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

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 25
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 our seconded employees. We are obliged to keep all
the personal data in our possession in such manner required by the laws and regulations relating to personal data protection implemented
in the PRC, Hong Kong, Japan, Taiwan, Macau, Australia and other Asian countries. If our IT system experiences any functional problems
or there is any failure of our IT system due to power outages, hacker attacks, computer viruses, security breaches and errors in usage
by our internal employees causing any breach of confidentiality by us or any failure to comply with the protection, collection, use and
disclosure of personal data as prescribed under the relevant laws and regulations, resulting in personal data related to the employees
of the end-users of our payroll outsourcing services or our seconded employees being leaked to or obtained by third parties, our reputation
will be in jeopardy which could lead to loss of our major customers. The employees of the end-users of our payroll outsourcing services
or our seconded employees may also take legal actions against us for damages and/or compensation for the loss that may have arisen or
been incurred therefrom, in addition to the penalties prescribed under the relevant laws and regulations in the PRC, Hong Kong, Japan,
Taiwan, Macau, Australia and other Asian countries we are subject to.

The internal control procedures
we have implemented to safeguard the security and confidentiality of our customer database may not effectively prevent leakage of personal
data or unauthorized access to our customer database under all circumstances. If such incident happens, we may be subject to investigation,
litigation, arbitration and other forms of legal proceedings and/or dispute for breach of personal data privacy laws and regulations in
the PRC, Hong Kong, Japan, Taiwan, Macau, Australia and other Asian countries, and our management team will have to divert substantial
time, effort and resources to handle the legal procedures. In the event that such breach has occurred, our business operation, financial
results and reputation would be adversely affected.

The Major In-country Partner accounted
for over 30%, 34% and 35% of our in-country partner costs throughout the year ended June 30, 2025, 2024 and 2023, respectively. Any deterioration,
termination of relationship or change of service offerings from The Major In-country Partner may adversely affect our business and results
of operations.

We have entered into a human
resources outsourcing service agreement with the Major In-country Partner for the provision of payroll outsourcing services and employment
services by the Major In-country Partner to us in the