Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 30

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 30
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 country, two systems” principle and the level of autonomy as currently in place
at the moment. Any changes in the state of political environment in Hong Kong may materially and adversely affect our business and operation.
Additionally, intellectual property rights and confidentiality protections in Hong Kong may not be as effective as in the United States
or other countries. These uncertainties could limit the legal protections available to us, including our ability to enforce our agreements
with our clients.

Hong
Kong regulatory requirement of prior approval for transfer of shares in excess of certain threshold may restrict future takeovers and
other transactions.

Section
132 of SFO requires prior approval from the SFC for any company or individual to become a substantial shareholder of a SFC licensed company
in Hong Kong. Under the SFO, a person will be a “substantial shareholder” of a licensed company if he, either alone or with
associates, has an interest in or is entitled to control the exercise of the voting power of more than 10% of the total number of issued
shares of the licensed company, or exercises control of 35% or more of the voting power of a company that controls more than 10% of the
voting power of the licensed company. This regulatory requirement may discourage, delay or prevent a change in control of the Company,
which could deprive our shareholders the opportunity to receive a premium for their shares as part of a future sale and may reduce the
price of our shares upon the consummation of a future proposed business combination.

Changes
in international trade policies, trade disputes, barriers to trade, or the emergence of a trade war may dampen growth in China and other
markets where the majority of our clients reside.

Political
events, international trade disputes, and other business interruptions could harm or disrupt international commerce and the global economy,
and could have a material adverse effect on us and our customers, service providers, and other partners. International trade disputes
could result in tariffs and other protectionist measures which may materially and adversely affect our business.

Tariffs
could increase the cost of the goods and products which could affect customers’ investment decisions. In addition, political uncertainty
surrounding international trade disputes and the potential of the escalation to trade war and global recession could have a negative
effect on customer confidence, which could materially and adversely affect our business. We may have also access to fewer business opportunities,
and our operations may be negatively impacted as a result. In addition, the current and future actions or escalations by either the United