Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 9

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 9
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 the
HFCAA and reduced the number of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from
three years to two, thus, would reduce the time before an applicable issuer’s securities may be prohibited from trading or delisted.
It can potentially cause delisting as well as depress the price of a foreign issuer’s securities if the issuer’s auditor is
beyond the PCAOB’s complete inspection and investigation.

The SEC is assessing how
to implement other requirements of the HFCAA, including the listing and trading prohibition requirements described above. The SEC may
propose additional rules or guidance that could impact us if our auditor is not subject to the PCAOB inspection. For example, on August
6, 2020, the President’s Working Group on Financial Markets, or the PWG, issued the Report on Protecting United States Investors
from Significant Risks from Chinese Companies to the then President of the United States. This report recommended the SEC implement five
recommendations to address companies from jurisdictions that do not provide the PCAOB with sufficient access to fulfill its statutory
mandate. Some of the concepts of these recommendations were implemented with the enactment of the HFCAA. However, some of the recommendations
were more stringent than the HFCAA. For example, if a company was not subject to the PCAOB inspection, the report recommended that the
transition period before a company would be delisted would end on January 1, 2022.

On December 2, 2021, the
SEC issued amendments to finalize the interim final rules previously adopted in March 2021, and established procedures to identify issuers
and prohibit the trading of the securities of certain registrants as required by the HFCAA.

On August 26, 2022, the PCAOB
announced and signed a Statement of Protocol (the “ Protocol”) with the China Securities Regulatory Commission and the Ministry
of Finance of the People’s Republic of China. The Protocol provides the PCAOB with: (1) sole discretion to select the firms, audit
engagements and potential violations it inspects and investigates, without any involvement of Chinese authorities; (2) procedures for
PCAOB inspectors and investigators to view complete audit work papers with all information included and for the PCAOB to retain information
as needed; (3) direct access to interview and take testimony from all personnel associated with the audits the PCAOB inspects or investigates.

On December 15, 2022, the
PCAOB issued a new Determin