Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 249

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 249
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 that
potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents and account receivable. The
Group places its cash and cash equivalents with financial institutions with high-credit ratings and quality.

Accounts receivable primarily
comprise of amounts receivable from the service clients. Other receivables consist of out-of-pocket payments to be receivable from the
service clients. To reduce credit risk, the Group performs on-going credit evaluations of the financial condition of these service clients.
The Group establishes a provision for credit losses based upon estimates, factors surrounding the credit risk of specific service clients
and other information.

Concentration of customers

As of June 30, 2025, three customers accounted for50.6%,16.0% and15.9%, respectively, of the Group’s total accounts receivable. As of June 30, 2024, four customers accounted for29.0%,23.5%,21.0%
and18.5%, respectively, of the Group’s total accounts receivable.

For the year ended June 30,
2025, three major customers accounted for23.6%,18.7% and13.2%, respectively, of the Group’s total revenues. For the year ended
June 30, 2024, three major customers accounted for23.3%,22.1% and12.8%, respectively, of the Group’s total revenues. For the
year ended June 30, 2023, three major customers accounted for36.4%,14.7% and13.4%, respectively, of the Group’s total revenues.

Concentration of vendors

As of June 30, 2025 and 2024,
one vendor accounted for100% of the Group’s total account payable.

For the year ended June 30,
2025, three major vendors accounted for30.3%,23.9% and12.0% of the Group’s total in-country partner costs, respectively. For
the year ended June 30, 2024, three major vendors accounted for34.4%,20.7% and10.4% of the Group’s total in-country partner costs,
respectively. For the year ended June 30, 2023, two major vendors accounted for37.9% and27.7% of the Group’s total in-country
partner costs, respectively.

Interest rate risk

The Group’s exposure
on fair value interest rate risk mainly arises from its fixed deposits with banks. It