Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 67

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 67
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18.2%, or 3,101 points, from approximately 20,145 points on January 2, 2023 to approximately
17,044 points on December 29, 2023. The sluggish capital markets in Hong Kong throughout 2023 significantly reduce primary capital markets
and fund-raising activities in Hong Kong. The number of IPO launched decreased from 89 for the year ended December 31, 2022 to 68 for
the year ended December 31, 2023, with total funds raised decreased from approximately HK$104.6 billion for the year ended December 31,
2022 to approximately HK$46.3 billion for the year ended December 31, 2023, respectively during the same period. Accordingly, our IPO
sponsorship and underwriting services were adversely affected.

  45  

As
a result of the sluggish IPO market of HK, our compliance advisory services were also negatively affected due to the significant decrease
in number of newly listed company. Our revenue from compliance advisory services decreased by HK$2,576,222, or 56.5%, from HK$4,563,252
for the year ended December 31, 2022, to HK$1,987,030 for the year ended December 31, 2023, primarily due to the completion
of several compliance advisory projects during the year and the decrease in the number of compliance advisory customers.

During
the year ended December 31, 2022, in order to diversify our revenue stream, we expanded our financial advisory services to clients who
are pursuing listing on other stock exchange, including but not limited to Nasdaq. During the year ended December 31, 2023, our revenue
derived from financial advisory and independent financial advisory services increased by HK$2,070,000, or 41.1% from HK$5,035,000 for
the year ended December 31, 2022 to HK$7,105,000 for the year ended December 31, 2023.

During
the year ended December 31, 2023, we commenced the provision of corporate services and we recorded revenue of HK$200,000.

Selling,
general and administrative expenses

Selling,
general and administrative expenses increased by HK$903,898, or 5.8%, from HK$15,700,930 for the year ended December 31, 2022 to HK$16,604,828 for the year ended