Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 219

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 11
Chunk 219
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Item
11. Quantitative and Qualitative Disclosures About Market Risk.

Credit
risk

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.

Interest
rate risk

The Group’s exposure
on fair value interest rate risk mainly arises from its fixed deposits with banks. It also has exposure on cash flow interest rate risk
which is mainly arising from its deposits with banks.

Foreign
currency risk

We
are exposed to foreign currency risk primarily through service income or expenses that are denominated in a currency other than the functional
currency of the operations to which they relate. The currencies giving rise to this risk are primarily US$. As HKD is currently pegged
to US$, our exposure to foreign exchange fluctuations is minimal.

Liquidity risk

Our approach to managing
liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to our reputation. Typically, we ensure that
it has sufficient cash on demand to meet expected operational expenses for a period of 180 days, including the servicing of financial
obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Item
12. Description of Securities Other than Equity Securities.