Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 28

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 28
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 of our revenue,
respectively. We entered into master service agreements with more than half of our channel customers for the provision of our payroll
outsourcing services and employment services. Such agreements do not impose any guaranteed and/or minimum number of employees of our end-users
for our payroll outsourcing services, or the minimum number of employees to be seconded by us. In the event, among others, that (i) our
Group becomes the subject of a resolution or petition of winding-up; (ii) we are unable or are deemed unable or admit inability to pay
our debts when they fall due; or (iii) any of our executive Directors is being charged or convicted of any criminal offence, the agreements
may be terminated without the need of any notice. As such, our channel customers may terminate their master service agreements with immediate
effect which will affect the number of end-users engaging us for our payroll outsourcing services and/or employment services, through
our channel customers. We may consequently experience unexpected fluctuation of our revenue, and our business and results of operations
may be materially and adversely affected.

The trend of our historical financial information
may not be indicative of our financial performance in the future.

Our revenue decreased by
approximately -9% to approximately HKD27.4 million (US$3.5 million) for the year ended June 30, 2025 from approximately HKD30.1 million
(US$3.9 million) for the year ended June 30, 2024. Our net (loss) income decreased by approximately -601% to approximately HKD(27.6) million
(approximately US$(3.5 million) for the year ended June 30, 2025 from approximately HKD5.5 million (approximately US$0.7 million)
for the year ended June 30, 2024, which was primarily attributable to an increase in cost of revenues by HKD1.8 million (US$0.2 million),
or 13%, an increase in research and development expenses by HKD19 million (US$2.4 million), and an increase in selling, general and administration
expenses by HKD11.8 million (US$1.5 million), or 131%.

Our revenue may decline for
an array of reasons, including failure to retain our existing customers and/or attract new customers, intensified market competition,
slowdown in the growth of the overall payroll outsourcing service market and the employment service market and any unfavorable changes
in government policies