency borrowings to hedge our exposure to foreign currency risk.

  21  

Our Operating Subsidiaries are exposed to the
credit risk of their customers.

The credit risk exposure of our
Operating Subsidiaries mainly arises from trade receivables from our customers. As of December 31, 2024, 2023 and 2022, our Operating
Subsidiaries’ accounts receivable amounted to approximately HK$37,342,000, HK$31,486,000 and HK$32,938,000, respectively, which
represented approximately 38.7%, 30.6% and 41.2% of total assets, respectively. For the fiscal years ended December 31, 2024,