Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 237

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 237
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                                                                                      ● Incorporated on October 24, 2017                                                                                                                                                                    
  Galaxy Corporate Management Consultancy (Shenzhen) Limited (“ Galaxy HR (SZ)”)      ● Located in People’s Republic of China (“ PRC”)      100% owned by Galaxy Payroll (China)                                           Provision of payroll outsourcing and employment services         
                                                                                      ● Incorporated on February 21, 2013                                                                                                                                                                   
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F-7

Note 2 - Summary of significant accounting
policies

Basis of presentation

The accompanying consolidated
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“ U. S.
GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“ SEC”).

Principles of consolidation

The consolidated financial
statements include the accounts of the Group and its subsidiaries. All inter-Group transactions and balances are eliminated upon consolidation.

Use of estimates and assumptions

The preparation of consolidated
financial statements in conformity with U. S. GAAP requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities including provision for credit losses, and disclosures of contingent assets and liabilities as of the date of
the consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could
differ from these estimates. Significant accounting estimates reflected in the Group’s consolidated financial statements include
the Group’s ability to realize deferred tax assets and the estimates of provision for credit losses.

Earnings (Losses) per share

Basic earnings (losses) per
share is computed by dividing net income (loss) attributable to ordinary shareholders, taking into consideration the deemed dividends
to preferred shareholders (if any), by the weighted average number of ordinary shares outstanding during the year using the two-class
method. Under the two-class method, net income (loss) is allocated between ordinary shares and other participating securities based on
their participating rights. Class A ordinary share and Class B ordinary share have the same rights in dividend. Therefore, basic and diluted
earnings (losses) per share are the same for both classes of ordinary shares. Shares issuable for little to no consideration upon the
satisfaction of certain conditions are considered as outstanding shares and included in the computation of basic earnings (losses) per
share as of the date that all necessary conditions