Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 31

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 31
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 group did not declare dividends and paid approximately HKD5.9 million (US$0.7 million). During the year
ended June 30, 2024, our group declared dividends of approximately HKD9.4 million (US$1.2 million) and paid approximately HKD9.5 million
(US$1.2 million). During the year ended June 30, 2023, our group declared dividends of approximately HKD13.8 million (US$1.8 million)
and paid approximately HKD9.9 million (US$1.3 million). Any historical dividend payment should not be regarded as an indication of future
dividend policy or our payment of dividends in the future.

We are exposed to the credit risk of accounts
receivable from customers.

We are exposed to credit
risk in relation to our accounts receivable from customers. Our accounts receivable amounted to approximately HKD3.6 million and HKD2.6
million (US$0.5 million and US$0.3 million) as of June 30, 2025 and 2024, respectively. Our accounts receivable turnover days were approximately
41 days and 29 days for the years ended June 30, 2025 and 2024, respectively. Our business operations and cash flow are subject to the
risk of delay in settlement from our customers. Our customers’ settlement date may be affected by their internal policies and we
cannot assure you that our customers will settle in a timely manner. Our effort in strengthening our accounts receivable collection and
management may not be effective and we cannot assure you that we will be able to fully recover the outstanding amounts due from our customers,
if at all, or that our customers will settle the amounts in a timely manner.

Our businesses collect, host, store, transfer,
process, disclose, use, secure and retain and dispose of personal and business information, and collect, hold and transmit client funds,
and a security or privacy breach may damage or disrupt our businesses, result in the disclosure of confidential information, damage our
reputation, increase our costs, cause losses and materially adversely affect our results of operations.

In connection with our business,
we collect, host, store, transfer, process, disclose, use, secure and retain and dispose of large amounts of personal and business information
about our clients, employees of our clients, our vendors and our employees, contractors and temporary staff, including payroll information,
health care information, personal and business financial