Company: MEGL
Filing Date: 2025-05-09
Form Type: F-1
Source: 0001641172-25-009448
Chunk: 185

Company: Magic Empire Global Ltd
Filing Date: 2025-05-09
Form: F-1
Chunk 185
---
700 to the Group.

As of December 31, 2024 and 2023, the balance with related parties was nil.

9. CONTRACT LIABILITIES

The Group’s contract liabilities include the upfront payments received upon signing of the contract for IPO/IFA/FA services and advances from clients related to CA services on the Group’s consolidated balance sheets. These payments are non-refundable and are recognized as revenue as the Group’s performance obligation is satisfied. The Group’s contract liabilities are generally recognized as revenue within one year.

As of December 31, 2024 and 2023, the contract liabilities were comprised of the following:

|                        |     |              As 
 of December 31, |           |     |      |           |     |      |         |
|                        |     |            2023 |           |     | 2024 |           |     | 2024 |         |
|                        |     |             HK$ |           |     |  HK$ |           |     |  US$ |         |
| Contract liabilities   |     |                 | 1,100,000 |     |      | 1,400,000 |     |      | 180,233 |
| Advance from customers |     |                 |    64,000 |     |      |   244,000 |     |      |  31,412 |
| Total                  |     |                 | 1,164,000 |     |      | 1,644,000 |     |      | 211,645 |

The movement in contract liabilities is as follows:

|                                                                                                              |     | 2023 |            |   |     | 2024 |            |   |     | 2024 |          |   |
|                                                                                                              |     |  HK$ |            |   |     |  HK$ |            |   |     |  US$ |          |   |
| Balance at beginning                                                                                         
 of the year ended December 31                                                                                |     |      |  2,800,000 |   |     |      |  1,100,000 |   |     |      |  141,612 |   |
| Decrease in contract liabilities as a result                                                                 
 of recognizing revenue during the year was included in the contract liabilities at the beginning of the year |     |      | (2,300,000 | ) |     |      | (1,100,000 | ) |     |      | (