Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 8

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 8
---
market in the United States.

Pursuant to the Holding Foreign
Companies Accountable Act, the PCAOB issued a Determination Report on December 16, 2021 which found that the PCAOB is unable to inspect
or investigate completely registered public accounting firms headquartered in: (1) mainland China of the PRC because of a position taken
by one or more authorities in mainland China; and (2) Hong Kong, a Special Administrative Region and dependency of the PRC, because of
a position taken by one or more authorities in Hong Kong.

As auditors of companies
that are traded publicly in the United States and a firm registered with the PCAOB, our auditor is required to undergo regular inspections
by the PCAOB. Inspections of certain other firms that the PCAOB has conducted have identified deficiencies in those firms’
audit procedures and quality control procedures, which may be addressed as part of the inspection process to improve future audit quality.
We are required by the HFCAA to have an auditor that is subject to the inspection by the PCAOB.

On May 13, 2021, the PCAOB
proposed a new rule for implementing the HFCAA. Among other things, the proposed rule provides a framework for the PCAOB to use when determining,
under the HFCAA, whether it is unable to inspect or investigate completely registered public accounting firms located in a foreign jurisdiction
because of a position taken by one or more authorities in that jurisdiction. The proposed rule would also establish the manner of the
PCAOB’s determinations; the factors the PCAOB will evaluate and the documents and information it will consider when assessing whether
a determination is warranted; the form, public availability, effective date, and duration of such determinations; and the process by which
the board of the PCAOB can modify or vacate its determinations. The proposed rule was adopted by the PCAOB on September 22, 2021 and approved
by the SEC on November 5, 2021.

On June 22, 2021, the U. S.
Senate passed a bill which, if passed by the U. S. House of Representatives and signed into law, would reduce the number of consecutive
non-inspection years required for triggering the prohibitions under the HFCAA from three years to two. On December 29, 2022, the Accelerating
Holding Foreign Companies Accountable Act, as part of the Consolidated Appropriations Act, 2023, was signed into law, which amended