Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 1

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 1
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  We                                                                                                                                          
  Investors                                                                                                                                   
  You                                                                                                                                         
  We                                                                                                                                          

Risks
Relating to Our Corporate Structure

We
rely on dividends and other distributions on equity paid by our subsidiaries to fund any cash and financing requirements we may have,
and any limitation on the ability of our subsidiaries to make payments to us could have a material adverse effect on our ability to conduct
our business.

MEGL
is a holding company, and we rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing
requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we
may incur. If any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its
ability to pay dividends or make other distributions to us.

Under
the current practice of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by us.
Any limitation on the ability of our Hong Kong subsidiaries to pay dividends or make other distributions to us could materially and adversely
limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund
and conduct our business.

Risks
Related to Our Business and Industry

Our
business performance is highly influenced by the market condition of Hong Kong.

All
our business operations were concentrated in Hong Kong. Any material deterioration in the financial and economic conditions of Hong Kong
could materially and adversely affect our business and prospects. The Hong Kong corporate finance market is susceptible to changes in
the global as well as domestic economic, social and political conditions including, without limitation, interest rate fluctuations, volatility
of foreign currency exchange rates, monetary policy changes, outcome of the Sino-US trade dispute, the U. S. interest rate outlook, social
unrest in Hong Kong and legal and regulatory changes. When there are unfavorable changes to the global or local market conditions, the
capital 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.

   8  

We
operate in a heavily regulated industry, and are subject to extensive and evolving regulatory requirements in the jurisdictions in which
we