Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 73

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 5
Chunk 73
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 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$1,719,081 (US$221,311);
(ii) depreciation charge of HK$380,995 (US$49,049); (iii) gain on disposal of long-term investment of HK$1,105,998 (US$142,384); and
(iv) interest on lease liabilities of HK$61,232 (US$7,883). Changes in operating assets and liabilities mainly included: (i) decrease
in accounts receivable of HK$508,218 (US$65,427) due to decrease in billing made prior to year-end as compared to December 31, 2023;
(ii) changes in operating lease liabilities of HK$1,788,518 (US$230,251); (iii) increase in contract liabilities of HK$480,000 (US$61,794)
as we entered into new mandates with clients during the year ended December 31, 2024 and received relevant upfront payments; (iv) decrease
in accruals and other payables of HK$385,766 (US$49,662); and (v) decrease in deposits and prepayments of HK$210,801 (US$27,138) due
to decrease in rental deposit as a result of reduction of monthly rental expenses upon renewal of rental agreement during the year ended
December 31, 2024.

Investing
activities

Our
cash outflow used in investing activities was principally for investment and purchase of property, plant and equipment. Our cash inflow
from investing activities was principally from redemption of investment.

For
the year ended December 31, 2022, our Group had cash used in investing activities of HK$14,596,700, primarily related to an investment
of HK$14,500,000.

For
the year ended December 31, 2023, our Group had cash used in investing activities of HK$27,919,010, primarily related to investment of
HK$26,110,738 and purchase of motor vehicles of HK$1,904,972.

For
the year ended December 31, 2024, our Group had cash from investing activities of HK$39,753,736 (US$5,117,826), primarily related to
redemption of long-term investments of HK