Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 72

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 72
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 used in operating activities of HK$910,364 mainly arising from loss from our operation
of HK$3,842,278 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$1,895,294 (ii) depreciation charge of HK$62,683; (iii)
deferred tax expense of HK$391,820; and (iv) interest on lease liabilities of HK$232,002. Changes in operating assets and liabilities
mainly included: (i) decrease in accounts receivable of HK$3,192,306 due to early settlement from our clients; (ii) changes in operating
lease liabilities of HK$2,044,020; (iii) increase in accruals and other payables of HK$741,339 due to accrued audit fees; (iv) increase
in tax recoverable of HK$587,834; and (v) increase in interest receivables of HK$515,287.

For
the year ended December 31, 2023, we had net cash provided by operating activities of HK$94,490 mainly arising from net loss from our operation of HK$483,812 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$1,895,294; (ii) depreciation charge of HK$209,966; and (iii) interest on lease liabilities of HK$139,296.
Changes in operating assets and liabilities mainly included: (i) increase in accounts receivable of HK$314,033 due to billing made prior
to year-end remained unsettled; (ii) changes in operating lease liabilities of HK$2,044,020; (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