Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 19

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 19
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audits and their quality control procedures. As a result, if there is any component of our auditor’s work papers become located
in Mainland China in the future, such work papers will not be subject to inspection by the PCAOB. As a result, investors would be deprived
of such PCAOB inspections, which could result in limitations or restrictions to our access of the U. S. capital markets.

As
part of a continued regulatory focus in the United States on access to audit and other information currently protected by national law,
in particular Mainland China’s, in June 2019, a bipartisan group of lawmakers introduced bills in both houses of the U. S. Congress
which, if passed, would require the SEC to maintain a list of issuers for which PCAOB is not able to inspect or investigate the audit
work performed by a foreign public accounting firm completely. The proposed Ensuring Quality Information and Transparency for Abroad-Based
Listings on our Exchanges (“ EQUITABLE”) Act prescribes increased disclosure requirements for these issuers and, beginning
in 2025, the delisting from U. S. national securities exchanges, such as the Nasdaq, of issuers included on the SEC’s list for three
consecutive years. It is unclear if this proposed legislation will be enacted. Furthermore, there have been recent deliberations within
the U. S. government regarding potentially limiting or restricting Mainland China-based companies from accessing U. S. capital markets.

On
May 20, 2020, the U. S. Senate passed the HFCAA, which includes requirements for the SEC to identify issuers whose audit work is performed
by auditors that the PCAOB is unable to inspect or investigate completely because of a restriction imposed by a non-U. S. authority in
the auditor’s local jurisdiction. The U. S. House of Representatives passed the HFCAA on December 2, 2020, and the HFCAA was signed
into law on December 18, 2020. Additionally, in July 2020, the U. S. President’s Working Group on Financial Markets issued recommendations
for actions that can be taken by the executive branch, the SEC, the PCAOB or other federal agencies and department with respect to Chinese
companies listed on U. S. stock exchanges and their audit firms, in an effort to protect investors in the United States. In response,
on November 23, 2020, the SEC issued guidance highlighting certain risks (and their implications