6-K
Galaxy Payroll Group Ltd (GLXG)
UNITEDSTATES
SECURITIESAND EXCHANGE COMMISSION
Washington,D.C. 20549
FORM6-K
REPORTOF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2025
Commission File Number: 001-42269
GalaxyPayroll Group Limited
25thFloor, Ovest
77Wing Lok Street
SheungWan, Hong Kong
+8523105 2611
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
INFORMATION CONTAINED IN THIS FORM 6-K REPORT
Press Release
On May 7, 2025, Galaxy Payroll Group Limited (the “Company”) issued a press release (the “Press Release”) reporting the Company’s interim financial results as of and for the six months period ended December 31, 2024 (“Interim Results”).
A copy of the Press Release announcing the Interim Results is included as Exhibit 99.1 to this Form 6-K
Interim Results
The unaudited financial results for the six months ended December 31, 2024 is furnished as Exhibit 99.2 to this Form 6-K.
Forward-Looking Statements
Matters discussed in this report may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The words “believe,” “anticipate,” “intends,” “estimate,” “potential,” “may,” “should,” “expect” “pending” and similar expressions identify forward-looking statements. The forward-looking statements in this report are based upon various assumptions. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations.
Exhibits
The following exhibit is included in this Form 6-K:
| Exhibit No. | Description of Exhibit |
|---|---|
| 99.1 | Press release of the Company dated May 7, 2025 |
| 99.2 | Galaxy Payroll Group Limited reports unaudited financial results for the six months ended December 31, 2024 |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Galaxy Payroll Group Limited | |
|---|---|
| By: | /s/ Wai Hong Lao |
| Name: | Wai Hong Lao |
| Title: | Chief Executive Officer |
Date: May 7, 2025
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Exhibit 99.1
| May 7, 2025 |
|---|
Galaxy Payroll Group Limited*(Incorporatedin the British Virgin Islands with limited liability)*
(Stock code: GLXG)
Galaxy Payroll Group Announces H2 2024 Financial Results
Strategic Partnerships and Advanced HR & Payroll Solutions
(Hong Kong, May 7, 2025) Galaxy PayrollGroup Limited (NASDAQ: GLXG, ”Galaxy Payroll Group”, “the Company”) today released its financial performance results for the six months ended December 31, 2024, detailing a challenging operating environment alongside significant strategic initiatives to drive its future growth and service enhancement.
For the six months ended December 31, 2024, Galaxy Payroll Group experienced a significant contraction in key revenue segments. Employment services revenue declined by 19.9% year-over-year, decreasing from approximately HKD6.29 million to HKD5.04 million (US$650,000). This decline was primarily due to reduced revenues in the People's Republic of China and Taiwan, which decreased by approximately HKD873 ,000 (US$112,400) and HKD612,000 (US$78,800) respectively. However, new business initiatives in South Korea contributed approximately HKD146,300 (US$18,800) in revenue, partially offsetting the decline.
Operating expenses rose approximately by HKD8.11 million, leading to an overall decline in operating margins and a net loss of HKD7.84 million (US$1 million) for the period, compared to a net income of HKD2.13 million in the prior period.
The short-term financial pressures are a strategic choice made by the company to achieve long-term sustainable growth. By optimizing operational efficiency and expanding market share, the company anticipates that these investments will yield significant returns in the future, driving overall performance improvement.
Strategic Initiatives and Collaborative Partnerships
In response to evolving market dynamics, Galaxy Payroll Group is actively expanding its service offerings through technology integration and strategic industry alliances.
Advanced HRIS Integration: The Company is investing in its Human Resource Information System (HRIS) to upgrade its payroll automation capabilities, performance tracking features, and compliance monitoring. This next-generation platform is designed to enhance operational efficiency and deliver more robust, data-driven HR solutions to its clients.
