Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 31

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 31
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stations. This has resulted in power shortages and factories having to cease or limit their production operations. While the Company has
not experienced any disruptions in the operations of its manufacturing operating subsidiary, any such disruptions could have a material
adverse effect on its business, operations, liquidity and financial condition.

An economic downturn may adversely affect consumer
discretionary spending and demand for our products and services.

Our products and services may
be considered discretionary items for consumers. Factors affecting the level of consumer spending for such discretionary items include
general economic conditions and other factors, such as consumer confidence in future economic conditions, consumer sentiment, the availability
and cost of consumer credit, levels of unemployment and tax rates. Unfavorable economic conditions may lead consumers to delay or reduce
purchases of our products and services and consumer demand for our products and services may not grow as we expect. Our sensitivity to
economic cycles and any related fluctuation in consumer demand for our products and services may have an adverse effect on our operating
results and financial condition.

  20  

The war in Ukraine, conflicts in the Middle
East and shipping disruptions in the Red Sea could materially and adversely affect our business and results of operations.

The uncertainties regarding
the effects and duration of global hostilities, including the recent outbreak of war in Ukraine, the Israel---Gaza and Hezbollah
conflict and any associated military campaigns have affected global economic markets, including a dramatic increase in the price of
oil and gas, and the uncertain resolution of these conflicts could result in protracted and/or severe damage to the global economy.
Russia’s recent military interventions in Ukraine have led to, and may lead to, additional sanctions being levied by the
United States, the European Union and other countries against Russia and possibly countries that support, directly or indirectly,
Russia’s incursion. Russia’s military incursion and the resulting sanctions could adversely affect global energy and
financial markets and thus could affect the business of our sole customer, even though we do not have any direct exposure to Russia
or the adjoining geographic regions. In addition, Russia and Ukraine are major exporters of critical minerals needed for
semiconductors, which could have a significant negative impact on us and on our sole customer. The extent and duration of the
military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial. Any such
disruptions caused by Russian military action or resulting sanctions may magnify the impact of other risks described herein. We
cannot predict the progress or outcome of the situation