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

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 24
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, four customers accounted for 29.0%, 23.5%, 21.0% and 18.5%, respectively, of the Group’s total
accounts receivable. For the year ended June 30, 2025, three major customers accounted for 23.6%, 18.7% and 13.2%, respectively, of the
Group’s total revenues. For the year ended June 30, 2024, three major customers accounted for 23.3%, 22.1% and 12.8% of the Group’s
total revenues. For the year ended June 30, 2023, our top three major customers accounted for 36.4%, 14.7% and 13.4%, respectively, of
the Group’s total revenues. Although we continually seek to diversify our customer base, we cannot assure you that the proportion
of the revenue contribution from these customers to our total revenues will decrease in the near future. Dependence on a limited number
of major customers will expose us to the risks of substantial losses and extend the turnover days if any of them reduces or even ceases
business collaborations with us.

We need to maintain stable relationship
with our limited number of suppliers, otherwise our business may be adversely affected.

A limited number of our major
vendors, however, have contributed a significant portion of our supplies in the past. As of June 30, 2025 and 2024, our top vendor accounted
for 100% of the Group’s total account payable. For the years ended June 30, 2025, 2024 and 2023, our top vendor accounted for 30.3%,
34.4% and 37.9% of the Group’s total in-country partner costs, respectively. We will actively expand our suppliers base, but for
now we still depend on a limited number of major vendors and will expose us to the risks of substantial losses and extend the turnover
days if any of them reduces or even ceases business collaborations with us.

Our IT system may not perform as anticipated
and is vulnerable to damage and interruption, which may lead to leakage of personal data of the employees of our end-users and our seconded
employees.

The efficient operation of
our business is dependent on our IT system, which is directly related to the stability and performance of our business operation.

We have in our possession
a substantial amount of personal data related to the employees of our end users and