Company: MEGL
Filing Date: 2025-05-09
Form Type: F-1
Source: 0001641172-25-009448
Chunk: 179

Company: Magic Empire Global Ltd
Filing Date: 2025-05-09
Form: F-1
Chunk 179
---
         — |     |      |    — |   |     |              |   800,000 |     |      | 44.6 | % |     |              | 102,991 |     |      | 44.6 | % |
| Customer H |     |              |   819,940 |     |      | 35.6 | % |     |              |   435,588 |     |      | 24.3 | % |     |              |  56,077 |     |      | 24.3 | % |
| Customer I |     |              |   842,496 |     |      | 36.6 | % |     |              |         — |     |      |    — |   |     |              |       — |     |      |    — |   |
|            |     |              | 1,662,436 |     |      | 72.2 | % |     |              | 1,415,588 |     |      | 78.9 | % |     |              | 182,241 |     |      | 78.9 | % |

Interest rate risk

The Group’s exposure on fair value interest rate risk mainly arises from its fixed deposits with bank. It also has exposure on cash flow interest rate risk which is mainly arising from its deposits with banks.

In respect of the exposure to cash flow interest rate risk arising from floating rate non-derivative financial instruments held by the Group, such as cash, at the end of the reporting period, the Group is not exposed to significant interest rate risk as the interest rates of cash at bank are not expected to change significantly.

Foreign currency risk

The Group is exposed to foreign currency risk primarily through service income that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to this risk are primarily United States dollars (US$). As HK$ is currently pegged to US$, the Group’s exposure to foreign exchange fluctuations is minimal.

| F-20 |

<div align='center'>MAGIC EMPIRE GLOBAL LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

| 2. | SUMMARY                                    
 OF SIGNIFICANT ACCOUNTING POLICIES (cont.) |

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable