Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 114

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 114
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 Civil Code
of the PRC (the “ Civil Code”) promulgated by the National People’s Congress (the “ NPC”) on May 28, 2020
and came into force on January 1, 2021, a human resources service contract is classified as a mandate contract under which a principal
and an agent agree that the agent shall handle the principal’s affairs. The principal may provide the agent with specific authority
to handle one matter or a number of matters on its behalf, or the principal may provide the agent with general authority to handle all
of its affairs. Pursuant to the Civil Code, the principal shall pay in advance any expenses associated with the handling of those affairs
which have been delegated. When the agent has completed its handling of the delegated affairs, the principal shall reimburse the agent
for any amount of associated expenses paid by the agent plus interests. Where, due to circumstances for which the agent cannot be held
responsible, the mandate contract is rescinded or the handling of the delegated affairs cannot be completed, the principal shall pay
a corresponding amount of compensation to the agent. Where the parties agree otherwise, their agreement shall apply. Where the agent
sustains losses in the course of handling delegated affairs due to circumstances for which the agent cannot be held responsible, the
agent may demand the principal to provide compensation for the said losses. With respect to non-gratuitous mandate contracts, the principal
may demand compensation for any losses sustained due to the error of the agent. Some of our contracts with customers regarding provision
of human resources services governed by the PRC law are mandate contracts under the Civil Code.

Pursuant to the Implementing
Measures for Labor Dispatch Administrative Licensing, which was promulgated by MOHRSS on June 20, 2013 and became effective on July 1,
2013, to engage in labor dispatch business, an applicant shall apply for administrative licensing in accordance with the law to the competent
administrative department of human resources and social security at its domicile. No entity and individual may engage in labor dispatch
business without being licensed. Where the application submitted by an applicant satisfies statutory conditions, the relevant licensing
authority shall grant the Labor Dispatch Operation Permit to the applicant. On January 28, 2019, Galaxy HR (SZ) obtained the Labor Dispatch
Operation Permit, which has been renewed and will remain effective until January 23, 2025, enabling Galaxy HR (SZ) to act as employers
of record for our