GLXG · Galaxy Payroll Group Limited

Galaxy Payroll Group Limited delivered improved financial results for the six months ended December 31, 2025, with total revenues growing 2% to HKD 14.0 million, driven by a 6% increase in employment services to HKD 5.3 million from new markets including Vietnam (HKD 19,488), India (HKD 99,486), Malaysia (HKD 177,869), and Italy (HKD 107,505), offsetting the exit from Australia. Payroll outsourcing services remained flat at HKD 8.7 million, with Hong Kong revenue up 93% to HKD 817,924 due to higher revenue per transaction (HKD 926 vs. HKD 651), counterbalanced by a 5% PRC decline to HKD 7.5 million amid fewer transactions. Gross margin held steady at 36% as cost of revenues rose 2.6% in line with revenues. The standout improvement came in operating expenses, plunging 80% to HKD 6.5 million after eliminating HKD 18.7 million in R&D spend and cutting SG&A 50% to HKD 6.5 million, primarily from lower staff costs (down 70%) absent prior-year one-time bonuses. This drove operating loss down to HKD 1.4 million (-10% of revenue) from HKD 26.7 million (-194%), and net loss to HKD 1.1 million from HKD 26.5 million, with EPS improving to -HKD 0.56 from -HKD 15.47. Balance sheet strengthened with cash at HKD 33.2 million (up from HKD 32.2 million at June 30, 2025), fueled by positive operating cash flow of HKD 1.3 million versus prior cash burn, and total assets expanding to HKD 44.0 million. Customer count rose to 210 from 196, with employment services clients up to 53. Management noted rising Asian demand for employment services amid skill shortages and inflation lifting average revenue per transaction to HKD 9,000.