Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 154

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4A
Chunk 154
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,952 for the year ended June 30, 2024. The decrease in overall revenue was primarily attributable
to a significant decline in employment services, amounting to HKD2,699,913, despite a slight increase in payroll outsourcing services
of HKD4,380.

Our revenue in respect of
employment services decreased by HKD2,699,913, or -22%, from HKD12,529,119 for the year ended June 30, 2024 to HKD9,829,206 (US$1,252,144)
for the year ended June 30, 2025. The decrease was mainly contributed by a significant decrease in the amount of revenue generated from
the PRC of HKD2,244,460 (US$285,922) and in the amount of revenue generated from the Taiwan of HKD1,291,230 (US$164,690). The decrease
is compensated by the new business development in South Korea, Italy, Hong Kong and Australia of an amount of HKD912,964 (US$116,303).
The revenue per payroll transaction generated in the PRC decreased from approximately HKD9,400 for the year ended June 30, 2024 to approximately
HKD8,100 for the year ended June 30, 2025. The revenue per payroll transaction generated in Taiwan did not have material movement. Meanwhile,
the revenue per payroll transaction generated in the non-PRC and non-Taiwan areas increased from approximately HKD6,300 for the year ended
June 30, 2024 to approximately HKD6,800 for the year ended June 30, 2025. These declines are primarily due to substantial reductions in
the monthly remuneration packages for seconded employees, along with a notable decrease in the number of payroll transactions in the PRC
and Taiwan, which fell from 1,478 to 1,100. This situation has been further aggravated by heightened market competition, resulting in
pricing pressures and a shift in client preferences towards more cost-effective solutions. Additionally, changing economic conditions
have led to diminished demand for employment services, adversely impacting our revenue in respect of employment services. Consequently,
the reduction in revenue from PRC and Taiwan has significantly affected the overall revenue generated by our employment services business.

Our revenue in respect of
payroll outsourcing services decreased by HKD4,280, or 0%, from HKD17,595,833 for the year ended June