Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 84

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 84
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 invoice.                                                                          
  Our major obligations:      Our major obligations under the agreements for employment services may include:                                                                                                                       
                              (i) employing candidates selected by end-users and second the seconded employees to the end-users;                                                                                                    
                              (ii) handling the seconded employees’ payroll; and                                                                                                                                                    
                              (iii) making annual filings and payments for tax and social security.                                                                                                                                 

The seconded employee’s
remuneration package may include the monthly salary, bonus, commission, insurance, social security and housing provident funds.

If our channel customer and
end-user confirm the employment terms and the final candidate accepts the offer, we will prepare and sign the employment contract with
such candidate. Under the employment contract we entered into with our seconded employee, we are entitled to terminate the employment
by giving one-month notice, payment in lieu of notice, by mutual agreement or in accordance with the relevant laws. The deposit paid to
us can fully cover our termination cost. In this way, we would be able to provide flexible staffing solutions to our end-users for them
to manage their staffing levels according to their business needs, while at the same time limit our potential financial exposures to our
seconded employees should our end-users scale down their business or terminate their relationships with us.

During the employment period,
the seconded employee remains as our Group’s or our in-country partner’s employee but works under the supervision or assignment
of our end-user through secondment.

PRICING POLICY

With respect to our payroll
outsourcing services, the pricing of our services was determined based on (i) the prevailing market rates charged by market players; (ii)
the expected transaction volume of our customers; and (iii) the business relationships with our customers. As for our employment services,
we generally negotiate the pricing with our customers on a case-by-case basis taking into consideration of various factors including (i)
the prevailing market rates charged by market players; (ii) the expected salary level of the seconded employee; (iii) the amount of administrative
work required; and (iv) the business relationships with our customers. Our management team considers that our service fees charged is
in line with the industry norm in the payroll outsourcing service industry and employment service industry.

SALES AND MARKETING

During the years ended June
30, 2025, 2024 and 2023, our revenue was mainly derived from channel customers, and our business opportunities mainly arose from our existing
channel customers’ referral. When potential