Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 10

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 10
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 external relations, while the government of the PRC is responsible for its foreign affairs and defense. As a separate customs territory,
Hong Kong maintains and develops relations with foreign states and regions. Based on certain recent developments, including the Law of
the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region issued by the Standing
Committee of the PRC National People’s Congress in June 2020, the U. S. State Department has indicated that the United States no
longer considers Hong Kong to have significant autonomy from China and then President Trump signed an executive order and the Hong Kong
Autonomy Act, or HKAA, to remove Hong Kong’s preferential trade status and to authorize the U. S. administration to impose blocking
sanctions against individuals and entities who are determined to have materially contributed to the erosion of Hong Kong’s autonomy.
The United States may impose the same tariffs and other trade restrictions on exports from Hong Kong that it places on goods from mainland
China. These and other recent actions may represent an escalation in political and trade tensions involving the U. S, China and Hong Kong,
which could potentially harm our business.

Given the relatively small geographic
size of Hong Kong, any of such incidents may have a widespread effect on our Operating Subsidiaries’ business operations, which
could in turn adversely and materially affect our business, results of operations and financial condition. It is difficult to predict
the full impact of the HKAA on Hong Kong and companies with operations in Hong Kong like us. Furthermore, legislative or administrative
actions in respect of China-U. S. relations could cause investor uncertainty for affected issuers, including us, and the market price of
our Ordinary Shares could be adversely affected.

The imposition of
tariffs and export restrictions, including the resulting trade wars and other trade barriers, have resulted in the cancellation of a
substantial number of orders and a delay or reduction in further orders from our sole customer, Spectrum Brands, which has had a
material adverse effect on our business and results of operations.

On
February 1, 2025, President Trump imposed a 10% tariff on goods from Hong Kong targeting imports originating from the PRC. On April
2, 2025, President Trump declared that foreign trade and economic practices had created a national emergency under the International
Emergency Economic Powers Act of 1977 (the “ IEEPA”) and imposed across-the-board tariffs on all countries, along with
individual reciprocal higher tariffs for