Company: MAGH
Filing Date: 2025-09-15
Form Type: 20-F
Source: 0001493152-25-013424
Chunk: 6

Company: Magnitude International Ltd
Filing Date: 2025-09-15
Form: 20-F
Item: Item 3
Chunk 6
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 of a variety of factors, in particular, the investments in residential, commercial and mixed-used
projects, as well as the general conditions and prospects of the local economy. Economic growth, urbanization, population growth, growth
in construction output and/or tourism may increase the demand for residential, commercial and mixed-used projects in Singapore, which
in turn will increase the demand for electrical installation services in Singapore. Many other factors affect the electrical engineering
sector of the construction industry in Singapore, including (i) general political, economic, financial and social developments in Singapore;
(ii) fluctuations in interest rates; (iii) availability of skilled labor; (iv) local government policies; and (v) cyclical trends of
the regional and global economies. If the electrical engineering sector of the construction industry in Singapore declines for any reason,
our business, results of operations, financial condition and future prospects could be adversely affected.

We
operate in a competitive market.

The
electrical engineering sector in Singapore is competitive and relatively fragmented. As of the date of this Annual Report, there were
over 2,200 contractors registered with the BCA under the ME05 (electrical engineering) workhead, of which only approximately 6.4% and
4.5% were of Grade L5 and Grade L6, respectively. Industry players generally compete with each other on market position, industry reputation,
track record, relationships with project owners, main contractors and industry professionals (such as project managers) and financial
standing. Some of our competitors may have more manpower and resources, more qualifications entitling them to provide a wider scope of
electrical engineering and/or construction services, longer operating histories, greater financial strength, stronger relationships with
customers and/or more established brand names and market recognition than we have. When we price our tenders or quotations or fix a contract
price with our customers, we may face keen competition and significant downward pricing pressure, thereby reducing our profit margins,
which will have an adverse effect on our profitability and results of operations. If we fail to adapt to market conditions and customer
preferences expediently or otherwise fail to provide a competitive bid as compared to our competitors, our potential customer may turn
to our competitors. As a result, our business, results of operations, financial condition and business prospects may be materially and
adversely affected.

   4  

Higher
prices of subcontracting, material, labor and other indirect costs may affect our results of operations and financial performance.

A
significant portion of our cost