Strategic Collaborations: Galaxy Payroll Group is deepening its market footprint and technological innovation through alliances with prominent industry leaders. Notably, its partnerships with People Intelligence Singapore Pte. Ltd. and Euler Number Limited are pivotal to broadening its service portfolio. By leveraging People Intelligence Singapore’s comprehensive human resource management solutions and Euler Number Limited’s expertise in AI, Big Data, and emerging technologies, Galaxy Payroll Group is poised to deliver integrated, cost-effective solutions tailored to modern enterprise needs. These collaborations are set to enhance brand visibility, streamline operational processes, and explore new business opportunities across emerging markets.
Outlook and Future Strategy
Looking ahead, Galaxy Payroll Group is well positioned to navigate the highly competitive and fast-evolving market landscape. The Company is focused on continuously enhancing its HR and payroll solutions through targeted investments in advanced technology and the cultivation of robust strategic partnerships. These initiatives are expected to drive operational efficiencies and foster sustainable value creation for stakeholders.
In addition, Galaxy Payroll Group is actively exploring new market segments and opportunities that can further optimize its service offerings. By leveraging its strengthened technological capabilities and deepening industry collaborations, the Company aims to consolidate its market presence and deliver superior solutions that respond to evolving customer demands.
About Galaxy Payroll Group Limited
Galaxy Payroll Group Limited is a recognized leader in providing tailored HR and corporate solutions to businesses seeking to expand their operations regionally and internationally. With in-depth expertise in navigating the complexities of international regulations, Galaxy Group offers seamless solutions to support companies in establishing new entities and managing their global business operations. Galaxy Group’s commitment to delivering efficient, cost-effective solutions allows organizations to focus on their core business while addressing the challenges of compliance and market entry in new regions.
For more information, please visit Galaxy Payroll Group’s website: www.galaxyapac.com.
For enquiry, please contact Intelligent Joy Limited:
Karen Deng
Phone: (852) 5749 6688
Email: [email protected]
Exhibit 99.2
Revenues
Our revenue in respect of employment services decreased by HKD1,253,289, or -19.9%, from HKD6,291,707 for the six months ended December 31, 2023 to HKD5,038,418 (US$648,637) for the six months ended December 31, 2024. The decrease was mainly contributed by a significant decrease in the amount of revenue generated from the PRC of HKD872,866 (US$112,371) and in the amount of revenue generated from the Taiwan of HKD611,961 (US$78,782). The decrease is compensated by the new business development in South Korea of an amount of HKD146,308 (US$18,835). The revenue per payroll transaction generated in the PRC and Taiwan decreased from approximately HKD7,400 for the six months ended December 31, 2023 to approximately HKD7,000 for the six months ended December 31, 2024. Meanwhile, the revenue per payroll transaction generated in the non-PRC and non-Taiwan areas decreased from approximately HKD6,900 for the six months ended December 31, 2023 to approximately HKD6,400 for the six months ended December 31, 2024. These declines are primarily attributed to substantial reductions in the monthly remuneration packages for seconded employees, coupled with a significant decrease in the number of transactions in the PRC and Taiwan of 173 (from 762 to 589). This situation has been exacerbated by intensified competition in the market, leading to pricing pressures and a shift in client preferences towards cost-effective solutions. Additionally, changing economic conditions have resulted in reduced demand for employment services, further impacting our revenue streams**.** Consequently, the drop in revenue from these regions has significantly affected the overall revenue generated by our employment services business.
Our revenue in respect of payroll outsourcing services decreased by HKD44,661, or -0.5%, from HKD8,730,735 for the six months ended December 31, 2023 to HKD8,686,075 (US$1,118,230) for the six months ended December 31, 2024. The decrease in overall revenue was primarily due to a decline in total revenue from the PRC, amounting to HKD117,136 (US$15,080). In contrast, there was an increase in aggregate revenue from non-PRC regions of HKD72,475 (US$9,330). Despite an increase of 2,835 payroll transactions in the PRC (from 47,936 to 50,771), the significant reduction in revenue per payroll transaction in PRC, from HKD166 to HKD155, has significantly impacted the revenue generated in PRC. This decline is a result of heightened competition in the market and changing worldwide economic conditions. Consequently, the reduction in revenue from the PRC impacted the overall revenue from our payroll outsourcing services.
