Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 31

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 31
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States or China that affect trade relations may cause global economic turmoil and potentially have a negative impact on our markets,
our business, or our results of operations, as well as the financial condition of our clients. and we cannot provide any assurances as
to whether such actions will occur or the form that they may take.

Under
the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, Hong Kong is exclusively in charge
of its internal affairs and external relations, while the government of the PRC is responsible for its foreign affairs and defense. As
a separate customs territory, Hong Kong maintains and develops relations with foreign states and regions. However, based on recent political
development, the U. S. State Department has indicated that the United States no longer considers Hong Kong to have significant autonomy
from China. The Hong Kong’s preferential trade status was removed by the United States government and the United States may impose
the same tariffs and other trade restrictions on exports from Hong Kong that it places on goods from mainland China. These and other
recent actions may represent an escalation in political and trade tensions involving the U. S, China and Hong Kong, which could potentially
harm our business.

Fluctuations
in exchange rates could have a material and adverse effect on our results of operations and the value of your investment.

Our
revenues and expenses will be denominated predominantly in Hong Kong dollars. Although the exchange rate between the Hong Kong dollar
to the U. S. dollar has been pegged since 1983, we cannot assure you that the Hong Kong dollar will remain pegged to the U. S. dollar.
Any significant fluctuations in the exchange rates between Hong Kong dollars to U. S. dollars may have a material adverse effect on our
revenue and financial condition. For example, to the extent that we are required to convert U. S. dollars we receive from this offering
into Hong Kong dollars for our operations, fluctuations in the exchange rates between Hong Kong dollars against the U. S. dollar would
have an adverse effect on the amounts we receive from the conversion. We have not used any forward contracts, futures, swaps or currency
borrowings to hedge our exposure to foreign currency risk.

  23  

Risks
Related to our shares

The
market price of our shares may be subject to rapid and substantial volatility regardless of our operating performance, and such volatility
may make it difficult for prospective investors to assess the rapidly changing value of our shares.

The
market