Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 242

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 242
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 activities.

F-11

Related Parties

The Group accounts for related
party transactions in accordance with FASB Accounting Standards Codification (ASC) Topic 850 (Related Party Disclosures). A party is considered
to be related to the Group if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is
under common control with the Group. Related parties also include principal owners of the Group, its management, members of the immediate
families of principal owners of the Group and its management and other parties with which the Group may deal if one party controls or
can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be
prevented from fully pursuing its own separate interests.

Cash

Cash primarily consists of bank deposits with original maturities of
three months or less, which are unrestricted as to withdrawal and use. Cash also consists of funds generated from the Group’s operating
activities which were held at the third-party platform fund accounts which are unrestricted as to immediate use or withdraw. The Group
maintains its bank accounts in the Hong Kong SAR, China, Macau and Taiwan.

Deposits accounts denominated
in Hong Kong Dollars, Renminbi or any other currencies at the banks and financial institutions who are the members of Deposit Protection
Scheme will be covered up to a limit of HKD500,000(US$63,695) per depositor per scheme member by Hong Kong Deposit Protection Board in
an event of bank failure. As of June 30, 2025 and 2024, the cash was HKD32,188,711(US$4,100,525) and HKD10,855,128, respectively. Majority
of cash is held in the financial institutions in Hong Kong which are insured by Deposit Protection Scheme. The Group’s cash deposits
held in financial institutions located in China, Macau and Taiwan are insured with the local regulation mandated on obligatory insurance
of bank accounts. The Group has not experienced any losses in bank accounts and believe its credit risk is not significant.

Restricted cash

Restricted cash represents
the deposit pledged to a bank to secure banking facilities granted to the Group. As of June 30, 2023, restricted cash carried at an interest
rate of from0.1% to4.6% per annum respectively.

Accounts receivable, net

Accounts receivable represents
the service fees earned from the clients but have not yet collected. Accounts