Cost of revenues
Cost of revenues included in-country partner costs, net exchange difference, employee compensation, related employee benefits and director’s remuneration. Employee compensation and related payroll benefits consisted of staff salaries, employer’s contribution to pension scheme, staff training, staff allowance and recruitment fee. For the six months ended December 31, 2024, cost of revenues was HKD8,786,932 (US$1,131,215), increased by HKD1,235,074, 16.4% from HKD7,551,858 in the same period in 2023. The percentage of cost of revenues to revenue increased from 50.3% for the six months ended December 31, 2023 to 64.0% for the six months ended December 31, 2024. Such increase is driven by the additional year-end bonus to employees, decrease in revenue and yearly salary increments during the period.
Operating Expenses
The Group’s total operating expenses increased by HKD8,113,919 from HKD4,829,486 in the six months ended December 31, 2023 to HKD12,943,405 (US$1,666,312) in the six months ended December 31, 2024, driven by a significant increase in selling, general and administrative expenses during the current period, offset by an increase in reversal of provision of credit losses incurred.
Selling, general and administrative expenses
Selling, general and administrative expenses consisted primarily of bank charge, building management fee, depreciation, insurance, Internet and IT service fee, meal and entertainment, office premises expenses, travelling, staff cost, legal and professional fees and others.
Selling, general and administrative expenses increased by HKD8,201,485 or 169.6% from HKD4,834,538 in the six months ended December 31, 2023 to HKD13,036,023 (US$1,678,235) in the six months ended December 31, 2024, which was mainly driven by the increase in legal and professional fee amounting to HKD713,422 and the increase in staff costs by HKD7,117,949 due to the yearly increment of salaries, salaries to the independent non-executive directors, additional year-end bonus and the discretionary bonuses to the directors and staffs.
Other income
Other income was primarily comprised of interest income, interest expenses and other income (expense). The total other income for the six months ended December 31, 2024 was HKD250,343 (US$32,228), compared to the total other income of HKD131,849 for the six months ended December 31, 2023. During the six months ended December 31, 2024, we recognized interest income, HKD339,072 (US$43,652), interest expenses, HKD34,181 (US$4,401) and other expense, HKD54,548 (US$7,023). For the six months ended December 31, 2023, we recognized interest income, HKD140,085, interest expenses, HKD19,068 and other income, HKD10,832.
Income tax expense
Income tax expense was HKD87,570 (US$11,275) for the six months ended December 31, 2024, as compared to HKD647,587 for the six months ended December 31, 2023. A decrease in our income tax expense by HKD560,017 or -86.5% is due to the decrease in our total revenues and significant increase in our cost of revenues 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 HKD7,843,071 (US$1,009,707) for the six months ended December 31, 2024, compared to a net income of HKD2,125,360 for the six months ended December 31, 2023. A significant increase in our net loss in the six months ended December 31, 2024 resulted from significant increase in our selling, general and administrative expenses in the six months ended December 31, 2024 as previously discussed.
