Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 71

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 71
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$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 operations and the net proceeds from the IPO. The following table sets
forth a summary of our cash flows information for the years indicated:

                                                       For                                                                                                                  
                                                       the years ended December 31,                                                                                         
                                                       2022                                               2023                       2024                                   
                                                       HK$                                                HK$                        HK$                                    
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net                                                                                       (910,364                     94,490                 (4,649,862        (598,615  
  Net                                                                                    (14,596,700                (27,919,010                 39,753,736       5,117,826  
  Net                                                                                    125,634,459                 (1,581,900                          -               -  
  Net                                                                                    110,127,395                (29,406,420                 35,103,874       4,519,211  
  Cash                                                                                    11,686,838                121,814,233                 92,407,813      11,896,419  
  Cash                                                                                   121,814,233                 92,407,813                127,511,687      16,415,630  

Operating
activities

Our
cash inflow from operating activities was principally from the receipt of revenue. Our cash outflow used in operating activities was
principally for payment of staff cost and operating expenses.

  48  

For
the year ended December 31, 2022, we had net cash