Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 145

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4A
Chunk 145
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 Macau left during the year and then a decrease
in revenue of HKD222,804 (US$28,534). Therefore, the increase in revenue generated in PRC, Taiwan and India offsetting the decrease in
revenue generated in Macau resulted in the increase in the amount in respect of overall revenue generated in payroll outsourcing services
business.

Cost of revenues

Cost of revenues included
in-country partner costs, net exchange difference, employee compensation, related employee benefits and director’s remuneration.
Employee compensation and related payroll benefits consisted of staff salaries, employer’s contribution to pension scheme, staff
training, staff allowance and recruitment fee. For the year ended June 30, 2024, cost of revenues was HKD13,951,669 (US$1,786,774), increased
by HKD951,997 from HKD12,999,672 for the year ended June 30, 2023. The percentage of cost of revenues to the revenue was increased from
41% for the year ended June 30, 2023 to 46% for the year ended June 30, 2024. Such increase is driven by the net exchange difference,
the additional year-end bonus to employees and yearly salary increments during the year.

Operating Expenses

The Group’s total operating
expenses increased by HKD1,032,056 to HKD9,148,802 (US$1,171,677) in the year ended June 30, 2024 from HKD8,116,746 in the year ended
June 30, 2023, driven by the increase in the provision for credit losses of HKD162,955 and the increase in selling, general and administrative
expenses of HKD869,101.

Selling, general and administrative expenses

Selling, general and administrative
expenses consisted primarily of bank charge, building management fee, depreciation, insurance, Internet and IT service fee, legal and
professional fees, meal and entertainment, office premises expenses, travelling, staff cost and others.

The Group’s major selling,
general and administrative expenses were comprised of the following items during the periods indicated:

                                   For the years ended June 30                                                                                 
                                   2023                                            2024                                                        
                                   HKD                                             HKD                                                         
 ───────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Bank Charge                      $                                  217,214      $           301,906         38,665