Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 70

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 70
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 leaked among
employees within their companies. Furthermore, since large amount of funds is involved during the payroll process, it is important for
us to gain trust from our channel customers and end-users. We have maintained long-term and stable business relationships with our five
largest customers, ranging from approximately four to seven years, but with the development of our business, these five largest customers
may change.

During the years ended June
30, 2025, 2024 and 2023, 27%, 21% and 40% of the Group’s revenue was conducted through cooperating with our in-country partners
where appropriate, 73%, 79% and 60% of the Group’s revenue was conducted through cooperating with the Group’s subsidiaries.
It was our well-established business relationship with our customers that made them engage our Group for services in the PRC instead of
directly engaging the service providers in the PRC. Our customers (both channels and end-users) are mainly multinational companies/organizations,
and they believe that engaging a service provider in Hong Kong can facilitate the communication with the PRC service providers and relevant
government authorities. The quality of our services and our well-established business relationships with our customers have increased
our competitiveness in providing our services in the PRC.

Over the years ended June
30, 2025, 2024 and 2023, we had solid business relationship with global channels in the payroll outsourcing service market and employment
service market. Once business relationship with our channel customers is developed, we normally have steady flow of business from end-users
through our channel customers. We believe that our major customers will continue to engage us as their in-country payroll outsourcing
and employment service providers, which serve as solid foundation for our Group to further develop a broader customer base.

We are capable of providing high quality payroll
outsourcing services and employment services to our customers to ensure compliance with local regulations for our end-users.

A company’s payroll
and employment functions are costly, time-consuming and require local knowledge for each jurisdiction. Multinational companies that are
not familiar with local regulations generally prefer outsourcing their payroll and employment functions to specialized human resources
outsourcing service providers with local expertise whom they can rely on to reduce the risk of non-compliance with local laws and regulations,
such as contribution to MPF in Hong Kong and social security, housing provident funds and individual income tax in the PRC. Since our
Directors and senior management personnel possess extensive experience in the industry, our Group is capable