Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 9

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 9
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 the foregoing claim
would develop into a lawsuit. Lawsuits and litigations may cause us to incur defense costs, utilize a significant portion of our resources
and divert management’s attention from our day-to-day operations, any of which could harm our business. Any settlements or judgments
against us could have a material adverse impact on our financial condition, results of operations and cash flows. In addition, negative
publicity regarding claims or judgments made against us may damage our reputation and may result in a material adverse impact on us.

Our
reputation may be damaged due to negative events about our business.

Our
reputation is susceptible to damage in case of any negative events in relation to our operations, including, without limitation, negative
publicity or media coverage, development of scandals, litigation and disputes, and regulatory enquiries or enforcement actions taken
against us or our employees. We cannot assure that such negative events will not happen in the future. If they materialize, it may have
a material adverse impact on our reputation and in turn our business activities and results of operations.

We
may be unable to successfully implement or implement in full our future business plans.

Our
success is dependent on, among other things, our proper and timely execution of our future business plans. Our future business plans
may be hindered by factors beyond our control, such as competition within the industry we operate, our ability to cope with high exposure
to financial risk, operational risk, market risk and credit risk as our business and client base expands and our ability to provide,
maintain and improve the level of human and other resources in servicing our clients. As such, we cannot assure that our future business
plans will materialize, or that our objectives will be accomplished fully or partially, or our business strategies will generate the
intended benefits to us as initially contemplated. If we fail to implement our business development strategies successfully, our business
performance, financial condition and future prospects and growth could be materially and adversely affected.

We
may in the future pursue acquisitions and joint ventures as part of our growth strategy. Any future acquisition or joint venture may
result in exposure to potential liabilities of the acquired companies, significant transaction costs and present new risks associated
with entering additional markets or offering new products and integrating the acquired companies or newly established joint ventures.
Moreover, we may not have sufficient management, financial and other resources to integrate companies we acquire or to successfully operate
joint ventures and we may be unable to profitably operate our expanded company structure. Additionally, any new business