Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 6

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 6
---
 may affect our operations.

Our
Group has a team of experienced and competent management who is responsible for directing and managing daily operations, monitoring and
supervising compliance and risk management, overseeing financial condition and performance, allocating and budgeting human resources
and formulating business strategies. Leveraging on their experience and network in the industry, we have been successfully expanding
our client base and source of deals and transactions. However, we cannot assure you that we can retain the services of our key management
and find suitable replacement if any of them terminate their engagement with us given the competition for experienced and competent personnel
in the industry is intense.

  11  

Other
than our senior management, we also rely on our professional staff in different business operations to implement our business strategies,
provide quality services to clients, manage our compliance and risks, identify and capture business opportunities, maintain relationship
with clients and procure new clients. Loss of our professional staff and failure to recruit replacement will materially and adversely
affect our business operations.

We
recorded net operating cash outflow for the years ended December 31, 2022 and 2024

For
the years ended December 31, 2022 and 2024, we recorded net operating cash outflow of HK$910,364 and HK$4,649,862 (US$598,615), respectively.
For the year ended December 31, 2023, we recorded net operating cash inflow of HK$94,490. We cannot assure you that we will not
record net cash outflow in the future. If we are unable to obtain sufficient funds to finance our business, our liquidity, results of
operations and financial condition may be materially and adversely affected. If we need to resort to other financing activities to generate
additional cash, we may incur additional financing costs, and we cannot assure you that we will be able to obtain the required financing
on terms acceptable to us, or at all, at the material time.

We
may encounter potential conflicts of interest from time to time, and the failure to identify and address such conflicts of interest could
adversely affect our business.

We
face the possibility of actual, potential, or perceived conflicts of interest in the ordinary course of our business operations. Conflicts
of interest may exist between (i) our different businesses; (ii) us and our clients; (iii) our clients; (iv) us and our employees; and
(v) our clients and our employees. As we expand the