Company: MEGL
Filing Date: 2025-06-27
Form Type: F-1/A
Source: 0001641172-25-016831
Chunk: 179

Company: Magic Empire Global Ltd
Filing Date: 2025-06-27
Form: F-1/A
Chunk 179
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 or relative, shareholder, or a related corporation.

Segment reporting

To adopt the new ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures, which requires that an entity report segment information in accordance with Topic 280, Segment Reporting. The amendment in the ASU is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023.

The Group operates and manages its business as a single segment, in accordance with ASC 280, Segment Reporting. The Group’s chief operating decision maker (“CODM”) is the Chairman. The Group’s CODM assess the Group’s performance and results of operations on a consolidated basis. The Group generates substantially all of its revenues from clients in Hong Kong. Accordingly, no geographical segments are presented. Substantially all of the Group’s long-lived assets are located in Hong Kong.

The Group’s CODM assesses performance for the segment and decides how to allocate resources by regularly reviewing the segment net income (loss) that also is reported as consolidated net loss on the statement of operations, after taking into account the Group’s strategic priorities, its cash balance, and its expected use of cash. Further, the CODM reviews and utilizes functional expenses (i.e., general and administrative expenses) at the consolidated level to manage the Group’s operations. The following table presents the significant revenue and expense categories in the Group’s single operating segment:

|                                     |     |             For 
 the years ended 
    December 31, |            |   |     |      |             |   |     |      |            |   |
|                                     |     |            2023 |            |   |     | 2024 |             |   |     | 2024 |            |   |
|                                     |     |             HK$ |            |   |     |  HK$ |             |   |     |  US$ |            |   |
| Revenue from external customers     |     |                 | 13,792,030 |   |     |      |  12,784,230 |   |     |      |  1,645,819 |   |
| Staff costs                         |     |                 | (9,715,985 | ) |     |      | (15,221,050 | ) |     |      | (1,959,531 | ) |
| General and administrative expenses