Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 1

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 1
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 the periods presented. You should not view our historical results as an indicator of our future performance.

B. Capitalization and indebtedness.

Not applicable.

C. Reasons for the offer and use of proceeds.

Not applicable.

D. Risk factors

An investment in our Ordinary
Shares involves a high degree of risk. You should carefully consider the following information about these risks, together with the other
information appearing elsewhere in this annual report, before deciding to invest in our Ordinary Shares. The occurrence of any of the
following risks could have a material adverse effect on our business, financial condition, results of operations and future growth prospects.
In these circumstances, the market price of our Ordinary Shares could decline, and you may lose all or part of your investment.

Risks Related to The PRC, Hong Kong, Taiwan
and Macau

Substantial uncertainties and restrictions
with respect to the political and economic policies of the PRC government and PRC laws and regulations could have a significant impact
upon the business that we may be able to conduct in the PRC and accordingly on the results of our operations and financial condition.

Galaxy Payroll Group Limited
is a holding company that, through our subsidiaries in Hong Kong, mainland China, Macau and Taiwan, provides payroll outsourcing and employment
service. Because of the majority of our operations are in the PRC and Hong Kong, economic, political and legal developments in the
PRC will significantly affect our business, financial condition, results of operations and prospects.

Our business operations may
be adversely affected by the current and future political environment in the PRC. The Chinese government exerts substantial influence
and control over the manner in which we must conduct our business activities. Our ability to operate in China may be adversely affected
by changes in Chinese laws and regulations. Under the current government leadership, the government of the PRC has been pursuing reform
policies which have adversely affected China-based operating companies whose securities are listed in the United States, with significant
policies changes being made from time to time without notice. There are substantial uncertainties regarding the interpretation and application
of PRC laws and regulations. Only after 1979 did the Chinese government begin to promulgate a comprehensive system of laws that regulate
economic affairs in general, deal with economic matters encourage foreign investment in China. Although the influence of the law has been
increasing, China has not developed a fully integrated legal system and recently enacted laws and regulations may not sufficiently cover
all aspects of economic activities in China. Also, because