Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 52

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 4
Chunk 52
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 the competitive landscape of the financial service industry in Hong Kong and the market drivers. We have to compete effectively over
competitors in terms of capital resources, pricing, client base, service coverage and quality, talents and brand recognition. Our competitors
may have stronger capital resources, greater brand recognition in the market, more human resources, a wider range of services and longer
operating histories than that of us. Apart from large multinational financial institutions, we also face competition from newly established
local small and medium-sized financial services firms which offer similar range of services.

As
of December 31, 2024, there were 292 licensed corporations and 27 registered institutions licensed or registered to carry on Type 6 (advising
on corporate finance) regulated activity in Hong Kong. In addition, 116 licensed corporations and registered institutions can conduct
IPO sponsorship business as of December 31, 2024. With the increasing number of listed
companies in Hong Kong, equity fund raising on the Stock Exchange, either through IPOs or in the secondary market, has been substantial.
IPOs have been a main source of equity funding. We face keen competition in provision of corporate finance advisory
services in Hong Kong. Our Directors believe that competition in this market is primarily based on quality
and scope of services, market reputation, business network, pricing, human and financial resources.

COVID-19
Update

The
COVID-19 outbreak has led governments across the globe to impose a series of measures intended to contain its spread, including border
closures, travel bans, quarantine measures, social distancing, and restrictions on business operations and large gatherings. According
to WHO, the COVID-19 pandemic “has been on a downward trend” with immunity increasing due to increasing administration of
vaccines globally. Whilst there are remaining uncertainties posted by the potential evolution of COVID-19, the WHO Director-General announced
on 5 May 2023 that COVID-19 no longer constitutes a PHEIC and is now an established and ongoing health issue, concurring with the advice
of the IHR Emergency Committee of the WHO. Notwithstanding such announcement, disruptions like general slowdown in economic conditions
globally and volatility in the capital markets posed by COVID-19 are far-reaching and prevalent. The extent to which COVID-19 impacts
our business in the future will depend on future developments, which are highly uncertain and cannot be predicted, including new information
which may emerge concerning the severity of COVID-19 and the actions to contain COVID-