Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 162

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4A
Chunk 162
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Income tax expense

Income tax expense was HKD535,588
(US$68,229) for the year ended June 30, 2025, as compared to HKD1,783,803 for the year ended June 30, 2024. A decrease in our income tax
expense by HKD1,248,215 or -70.0% is due to the decrease in our total revenues and significant increase in our cost of revenues, research
and development expenses and selling, general and administrative expenses before income taxes as discussed aforementioned.

Net income (loss)

As a result of the above discussed,
the Group recorded a net loss of HKD27,568,713 (US$3,511,983) for the year ended June 30, 2025, compared to a net income of HKD5,505,489
for the year ended June 30, 2024. A significant increase in our net loss in the year ended June 30, 2025 resulted from significant increase
in our research and development expenses and selling, general and administrative expenses during the year ended June 30, 2025 as previously
discussed.

Liquidity and Capital Resources

The Group financed its daily
operations and business development through cash generated from the operations of the Group. As of June 30, 2025 and 2024, its cash and
restricted cash balance was HKD32,188,711 (US$4,100,525) and HKD10,855,128, respectively.

The following table set forth
a summary of its cash flows for the years indicated:

                                                           For the years ended June 30,                                                                                         
                                                           2023                                               2024                       2025                                   
                                                           HKD                                                HKD                        HKD                                    
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash provided by (used in) operating activities      $                                  16,086,260      $           6,725,500      $         (27,707,982      (3,529,724  
  Net cash used in investing activities                                                          (25,303                    (59,449                    (63,356          (8,071  
  Net cash (used in) provided by financing activities      $                                 (12,593,994      $         (13,286,626      $          49,269,420       6,