Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 24

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 24
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 the market price of our shares could be adversely affected. Such a prohibition would significantly affect our ability
to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition,
and prospects.

The
SEC is assessing how to implement other requirements of the HFCAA, including the listing and trading prohibition requirements described
above. Future developments in respect of increasing U. S. regulatory access to audit information are uncertain, as the legislative developments
are subject to the legislative process and the regulatory developments are subject to the rule-making process and other administrative
procedures.

While
the CSRC, the SEC and the PCAOB have entered into the SOP Agreements regarding the inspection of PCAOB-registered accounting firms in
Mainland China, there can be no assurance that we will be able to comply with requirements imposed by U. S. regulators if there is significant
change to current political arrangements between Mainland China and Hong Kong, or if any component of our auditor’s work papers
become located in Mainland China in the future. Delisting of our shares would force holders of our shares to sell their shares. The market
price of our shares could be adversely affected as a result of anticipated negative impacts of these executive or legislative actions
upon, regardless of whether these executive or legislative actions are implemented and regardless of our actual operating performance.

  19  

The
recent joint statement by the SEC, proposed rule changes submitted by Nasdaq, and an act passed by the U. S. Senate and the U. S. House
of Representatives, all call for additional and more stringent criteria to be applied to emerging market companies. These developments
could add uncertainties to our offering, business operations, share price and reputation.

U. S.
public companies that have substantially all of their operations in China (including in Hong Kong) have been the subject of intense scrutiny,
criticism and negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny,
criticism and negative publicity has centered on financial and accounting irregularities and mistakes, a lack of effective internal controls
over financial accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of
fraud.

As
a result of these scrutiny, criticism and negative publicity, the publicly traded stock of many U. S. listed Chinese companies sharply
decreased in value and, in some cases, has become virtually worthless. Many of these companies are now subject to