Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 70

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 70
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                  3,541,670                   455,948  
  Net                                           92,266,731                127,099,288                16,362,538  

Accounts
Receivable

Our
accounts receivable represented receivables from clients of our corporate finance advisory services. Accounts receivable from corporate
finance advisory services included service fees billed but not yet settled. We do not grant credit terms to our clients. We issue an
invoice to our clients of corporate finance advisory services after a milestone specified under our mandate is achieved or upon completion
of the transaction.

Our
accounts receivable balance decreased by HK$508,218, or 22.1% from HK$2,302,436 as of December 31, 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.

  47  

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