Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 7

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 7
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 sanction in such respect. However, as uncertainties remain regarding the interpretation and implementation
of these laws and regulations, we cannot assure you that we will comply with such regulations in all respects and we may be ordered to
rectify or terminate any actions that are deemed illegal by regulatory authorities. We may also become subject to fines and/or other sanctions
which may have material adverse effect on our business, operations and financial condition.

It may be difficult for U. S. regulators,
such as the Department of Justice, the SEC, and other authorities, to conduct investigation or collect evidence within China.

Shareholder claims or regulatory
investigation that are common in the United States generally are difficult to pursue as a matter of law or practicality in China. For
example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations or litigations
initiated outside China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory
authorities of another country or region to implement cross-border supervision and administration, such cooperation with regulatory authorities
in the Unities States - including the SEC and the Department of Justice - may not be efficient in the absence of mutual and practical
cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities Law, which became effective in March 2020,
no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the PRC territory.
While detailed interpretation of or implementation rules under Article 177 have yet to be promulgated, the inability for an
overseas securities regulator to directly conduct investigation or evidence collection activities within China may further increase the
difficulties you face in protecting your interests.

Our auditor is headquartered in China, and
is subject to inspection by the PCAOB on a regular basis. If the PCAOB determines that it cannot inspect or fully investigate our auditors
for two consecutive years, you may be deprived of the benefits of such inspection and our common stock could be delisted from the stock
exchange pursuant to the Holding Foreign Companies Accountable Act.

The Holding Foreign Companies
Accountable Act, or the HFCAA, was enacted on December 18, 2020. The HFCAA states if the SEC determines that we have filed audit reports
issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive years beginning
in 2021, the SEC shall prohibit our shares from being traded on a national securities exchange or in the over-the-counter trading