Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 30

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 30
---
 which may have a material and adverse effect on our business, financial condition and results of operations. In addition,
if any of our Operating Subsidiaries’ employees are suspected of having contracted COVID-19, some or all of such employees may be
quarantined, and our Operating Subsidiaries will be required to disinfect their workplaces and facilities. In the event that our Operating
Subsidiaries’ employees are placed under quarantine orders, our Operating Subsidiaries may face a shortage of labor and their operations
may be severely disrupted. Our Operating Subsidiaries’ revenue and profitability may also be materially affected if the COVID-19
outbreak or new outbreaks continue to materially affect the overall economic and market conditions in Hong Kong or China, as the economic
slowdown and/or negative business sentiment could potentially have an adverse impact on our Operating Subsidiaries’ business and
operations. We are uncertain as to when any new outbreaks of COVID-19 will be contained, and we cannot predict if the impact of any such
outbreaks or associated lockdown measures will be short-lived or long-lasting. If the outbreaks of COVID-19 are not effectively controlled
within a short period of time, our business, financial condition, results of operations and prospects may be materially and adversely
affected.

The first cases of the BA.5 variant
of COVID-19 in China were detected in the first week of July. In Shanghai, authorities ordered mass testing for 12 of its 16 districts
in response to new infections linked to a karaoke bar. Although the Chinese government lifted a months-long lockdown in Shanghai in June
2022, Shanghai remains subject to COVID-19 restrictions based on frequent testing. As of the date of this Annual Report, our Operating
Subsidiaries’ business operations have not been adversely affected by the BA.5 variant.

Global climate change and related legal and
regulatory developments could negatively affect our business, results of operations, liquidity and financial condition.

The effects of climate change
resulting from increased concentrations of carbon dioxide and other greenhouse gases in the atmosphere, such as droughts,
heat waves, flooding, wildfires, increased storm severity, sea level rise and power outages or shortages, particularly in certain regions
in which we operate, may materially adversely impact our business. China, where our manufacturing operations are conducted, is presently
undergoing the worst heat wave in 60 years while also contending with a prolonged drought drying up reservoirs and crippling hydropower