Magic Empire Global Limited Announces First Half 2024 Unaudited Financial Results

/EIN News/ -- HONG KONG, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Magic Empire Global Limited (“MEGL” or the “Company”) (NASDAQ: MEGL), a financial services provider in Hong Kong which principally engages in the provision of corporate finance advisory services, today announced its unaudited financial results for the six months ended June 30, 2024.

Overview:

	●	Revenue increased by approximately 26.9% from approximately HK$6.1 million for the six months ended June 30, 2023 to approximately HK$7.7 million (US$1.0 million) for the six months ended June 30, 2024
	●	Net income decreased by approximately 13.6% from approximately HK$0.7 million for the six months ended June 30, 2023 to approximately HK$0.6 million (US$80,000) for the six months ended June 30, 2024

Six Month Financial Results Ended June 30, 2024

Revenue. Revenue increased by approximately 26.9% from approximately HK$6.1 million for the six months ended June 30, 2023 to approximately HK$7.7 million (US$1.0 million) for the six months ended June 30, 2024. During the six months ended June 30, 2024, the Hong Kong capital markets and the general economic environment in Hong Kong remained difficult. In view of the market conditions of Hong Kong market, we diversified our business to explore projects of listing in other key capital markets such as the United States and we completed two financial advisory projects for clients pursuing listing on Nasdaq and our revenue from financial and independent advisory services significantly increased from approximately HK$0.2 million for the six months ended June 30, 2023 to approximately HK$6.9 million (US$0.9 million) for the six months ended June 30, 2024. Revenue from compliance advisory services decreased from approximately HK$1.4 million for the six months ended June 30, 2023 to approximately HK$0.5 million (US$59,000) for the six months ended June 30, 2024 due to completion of several of our compliance advisory projects during the six months ended June 30, 2024 and the decrease in the number of new IPOs in the Hong Kong market.

Selling, general and administrative expenses. Selling, general and administrative expenses increased by approximately 27.6% from approximately HK$7.2 million for the six months ended June 30, 2023 to approximately HK$9.2 million (US$1.2 million) for the six months ended June 30, 2024, which was mainly due to (i) increase in staff costs resulting from increase in payroll and bonus to our staff; (ii) increase in travelling, accommodation and entertainment expenses due to increase in travelling for business development initiatives; and (iii) increase in depreciation charge.

Other income, net. Other net income increased by approximately 13.7% from approximately HK$1.9 million for the six months ended June 30, 2023 to approximately HK$2.1 million (US$0.3 million) for the six months ended June 30, 2024, which was mainly due to the increase in interest income resulting from the increase in average cash balance.

Income tax expense. Income tax expense was nil for the six months ended June 30, 2024 (six months ended June 30, 2023: nil) as we have available tax losses brought forward.

Net income. Net income decreased by 13.6% from approximately HK$0.7 million for the six months ended June 30, 2023 to approximately HK$0.6 million (US$80,000) for the six months ended June 30, 2024, which was mainly due to the increase in selling, general and administrative expenses, partially offset by increase in revenue.

Basic and diluted EPS. Basic and diluted EPS were approximately HK$0.03 (US$0.004) per ordinary share for the six months ended June 30, 2024, as compared to HK$0.04 per ordinary share for the six months ended June 30, 2023, respectively.

About Magic Empire Global Limited

Magic Empire Global Limited is a financial services provider in Hong Kong which principally engage in the provision of corporate finance advisory services and underwriting services. Its service offerings mainly comprise (i) IPO sponsorship services; (ii) financial advisory and independent financial advisory services; (iii) compliance advisory services; and (iv) underwriting services. For more information, visit the Company’s website at http://www.meglmagic.com.

Exchange Rate Information

This announcement contains translations of certain HK$ amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from HK$ to US$ were made at the rate of HK$7.8083 to US$1.00, the exchange rate on June 28, 2024 set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the HK$ or US$ amounts referred could be converted into US$ or HK$, as the case may be, at any particular rate or at all.

Safe Harbor Statement

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “potential,” “continue” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC, which are available for review at www.sec.gov.

Hong Kong:

Magic Empire Global Limited
Ms. Vivien Tai
Tel: +852 3577 8770
E-mail: meglir@giraffecap.com 

MAGIC EMPIRE GLOBAL LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

		As of
		December 31, 2023				June 30, 2024				June 30, 2024
		HK$				HK$				US$
ASSETS
Current assets:
Cash			92,407,813				92,659,337				11,866,775
Accounts receivable			2,302,436				1,656,000				212,082
Interest receivables			449,550				346,457				44,370
Deposits and prepayments			1,096,249				1,055,783				135,213
Total current assets			96,256,048				95,717,577				12,258,440
Non-current assets:
Property and equipment, net			1,695,006				1,504,509				192,681
Right-of-use assets			1,658,382				710,735				91,023
Long-term investment			38,647,738				38,647,738				4,949,571
Total non-current assets			42,001,126				40,862,982				5,233,275
Total assets			138,257,174				136,580,559				17,491,715
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accruals and other payables			1,079,000				263,003				33,682
Contract liabilities			1,164,000				664,000				85,038
Operating lease liabilities			1,746,317				757,717				97,040
Total current liabilities			3,989,317				1,684,720				215,760
Total liabilities			3,989,317				1,684,720				215,760
COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY
Ordinary shares, US$0.0001 par value, 300,000,000 shares authorized, and 20,256,099 shares outstanding as of December 31, 2023 and June 30, 2024 respectively			15,826				15,826				2,027
Additional paid-in capital			138,662,858				138,662,858				17,758,393
Accumulated deficits			(4,410,827	)			(3,782,845	)			(484,465	)
Total shareholders’ equity			134,267,857				134,895,839				17,275,955
Total liabilities and shareholders’ equity			138,257,174				136,580,559				17,491,715

  

MAGIC EMPIRE GLOBAL LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

		For the six months ended
		June 30, 2023				June 30, 2024				June 30, 2024
		HK$				HK$				US$
REVENUE			6,081,430				7,719,600				988,640
OPERATING EXPENSES:
Selling, general and administrative expenses			(7,230,225	)			(9,224,710	)			(1,181,399	)
Total operating expenses			(7,230,225	)			(9,224,710	)			(1,181,399	)
INCOME FROM OPERATIONS			(1,148,795	)			(1,505,110	)			(192,759	)
OTHER INCOME (EXPENSE)
Interest income			1,957,509				2,166,502				277,461
Other expenses			(81,527	)			(33,410	)			(4,279	)
Total other income, net			1,875,982				2,133,092				273,182
INCOME BEFORE INCOME TAXES			727,187				627,982				80,423
INCOME TAX EXPENSES			-				-				-
NET INCOME			727,187				627,982				80,423
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES
Basic and diluted			20,256,099				20,256,099				20,256,099
EARNINGS PER SHARE
Basic and diluted			0.04				0.03				0.004