Company: MEGL
Filing Date: 2025-06-09
Form Type: F-1/A
Source: 0001641172-25-014301
Chunk: 92

Company: Magic Empire Global Ltd
Filing Date: 2025-06-09
Form: F-1/A
Chunk 92
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, 2023 to HK$1,794,218 (US$230,984) as of December 31, 2024. The decrease was mainly due to billing made prior to year-end of 2023 remain unsettled while billing made prior to year-end of 2024 decreased.

An impairment analysis is performed on a regular basis. During the years ended December 31, 2023 and 2024, we had not made any provision for credit losses in relation to our accounts receivable.

Deposits and prepayments

Our deposits and prepayments mainly represented rental deposit and prepayment of our office premises and other utility deposits. The decrease in deposits and prepayments from HK$1,096,249 as of December 31, 2023 to HK$885,448 (US$113,991) as of December 31, 2024 was mainly due to the decrease in rental deposit of our office premises as a result of reduction in monthly rental upon renewal.

Accruals and other payables

Our accruals and other payables mainly represented accrued operating expenses.

Contract liabilities

Our contract liabilities represented the upfront payments received upon signing of the mandate for our clients in relation to our IPO sponsorship services, financial advisory service and independent financial advisory services and advances from clients related to our compliance advisory services. These payments are non-refundable and are recognized as revenue when our performance obligation is satisfied. Our contract liabilities increased by HK$480,000, or 41.2%, from HK$1,164,000 as of December 31, 2023 to HK$1,644,000 (US$211,645) as of December 31, 2024 as we entered into new mandates with clients during the year ended December 31, 2024 and received relevant upfront payments.

Operating lease liabilities

Our operating lease liabilities represented the current portion of the operating lease of our Hong Kong office and were reduced as lease payments were made. Our operating lease liabilities decreased from HK$1,746,317 as of December 31, 2023 to HK$1,204,436 (US$155,057) as of December 31, 2024 mainly due to the decrease in monthly rental expenses upon renewal of rental agreement during the year ended December 31, 2024.

CASH FLOWS

Our use of cash primarily related to operating activities, capital expenditure and payment of dividends. We have historically financed our operations primarily through our cash flow generated from our