Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 66

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 66
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 members of our Group domicile
or operate.

BVI

We
are not subject to any income tax in the BVI.

Hong
Kong profits tax

Our
Hong Kong subsidiary subject to a tax rate of 16.5% on the assessable profits arising in or derived from Hong Kong. From year of assessment
of 2019/2020 onwards, Hong Kong profits tax rates are 8.25% on assessable profits up to HK$2,000,000, and 16.5% on any part of assessable
profits over HK$2,000,000.

We
recorded nil income tax as we had no assessable profit during the year ended December 31, 2024 as interest income from bank and
redemption of investments are non-taxable and we had available tax losses brought forward from prior year.

Net
loss

As
a result of the above, our net loss increased from HK$483,812 for the year ended December 31, 2023 to HK$4,729,852 (US$608,912) for the
year ended December 31, 2024, primarily due to the increase in staff costs.

Year
ended December 31, 2023 compared with year ended December 31, 2022

Revenue

Our
revenue increased by HK$2,593,778, or 23.2% from HK$11,198,252 for the year ended December 31, 2022 to HK$13,792,030 for
the year ended December 31, 2023, which was mainly due to the increase in revenue we recognized for our IPO sponsorship services and
financial advisory and independent financial advisory services. Our revenue for IPO sponsorship services increased by HK$2,900,000, or
181.3% from HK$1,600,000 for the year ended December 31, 2022 to HK$4,500,000 for the year ended December 31, 2023 as we
completed one IPO project during the year ended December 31, 2023 and recognized the relevant revenue.

During
the year ended December 31, 2023, Hong Kong market was continued to be affected by uncertainties caused by the Sino-US tension, the Russo-Ukrainian
war and the credit crisis of property developers of the PRC. The general business environment remained difficult in Hong Kong in general.
Hang Seng Index plummeted by approximately