Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 142

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 19
Chunk 142
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 effect on a per-share basis of the potential ordinary shares (e. g., convertible securities, options and warrants) as if
they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have
an anti-dilutive effect (i. e., those that increase income per share or decrease loss per share) are excluded from the calculation of
diluted EPS. For the years ended December 31, 2022, 2023, and 2024, there werenodilutive shares.

MAGIC
EMPIRE GLOBAL LIMITEDNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

  SUMMARY                                     
  OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
 ──────────────────────────────────────────────

Credit
risk

Assets
that potentially subject the Group to a significant concentration of credit risk primarily consist of cash, accounts receivable and other
current assets.

The
Group believes that there is no significant credit risk associated with cash, which were held by reputable financial institutions in
the jurisdictions where the Company and its subsidiaries are located. The Hong Kong Deposit Protection Board pays compensation up to
a limit of HK$ 500,000 64,369 800,000 102,991 127,511,687 16,415,630 3,229,557 415,767

The
Group has designed their credit policies with an objective to minimize their exposure to credit risk. The Group’s accounts receivable
are short term in nature and the associated risk is minimal. The Group conducts credit evaluations on its clients and generally does
not require collateral or other security from such clients. The Group periodically evaluates the creditworthiness of the existing clients
in determining an allowance for doubtful accounts primarily based upon the age of the receivables and factors surrounding the credit
risk of specific clients.

Details
of the customers accounting for 10% or more of total operating revenue are as follows:

SCHEDULE
OF TOTAL OPERATING REVENUE

                For                                                                         
                the year ended                                                              
                December 31,                                                                
                2022                                                                        
                HK$                                                                         
  Customer      1,600,000           11.6      —              —         —              —     
  A                                                                                         
 ────────────────────────────────────────────────────────────────────────────────────────────
  Customer      1,400,000           10.2      1,400,000      11.