Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 68

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 68
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 December 31, 2023, primarily due to the increase in our staff costs and travelling, accommodation and
entertainment expenses.

Our
staff costs mainly represented salaries, bonuses and pension contribution of our directors and employees. Our staff costs moderately
increased by HK$345,364, or 3.7% from HK$9,370,621 for the year ended December 31, 2022 to HK$9,715,985 for the year ended
December 31, 2023, mainly due to a general increase in wages of our staff.

Our
amortization of right-of-use assets mainly represented our operating lease of our Hong Kong office. Our amortization of right-of-use
assets remained relatively stable at HK$1,895,294 for the year ended December 31, 2023, compared to HK$1,895,294 for the
year ended December 31, 2022.

Our
professional fee mainly represented audit fees and fees to our legal counsels.

Our
depreciation charge mainly represented depreciation charge of our renovation of our Hong Kong office and motor vehicles. Our depreciation
charge increased by approximately HK$147,283, or 235.0% from HK$62,683 for the year ended December 31, 2022 to HK$209,966 for the year ended December 31, 2023 due to the addition of motor vehicles during the year ended December 31, 2023.

Our
travelling, accommodation and entertainment expenses increased by HK$728,159, or 261.4%, from HK$278,587 for the year ended December
31, 2022 to HK$1,006,746 for the year ended December 31, 2023 due to increased business development initiatives during the
year ended December 31, 2023.

Other
income/(expense), net

Other
income significantly increased by HK$1,286,766, or 123.5%, from HK$1,042,220 for the year ended December 31, 2022 to HK$2,328,986 for the year ended December 31, 2023, primarily due to the increase in bank interest income arising from increase in bank interest rates
and partially offset by the loss due to market of a derivative during the year ended December 31, 2023.

Income
tax

We
are subject to income tax on an entity basis on profit arising in or derived from