Company: MEGL
Filing Date: 2025-06-09
Form Type: F-1/A
Source: 0001641172-25-014301
Chunk: 172

Company: Magic Empire Global Ltd
Filing Date: 2025-06-09
Form: F-1/A
Chunk 172
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| F-13 |

<div align='center'>MAGIC EMPIRE GLOBAL LIMITED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

| 2. | SUMMARY                                    
 OF SIGNIFICANT ACCOUNTING POLICIES (cont.) |

|                   |     |          |            |     | Quoted  |   |     | Significant |   |     | Significant  |            |
|                   |     |          |            |     | Prices  |   |     | Other       |   |     | Other        |            |
|                   |     |          |            |     | In      
 Active  |   |     | Observable  |   |     | Unobservable |            |
|                   |     | December 
      31, |            |     | Markets |   |     | Inputs      |   |     | Inputs       |            |
|                   |     |     2023 |            |     | -Level  
 1       |   |     | -Level      
 2           |   |     | -Level       
 3            |            |
|                   |     |      HK$ |            |     | HK$     |   |     | HK$         |   |     | HK$          |            |
| Assets:           
 -                 |     |          |            |     |         |   |     |             |   |     |              |            |
| Non-marketable    
 equity securities |     |          | 38,647,738 |     |         | — |     |             | — |     |              | 38,647,738 |

The Group’s non-marketable equity securities are investments in privately held companies, which are without readily determinable market values and are classified as Level 3, due to the absence of quoted market prices, the inherent lack of liquidity and the fact that inputs used to measure fair value are unobservable and require management’s judgment.

Fair value estimates are made at a specific point in time based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Revenue recognition

The Group applied ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”) for all periods presented.

The five-step model defined by ASC 606 requires the Group to (1) identify its contracts with customers, (2) identify its performance obligations