Company: MEGL
Filing Date: 2025-07-11
Form Type: F-1/A
Source: 0001641172-25-018709
Chunk: 98

Company: Magic Empire Global Ltd
Filing Date: 2025-07-11
Form: F-1/A
Chunk 98
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4,649,862 | ) |     |      |   (598,615 | ) |
| Net cash provided by (used in) investing activities |     |                              | (27,919,010 | ) |     |      |  39,753,736 |   |     |      |  5,117,826 |   |
| Net cash used in by financing activities            |     |                              |  (1,581,900 | ) |     |      |           — |   |     |      |          — |   |
| Net change in cash                                  |     |                              | (29,406,420 | ) |     |      |  35,103,874 |   |     |      |  4,519,211 |   |
| Cash at beginning of year                           |     |                              | 121,814,233 |   |     |      |  92,407,813 |   |     |      | 11,896,419 |   |
| Cash at end of year                                 |     |                              |  92,407,813 |   |     |      | 127,511,687 |   |     |      | 16,415,630 |   |

| 54 |

Operating activities

Our cash inflow from operating activities was principally from the receipt of revenue. Our cash outflow used in operating activities was principally for payment of staff cost and operating expenses.

For the year ended December 31, 2023, we had net cash provided by operating activities of HK$94,490 mainly arising from net loss from our operations of HK$483,812 as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items consisted mainly of (i) amortization of right-of-use asset for our Hong Kong office of HK$1,895,294; (ii) depreciation charge of HK$209,966; and (iii) interest on lease liabilities of HK$139,296. Changes in operating assets and liabilities mainly included: (i) increase in accounts receivable of HK$314,033 due to billing made prior to year-end remained unsettled; (ii) changes in operating lease liabilities of HK$2,044,020; (iii) decrease in contract liabilities of HK$1,890,032 due to recognition of revenue and reversal of contract liabilities upon achievement of milestones of our projects; and (iv) settlement of tax recoverable of HK