Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 9

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 9
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 impact on the global,
regional and the local economy of Singapore which is the base of our Group’s business. During the pandemic, the demand for our
services had been lowered, the tender processes of prospective projects had been delayed and/or our projects on hand had been delayed
or suspended. Moreover, as all our foreign workers are housed at workers’ dormitories, clusters were detected at multiple migrant
worker dormitories at the beginning of the pandemic which had resulted in a lot of our foreign workers infected with COVID-19 or otherwise
required to quarantine in their dormitories for over four months. All these had materially and adversely affected our financial condition,
operating results and cash flows.

If
there is a resurgence of COVID-19 and/or new variants of COVID-19 evolve to be more transmissible and virulent than the existing strains,
this may result in a tightening of restrictions and regulations on businesses which may impact us and our customers and suppliers. If
we or our customers and suppliers are forced to close down our/their businesses with prolonged disruptions to our/their operations, we
may fail to complete our contracts on time, experience a delay or shortage of raw materials, supplies and/or services by our suppliers
or subcontractors, or termination of our contracts by our customers. In addition, if any of our employees are suspected of having contracted
COVID-19, some or all of our employees may be quarantined thus causing a shortage of labor and we will be required to disinfect our office.
In such event, our operations may be severely disrupted. If there is a resurgence of COVID-19, it may have a negative impact on the local,
regional and global economy, which will have negative impacts on our customers’ businesses and hence our businesses will also be
affected. All these may have a material and adverse effect on our business, financial condition and results of operations. In addition,
tightened travel restrictions by the Singapore or other governments may make it more difficult for us to hire suitable manpower from
overseas jurisdictions. This may lead to a stagnation in our workforce strength, thereby affecting our potential growth as we rely heavily
on skilled labor which may be a material and adverse effect on our business, financial condition and results of operations.

We
depend in part on our subcontractors to assist us in the implementation of our projects, and our failure to maintain stability in subcontracting
costs and to monitor the performance of our subcontractors could harm our business.

Subcontracting
costs may fluctuate as