Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 26

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 26
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 Individual Foreign Exchange Rules relating to the overseas direct investment or the engagement in the issuance or
trading of securities overseas by our Chinese resident stockholders may subject such stockholders to fines or other liabilities.

Other
than Circular 37, our ability to conduct foreign exchange activities in China may be subject to the interpretation and enforcement of
the Implementation Rules of the Administrative Measures for Individual Foreign Exchange promulgated by SAFE on January 5, 2007 (as amended
and supplemented, the “ Individual Foreign Exchange Rules”) and the Foreign Exchange Administration Regulations of the PRC,
which was promulgated by the State Council on January 29, 1996, became effective on April 1, 1996 and last amended on August 1, 2008
(which became effective on August 5, 2008). Under the Individual Foreign Exchange Rules and the Foreign Exchange Administration Regulations,
any Chinese individual seeking to make a direct investment overseas or engage in the issuance or trading of negotiable securities or
derivatives overseas must make the appropriate registrations in accordance with SAFE provisions. Chinese individuals who fail to make
such registrations may be subject to warnings, fines or other liabilities.

  20  

We
may not be fully informed of the identities of all our beneficial owners who are Chinese residents. For example, because the investment
in or trading of our shares will happen in an overseas public or secondary market where shares are often held with brokers in brokerage
accounts, it is unlikely that we will know the identity of all of our beneficial owners who are Chinese residents. Furthermore, we have
no control over any of our future beneficial owners and we cannot assure you that such Chinese residents will be able to complete the
necessary approval and registration procedures required by the Individual Foreign Exchange Rules.

It
is uncertain how the Individual Foreign Exchange Rules will be interpreted or enforced and whether such interpretation or enforcement
will affect our ability to conduct foreign exchange transactions. Because of this uncertainty, we cannot be sure whether the failure
by any of our Chinese resident stockholders to make the required registration will subject our subsidiaries to fines or legal sanctions
on their operations, delay or restriction on repatriation of proceeds of this offering into the China, restriction on remittance of dividends
or other punitive actions that would have a material adverse effect on our business, results of operations and financial condition.

We
may become subject to a variety of laws and other obligations regarding data protection, and any failure to comply with applicable laws
and obligations could have a material and adverse effect on our