Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 27

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 27
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 business, financial condition and results of operations.

Our
operations are primarily located in Hong Kong through our operating subsidiaries in Hong Kong and a few of our clients are PRC corporates.
As such we may become subject to PRC laws relating to the collection, use, sharing, retention, security, and transfer of confidential
and private information, such as personal information and other data. These laws apply not only to third-party transactions, but also
other parties with which we have commercial relations. These laws continue to develop, and the PRC government may adopt other rules and
restrictions in the future. Non-compliance could result in penalties or other significant legal liabilities.

  21  

The
PRC Data Security Law, which was promulgated by the Standing Committee of the National People’s Congress on June 10, 2021 and will
take effect on September 1, 2021, requires data collection to be conducted in a legitimate and proper manner, and stipulates that, for
the purpose of data protection, data processing activities must be conducted based on data classification and hierarchical protection
system for data security. As the Data Security Law was recently promulgated and has not yet taken effect, we may be required to make
further adjustments to our business practices to comply with this law. After the Data Security Law takes effect, if our data processing
activities were found to be not in compliance with this law, we could be ordered to make corrections, and under certain serious circumstances,
such as severe data divulgence, we could be subject to penalties, including the revocation of our business licenses or other permits.
Furthermore, the recently issued Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law require
(i) speeding up the revision of the provisions on strengthening the confidentiality and archives management relating to overseas issuance
and listing of securities and (ii) improving the laws and regulations relating to data security, cross-border data flow, and management
of confidential information. As there remain uncertainties regarding the further interpretation and implementation of those laws and
regulations, we cannot assure you that we will be compliant such new regulations in all respects, and we may be ordered to rectify and
terminate any actions that are deemed illegal by the regulatory authorities and become subject to fines and other sanctions. As a result,
we may be required to suspend our relevant businesses or face other penalties, which may materially and adversely affect our business,
financial condition, and results of operations.

The
enactment of Law