Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 2

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 2
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 operate.

The
corporate finance services industry in which we operate is highly regulated and any material changes to the laws and regulations applicable
to us could significantly affect our operations. We cannot assure you that the business model and operations we currently have in place
would be in compliance with any changes or updates to the regulatory requirements. Costs of compliance could increase and our fee structure
may have to be adjusted. For instance, we may need to increase our headcounts if requirements over sponsor work become more stringent
or obtain more licenses if the licensing requirements change. The sanctions imposed by the SFC against large sponsor firms for substandard
due diligence in several recent widely-publicized cases demonstrate that the SFC expects high standards of sponsor’s conduct and
we will need to continue to enhance our internal controls and systems in respect of our sponsor work in accordance with new regulatory
requirements or guidance. If capital ratio requirements increase and certain products or activities are subject to limitations, the range
of services we offer could be restricted, and revenue growth and profitability could be materially and adversely impacted. Moreover,
our licensed entity is under the supervision and monitoring of the SFC and the Stock Exchange and must remain fit and proper to the satisfaction
of the regulators in order to retain its license(s). The SFC may also conduct regulatory inspections and investigations on our business
activities from time to time. Any non-compliance with applicable laws, regulations, guidance or codes or any negative findings made by
the regulators may result in (i) fines, deterrent penalties, disciplinary actions against us, our Responsible Officers, Licensed Representatives
or any of our personnel; or (ii) suspension or revocation of some or all of (a) our registrations or licenses for carrying on our business
activities; or (b) the approvals or licenses granted to our personnel enabling them to carry out their responsibilities in our Group.
For instance, conditions may be imposed on our licenses restricting us to carry on our business or our Responsible Officers or Licensed
Representatives may be banned from the industry, for a specific period of time. Accordingly, our business operation, reputation, financial
condition and results of operations might be materially and adversely affected.

Our
future financial performance and ability to succeed may be difficult to predict given that our operating history in the corporate finance
services industry in Hong Kong is relatively short.

Our
future revenues and cash flows may fluctuate significantly given that our operating history in the corporate finance services industry
in Hong Kong is relatively short, rendering it difficult to predict our results of operations and