Company: MEGL
Filing Date: 2025-05-09
Form Type: F-1
Source: 0001641172-25-009448
Chunk: 93

Company: Magic Empire Global Ltd
Filing Date: 2025-05-09
Form: F-1
Chunk 93
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020; (iii) decrease in contract liabilities of HK$1,890,032 due to recognition of revenue and reversal of contract liabilities upon achievement of milestones of our projects; and (iv) settlement of tax recoverable of HK$587,834.

For the year ended December 31, 2024, we had net cash used in operating activities of HK$4,649,862 (US$598,615) mainly arising from net loss from our operation of HK$4,729,852 (US$608,913) as adjusted for non-cash items and changes in operating assets and liabilities. Adjustments for non-cash items consisted mainly of (i) amortization of right-of-use asset for our Hong Kong office of HK$1,719,081 (US$221,311); (ii) depreciation charge of HK$380,995 (US$49,049); (iii) gain on disposal of long-term investment of HK$1,105,998 (US$142,384); and (iv) interest on lease liabilities of HK$61,232 (US$7,883). Changes in operating assets and liabilities mainly included: (i) decrease in accounts receivable of HK$508,218 (US$65,427) due to decrease in billing made prior to year-end as compared to December 31, 2023; (ii) changes in operating lease liabilities of HK$1,788,518 (US$230,251); (iii) increase in contract liabilities of HK$480,000 (US$61,794) as we entered into new mandates with clients during the year ended December 31, 2024 and received relevant upfront payments; (iv) decrease in accruals and other payables of HK$385,766 (US$49,662); and (v) decrease in deposits and prepayments of HK$210,801 (US$27,138) due to decrease in rental deposit as a result of reduction of monthly rental expenses upon renewal of rental agreement during the year ended December 31, 2024.

Investing activities

Our cash outflow used in investing activities was principally for investment and purchase of property, plant and equipment. Our cash inflow from investing activities was principally from redemption of investment.

For the year ended December 31, 2023, our Group had cash used in investing activities of HK$27,919,010, primarily related to investment of HK$26,110,738 and purchase of motor vehicles