Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 62

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 62
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 as domestic economic, social and political conditions including but not limited to interest rate fluctuations,
volatility of foreign currency exchange rates, monetary policy changes and legal and regulatory changes. When there are unfavorable changes
to the global or local market conditions, the financial and securities market in Hong Kong may experience negative fluctuations in its
performance. It may directly affect the demand for our services, our pricing strategies, the level of our business activities and consequently
our revenue derived therefrom. This may materially and adversely affect our financial condition and results of operations.

Our
ability to manage our staff costs

Our
staff costs are the largest cost we incur in our business operations and our ability to manage our staff costs affects our results of
operations. Our staff costs consist primarily of salaries, bonuses and mandatory provident fund contribution. Any upward changes in the
staff costs would impact our results of operations negatively.

Rules
and regulations governing listed companies on the Stock Exchange

We
provide corporate finance advisory services to clients who are listing applicants or listed companies or their shareholders on the Stock
Exchange. These clients are required to comply with the Listing Rules, the GEM Listing Rules, the Takeovers Code and other rules and
regulations where applicable. Any changes to such rules and regulations, particularly those affecting the appointment and the role of
sponsor in listing applications and the appointment and role of financial adviser in specific transactions, may affect the demand for
and scope of our corporate finance advisory services which may in turn materially and adversely affect our results of operations.

Competition
in the financial services industry in Hong Kong

There
is a significant number of existing market participants in the financial and securities services industry in Hong Kong providing services
similar to ours. Our larger competitors may have advantages over us such as having better brand recognition and reputation in the market,
wider range of value adding services, stronger human and financial resources, longer operating histories, and operational presence in
more geographic locations. We also face competition from local medium and small-sized financial services providers which offer similar
range of services. New participants may enter into the market insofar as they have engaged appropriate qualified professionals and obtained
the requisite regulatory licenses. In addition, competition creates an unfavorable pricing environment in the market in which we operate.
Intensified competition may cause us to reduce our service fees in order to compete with other market players, which could place significant
pressure on our ability to maintain profitability and is particularly acute during market slowdowns, and will in turn materially and
adversely affect our market share,