Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 133

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4A
Chunk 133
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the Subsidiaries (together, the “ Group” or the “ Company”), is engaged in providing payroll outsourcing services
and employment services. The Operating Entities in our Group have headquarters in Hong Kong, China, Taiwan, and Macau. Majority of the
Group’s business activities are carried out by Galaxy Payroll (HK).

Melkweg BVI acquired all
the equity interest of the Subsidiaries from the equity holders via certain share exchange agreement on December 12, 2019.

Melkweg Cayman acquired all
the equity interest of Melkweg BVI from the shareholder via share exchange agreement on January 17, 2020. Galaxy Payroll BVI then acquired
all the equity interests of Melkweg Cayman via certain share exchange agreement on August 26, 2021. Upon completion of the exchange, Melkweg
Cayman was 100% owned by the Company, and the restructuring of the Company was then completed. Galaxy Payroll BVI, Melkweg Cayman and
Melkweg BVI and all subsidiaries are under common control which results in the consolidation of Melkweg Cayman and Galaxy Payroll BVI
at carrying value. The consolidated financial statements are prepared on the basis as if the reorganization became effective as of the
beginning of the first period presented in the accompanying consolidated financial statements.

Key Factors that Affect Results of Operations

Galaxy Payroll Group Limited believes the key factors affecting its financial condition and results of operations include the following:

Operating in a highly competitive market

Some of our competitors may
have advantages over our Group, such as (i) wider geographical coverage, services offerings, technology and security level, enabling them
to enjoy higher economies of scale; (ii) better industry reputation and image; and (iii) higher capability in providing value-added services
including consulting services and system maintenance and upgrade which are preferable to end-users.

There is no assurance that
our competitors will not develop the expertise, experience and resources necessary to provide services that are better in quality and/or
more competitive in pricing compared to our services. Failure to maintain or enhance our competitiveness within the industry or maintain
our customer base may adversely affect our financial performance and profitability.

Changes in PRC and Hong Kong Regulatory Environment may impact our
business and results of operations

According to our Hong Kong
Legal Advisers, we are not required to obtain any license from the relevant government authorities for the provision of payroll outsourcing
services in Hong Kong;