Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 10

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 10
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 that we may
acquire or joint ventures we may form, once integrated with our existing operations, may not produce expected or intended results.

  13  

Our
internal control system may become ineffective or inadequate.

We
rely on our internal control system to ensure effective business operations. We have established, maintained and relied on an internal
control system comprising a series of policies and procedures to record and process data in an accurate and timely manner, identify any
reporting errors, identify money-laundering and terrorist-financing activities, and ensure compliance with licensing and regulatory requirements.
There is no assurance that the internal control system in place will prove at all times adequate and effective to deal with all the possible
risks given the fast changing financial and regulatory environment in which we operate. We cannot assure that our internal control system
has no deficiencies or inherent limitations, or that it can fully prevent us from our employee misconduct. Such deficiencies or inherent
limitations may result in fines or disciplinary actions against us imposed by regulators, and may adversely affect our financial condition
and results of operations.

A
sustained outbreak of the COVID-19 pandemic could have a material adverse impact on our business, operating results and financial condition.

The
COVID-19 outbreak has led governments across the globe to impose a series of measures intended to contain its spread, including border
closures, travel bans, quarantine measures, social distancing, and restrictions on business operations and large gatherings. According
to WHO, the COVID-19 pandemic “has been on a downward trend” with immunity increasing due to increasing administration of
vaccines globally. Whilst there are remaining uncertainties posted by the potential evolution of COVID-19, the WHO Director-General announced
on 5 May 2023 that COVID-19 no longer constitutes a PHEIC and is now an established and ongoing health issue, concurring with the advice
of the IHR Emergency Committee of the WHO. Notwithstanding such announcement, disruptions like general slowdown in economic conditions
globally and volatility in the capital markets posed by COVID-19 are far-reaching and prevalent. The extent to which COVID-19 impacts
our business in the future will depend on future developments, which are highly uncertain and cannot be predicted, including new information
which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions
posed by COVID-19 or other matters of global concern continue for an extended period of time, our operating subsidiary’s ability