Company: MEGL
Filing Date: 2025-05-09
Form Type: F-1
Source: 0001641172-25-009448
Chunk: 184

Company: Magic Empire Global Ltd
Filing Date: 2025-05-09
Form: F-1
Chunk 184
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,713). The Group considered the likelihood of the triggering event to share conversion is uncertain and determined the fair value of the investment was less than its carrying value.

During the year ended December 31, 2024, the Group has new investment of HK$8,500,000 (US$1,094,275) in a private company (“Company D”), representing 1.9% equity ownership of Company D, in which the Group does not have any significant influence and such investment does not have readily determinable fair value. Company D is a contract manufacturer of affordable luxury leather goods. During the year ended December, 31 2024, the Company redeemed all the investments of HK$48,253,736 (US$6,212,101) with a net gain on sale of investment of HK$1,105,998 (US$142,384).

| F-23 |

<div align='center'>MAGIC EMPIRE GLOBAL LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

7. ACCRUALS AND OTHER PAYABLES

Accruals and other payables consist of the following:

|                          |     |              As 
 of December 31, |           |     |      |         |     |      |        |
|                          |     |            2023 |           |     | 2024 |         |     | 2024 |        |
|                          |     |             HK$ |           |     |  HK$ |         |     |  US$ |        |
| Accrued professional fee |     |                 |   892,000 |     |      | 670,113 |     |      | 86,269 |
| Other accrued expenses   |     |                 |   187,000 |     |      |  23,121 |     |      |  2,977 |
| Total                    |     |                 | 1,079,000 |     |      | 693,234 |     |      | 89,246 |

8. RELATED PARTY TRANSACTIONS AND BALANCES

As of December 31, 2022, the Group has balances due from related parties of HK$96,700. Balances represented the funds advanced to the Chairman and Chief Executive Officer (“CEO”), who are also the directors of the Company. The balance is unsecured and interest-free.

In March 2023, the related parties repaid all the outstanding balances of HK$96,