Global Times learned that on September 12, the human resources outsourcing service provider, Galaxy Payroll Group Ltd (hereinafter referred to as "Galaxy Talent"), was listed on NASDAQ in the USA, with the stock code GLXG.

Galaxy Talent (GLXG) went public at a price of $4 per share, issuing 2 million common shares and reselling 2.24 million common shares held by existing shareholders. By the close of the US stock market on September 12, the company's stock price had risen to $4.45 per share, an increase of 11.25% from the issue price, with a total market value of approximately $0.08 billion.

Galaxy Talent was established in 2013 and is a Hong Kong-based human resources outsourcing provider. As of June 30, 2023, the company has only 26 employees.

The services provided to customers mainly include three categories: first, acting as a global human resources service provider hired by customers, handling compensation and employment-related matters for customers' branches in different regions; second, multinational companies directly outsourcing their payroll and employment functions to Galaxy Talent; third, providing consulting and market research services to help customers expand globally in the future.

In providing payroll outsourcing services, Galaxy Talent assists customers in calculating wages, social security, provident funds, and personal income tax, and making payments to employees' bank accounts in accordance with legal requirements in various regions, while monitoring and maintaining payroll records, preparing and submitting employment-related tax returns, and so on.

In providing employment services, Galaxy Talent's domestic partners employ suitable candidates found by customers and second them to customers, with the company acting as the nominal employer to process the payroll of seconded employees. As of the date of the prospectus, Galaxy Talent directly provides employment services in Hong Kong, Taiwan, and Macau, collaborates with domestic partners in China, Japan, Australia, Thailand, Malaysia, Vietnam, India, Indonesia, the Philippines, and other countries or regions to provide employment services.

In providing consulting and market research services, Galaxy Talent offers policy consulting and national profile reports, provides general consultations on different themes each month, and conducts Q&A sessions with local experts. However, due to the company's management rethinking the business strategy for consulting and market research services, these services have been temporarily suspended since July 2022.

Income disaggregated by service items and the geographical location of customer employees. Image source: Prospectus.

In terms of performance, the revenue of Garyxx Talent in the fiscal year 2022, fiscal year 2023 (as of June 30 each year), and June to December 2023 were approximately HKD 46.9 million, HKD 31.5 million, and HKD 15 million respectively. The corresponding net income was approximately HKD 22.6 million, HKD 9 million, and HKD 2.1 million. The company's performance shows some fluctuations, with a significant decline in revenue and net income in fiscal year 2023, as well as a continued downward trend from June to December 2023.

The company has signed human resources outsourcing service agreements with major domestic partners, who provide payroll outsourcing services and employment services in mainland China.

In the fiscal year 2022, fiscal year 2023 (as of June 30 each year), and June to December 2023, Garyxx Talent's major domestic partners accounted for more than 35%, 50%, and 38% of the cost of domestic partner relations respectively. If the company's relationship with major domestic partners deteriorates or terminates, it may affect the company's business and operational performance.

Garyxx Talent's clients mainly include multinational corporations as well as companies in industries such as retail and trade, industry, IT, media, finance, and professional services.

A significant portion of the company's revenue comes from its top five clients. In the fiscal year 2022, fiscal year 2023 (as of June 30 each year), and June to December 2023, revenue generated from these clients accounted for approximately 71.4%, 59.7%, and 72.5% of the total revenue, which is quite substantial. If these clients reduce their demand for the company's services in the future, it may impact the company's operational performance.

In addition, Garyxx Talent possesses a large amount of personal data related to clients and seconded employees, and is obliged to comply with the personal data protection laws and regulations implemented in countries such as China, Japan, and Australia in the manner required. If the company's IT system encounters functional issues or fails to comply with the relevant laws and regulations regarding the protection, collection, use, and disclosure of personal data due to power outages, hacker attacks, computer virus security vulnerabilities, or the misuse of internal staff, it may result in data breaches, affecting the company's reputation and even leading to the loss of major clients.

Garyxx Talent plans to use the net proceeds from this issuance for brand promotion and marketing, talent recruitment, expanding new offices and service scope, enhancing IT systems, and general operating capital.