Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 155

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4A
Chunk 155
---
30, 2024 to HKD17,600,113 (US$2,242,081)
for the year ended June 30, 2025. The decrease in overall revenue was primarily driven by a decline in total revenue from the PRC,
Taiwan, and India, amounting to HKD425,645 (US$54,223). In contrast, aggregate revenue from Hong Kong and Macau increased by HKD429,925
(US$54,768). Although there was an increase of 3,006 payroll transactions in the PRC (from 97,005 to 100,011), the significant reduction
in revenue per payroll transaction in the PRC (from HKD167 to HKD156) has notably affected the revenue generated in that region. Conversely,
revenue per payroll transaction in non-PRC regions increased significantly (from HKD586 to HKD689). The decline in the PRC is attributed
to intensified market competition and evolving global economic conditions. However, the reduction in revenue from the PRC was largely
offset by growth in non-PRC regions, resulting in no material impact on the overall revenue from our payroll outsourcing services for
the year.

Cost of revenues

Cost of revenues included
in-country partner costs, net exchange difference, employee compensation, related employee benefits and director’s remuneration.
Employee compensation and related payroll benefits consisted of staff salaries, employer’s contribution to the pension scheme, staff
training, staff allowance and recruitment fee. For the year ended June 30, 2025, cost of revenues was HKD15,748,088 (US$2,006,151), increased
by HKD1,796,419, 12.8% from HKD13,951,669 in the same period in 2024. The percentage of cost of revenues to revenue increased from 46.3%
for the year ended June 30, 2024 to 57.4% for the year ended June 30, 2025. Such increase is driven by the additional year-end bonus to
employees, a decrease in revenue and yearly salary increments during the year.

Operating Expenses

The Group’s total operating
expenses increased by HKD30,290,826 from HKD9,148,802 in the year ended June 30, 2024 to HKD39,439,628 (US$5,024,220) in the year ended
June 30, 2025, driven by