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GALAXY PAYROLL GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31,<br> 2024 | |||||||
|---|---|---|---|---|---|---|---|
| HKD | US | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash | 10,855,128 | $ | 32,576,692 | ||||
| Accounts receivable, net | 2,556,073 | 2,794,708 | |||||
| Prepayment, deposits and other receivables, net | 2,787,564 | 20,408,289 | |||||
| Total current assets | 16,198,765 | 55,779,689 | |||||
| Property and equipment, net | 206,653 | 210,712 | |||||
| Right-of-use assets – operating lease | 2,332,135 | 1,766,010 | |||||
| Deferred initial public offering (“IPO”) costs | 7,334,123 | - | |||||
| Long-term rental deposit | 514,815 | 502,808 | |||||
| Total non-current assets | 10,387,726 | 2,479,530 | |||||
| Total assets | 26,586,491 | $ | 58,259,219 | ||||
| Liabilities and shareholders’ equity | |||||||
| Current liabilities | |||||||
| Accrued expenses and other payables | 14,466,134 | $ | 7,153,805 | ||||
| Account payable | 41,823 | 56,835 | |||||
| Income tax payable | 3,258,920 | 2,417,249 | |||||
| Operating lease obligation | 1,095,621 | 1,096,552 | |||||
| Total current liabilities | 18,862,498 | 10,724,441 | |||||
| Other liability | |||||||
| Operating lease obligation, non-current portion | 1,248,510 | 691,509 | |||||
| Total other liability | 1,248,510 | 691,509 | |||||
| Total liabilities | 20,111,008 | 11,415,950 | |||||
| Commitment and contingencies | |||||||
| Shareholders’ equity | |||||||
| Ordinary shares, US0.000625 par value, authorized unlimited number of Ordinary Shares as of December 31, 2024 and June 30, 2024; 18,012,500 and 16,000,000 shares issued and outstanding as of December 31, 2024 and June 30, 2024, respectively | 77,630 | 87,682 | |||||
| Subscription receivable | (77,630 | ) | - | ||||
| Additional paid-in capital | 40,000 | 48,293,749 | |||||
| Retained earnings (accumulated deficit) | 6,381,130 | (1,461,941 | ) | ) | |||
| Accumulated other comprehensive income (loss) | 54,353 | (76,221 | ) | ) | |||
| Total shareholders’ equity | 6,475,483 | 46,843,269 | |||||
| Total liabilities and shareholders’ equity | 26,586,491 | $ | 58,259,219 |
All values are in US Dollars.
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GALAXY PAYROLL GROUP LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTSOF OPERATIONS
ANDCOMPREHENSIVE INCOME (LOSS)
| For the six months ended<br> December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2024 | 2024 | ||||||
| HKD | HKD | US | ||||||
| Revenues | ||||||||
| Employment services | $ | 6,291,707 | $ | 5,038,418 | ||||
| Payroll outsourcing services | 8,730,735 | 8,686,075 | ||||||
| Total revenues | 15,022,442 | 13,724,493 | ||||||
| Cost of revenues | (7,551,858 | ) | (8,786,932 | ) | ) | |||
| Operating expenses | ||||||||
| Selling, general and administrative expenses | (4,834,538 | ) | (13,036,023 | ) | ) | |||
| Reversal of provision for credit losses | 5,052 | 92,618 | ||||||
| Total operating expenses | (4,829,486 | ) | (12,943,405 | ) | ) | |||
| Income (Loss) from operations | 2,641,098 | (8,005,844 | ) | ) | ||||
| Other income | ||||||||
| Interest income | 140,085 | 339,072 | ||||||
| Interest expense | (19,068 | ) | (34,181 | ) | ) | |||
| Other income (expense) | 10,832 | (54,548 | ) | ) | ||||
| Total other income | 131,849 | 250,343 | ||||||
| Income (Loss) before income tax | 2,772,947 | (7,755,501 | ) | ) | ||||
| Income tax expense | (647,587 | ) | (87,570 | ) | ) | |||
| Net income (loss) | $ | 2,125,360 | $ | (7,843,071 | ) | ) | ||
| Foreign currency translation adjustment | 7,242 | (130,574 | ) | ) | ||||
| Comprehensive income (loss) | $ | 2,132,602 | $ | (7,973,645 | ) | ) | ||
| Weighted average number of ordinary shares | ||||||||
| Basic | 16,000,000 | 17,152,801 | ||||||
| Earnings (Loss) per share | ||||||||
| Basic | $ | 0.13 | $ | (0.46 | ) | ) |
All values are in US Dollars.
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