Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 23

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 23
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 by such shareholders may be subject to PRC tax at a rate of 20% (and such PRC tax may be withheld at source in the case of dividends).
Any PRC income tax liability may be reduced under applicable tax treaties. However, it is unclear whether in practice our non-PRC shareholders
would be able to obtain the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated
as a PRC resident enterprise. Any such tax may reduce the returns on your investment in our Ordinary Shares.

Risks Related to Our Business and Industry

We have a concentrated customer base and
any decrease in the number of projects with our major customers would adversely affect our operations and financial results.

For the years ended June
30, 2025, 2024 and 2023, a significant portion of our revenue was derived from a small number of customers. Our five largest customers
accounted for approximately HKD18.3 million (US$2.3 million), HKD22.0 million (US$2.8 million), and HKD22.5 million (US$2.9 million),
representing approximately 66.7%, 73.0% and 71.4% of our revenue for the same periods, respectively.

There is no assurance that
our major customers will continue to engage us for the provision of our payroll outsourcing services and employment services and/or increase
their demand for our services in the future. If there is any significant decrease in the number and scale of engagements awarded by such
customers, our financial condition and operating results would be materially and adversely affected. Furthermore, in the event that our
major customers experience any liquidity problems, the business, financial position and prospects of our Group may be materially and adversely
affected. We cannot guarantee that we will be able to diversify our customer base by obtaining a significant number of new projects from
our existing and potential customers.

High customer concentration exposes
us to all of the risks faced by our major customers and may subject us to significant fluctuations or declines in revenues.

Our customers include both
enterprises and individuals. A limited number of our major customers, however, have contributed a significant portion of our revenues
in the past. As of June 30, 2025, three customers accounted for 50.6%, 16.0% and 15.9%, respectively, of the Group’s total accounts
receivable. As of June 30, 2024