Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 238

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 238
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 have been satisfied. Net income (loss) is not allocated to other participating securities
if based on their contractual terms they are not obligated to share the income (loss).

Diluted earnings (losses)
per share is calculated by dividing net income (loss) attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary
equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year.
Ordinary equivalent shares consist of ordinary shares issuable upon the exercise of share options using the treasury stock method. Ordinary
equivalent shares are not included in the denominator of the diluted earnings (losses) per share calculation when inclusion of such share
would be anti-dilutive.

F-8

Foreign currency translation and transaction

The Group uses Hong Kong Dollar
(“ HKD”) as its reporting currency. The functional currency of Galaxy Payroll BVI is United States Dollar (“ US$”)
and its subsidiaries which are incorporated in Hong Kong, Cayman, Macau, Taiwan and China is HKD, USD, MOP, NTD and RMB, respectively,
which are their respective local currency based on the criteria of ASC 830, “ Foreign Currency Matters”.

In the consolidated financial
statements of the Group, transactions in currencies other than the functional currency are measured and recorded in the functional currency
using the exchange rate in effect at the date of the transaction. At the balance sheet date, monetary assets and liabilities that are
denominated in currencies other than the functional currency are translated into the functional currency using the exchange rate at the
balance sheet date. All gains and losses arising from foreign currency transactions are recorded in the income statements during the year
in which they occur.

Convenience translation

Translations of balances
in the consolidated balance sheets, consolidated statements of income/(loss) and comprehensive income/(loss), consolidated statements
of changes in shareholders’ equity and consolidated statements of cash flows from HKD into US$ as of June 30, 2025 are solely for
the convenience of the readers and are calculated at the rate of US$1.00=7.8499, representing the exchange rate set forth in the H.10
statistical release of the Federal Reserve Board on June 30, 2025. No representation is made that the HKD amounts could have been, or
could be, converted, realized or settled into US$ at such rate, or at any other rate.

Fair value measurement

The accounting standard regarding