Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 19

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 19
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 pandemic occurring, such as the most recent outbreak of COVID-19, in the PRC, Hong Kong, Taiwan and Macau, or
even in areas outside of the PRC, Hong Kong, Taiwan and Macau, may severely affect and restrict the level of economic activity as the
government may impose regulatory administrative measures quarantining affected areas or other measures to control the outbreak of the
disease, which in turn may adversely affect our business, financial condition and results of operations. Acts of war and terrorism may
cause damage or disruption to us or our employees, facilities, markets, suppliers or customers, any of which may adversely impact our
revenue, cost, financial condition and results of operations or the trading price of our Shares. Potential war or terrorist attacks may
also cause uncertainty and cause our business to suffer in ways that we cannot currently predict.

Risks Related to Our Corporate Structure

We rely on dividends and other distributions
on equity paid by our subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our subsidiaries
to make payments to us could have a material adverse effect on our ability to conduct our business.

We are a holding company
incorporated in the British Virgin Islands with most of the business operations conducted by our Operating Entities in Hong Kong, Taiwan,
Macau and the PRC, and we rely on dividends and other distributions on equity paid by our subsidiaries for our cash and financing requirements,
including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur. If
any of our subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay
dividends or make other distributions to us.

Subject to the BVI Act and
our Amended and Restated Charter, our board of directors may, by resolutions of directors, authorize and declare a dividend to our shareholders
at such time and of such an amount as they think fit if they are satisfied, on reasonable grounds, that immediately following the dividend
the value of our assets will exceed our liabilities and we will be able to pay our debts as they fall due. There is no further BVI statutory
restriction on the amount of funds which may be distributed by us by dividend.

According to the Companies
Ordinance of Hong Kong, a Hong Kong company may only make a distribution out of profits available for distribution or other distributable
reserves. Dividends cannot be paid out of share capital. Under