Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 7

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 7
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 scope of our business and client base, it is critical for us to be able to timely
address potential conflicts of interest, including situations where two or more interests within our businesses naturally exist but are
in competition or conflict. We have put in place internal control and risk management procedures that are designed to identify and address
conflicts of interest. However, appropriately identifying and managing actual, potential, or perceived conflicts of interest is complex
and difficult, and our reputation and our clients’ confidence in us could be damaged if we fail, or appears to fail, to deals appropriately
with one or more actual, potential, or perceived conflicts of interest. It is possible that actual, potential, or perceived conflicts
of interest could also give rise to client dissatisfaction, litigation, or regulatory enforcement actions. Regulatory scrutiny of, or
litigation in connection with, conflicts of interest could have a material adverse effect on our reputation, which could materially and
adversely affect our business in a number of ways, including a reluctance of some potential clients and counterparties to do business
with us. Any of the foregoing could materially and adversely affect our reputation, business, financial condition, and results of operations.

Our
corporate finance advisory business may be subject to professional liabilities.

We
provide professional advices when providing corporate finance advisory services to our clients. Our clients relying on our professional
advice may suffer loss as a result of our negligence in providing such advice and may claim compensation against us. We are therefore
exposed to the risks arising from, among others, possible claims or lawsuits in respect of professional negligence and employee infidelity.
Although we have adopted relevant internal control measures, there is no assurance that the measures can completely eliminate all future
possible professional negligence and/or employee infidelity. Should we experience any event of professional liabilities, such as claims
or lawsuits, our prospects, financial condition and reputation could be materially and adversely affected.

We
may be subject to litigation, arbitration or other legal proceeding risk.

We
may be subject to arbitration claims and lawsuits in the ordinary course of our business. As of the date of this Annual Report, we are
not a party to, and are not aware of any threat of, any legal proceeding that, in the opinion of our management, is likely to have a
material adverse effect on our business, financial condition or operations. Actions brought against us may result in settlements, awards,
injunctions, fines, penalties and other results adverse to us. A substantial judgment, settlement, fine or penalty