Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 16

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 16
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 an executive order to end the special status enjoyed by Hong Kong post-1997. As the autonomy
currently enjoyed may be compromised, it could potentially impact Hong Kong’s common law legal system and may, in turn, bring about
uncertainty in, for example, the enforcement of our contractual rights. This could, in turn, materially and adversely affect our business
and operations. Additionally, intellectual property rights and confidentiality protections in Hong Kong may not be as effective as in
the United States or other countries. Accordingly, we cannot predict the effect of future developments in the Hong Kong legal system,
including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof, or the pre-emption of local
regulations by national laws. These uncertainties could limit the legal protections available to us, including our ability to enforce
our agreements with our clients.

The fluctuation of the Renminbi may have
a material adverse effect on your investment.

The change in value of the
Renminbi against the U. S. dollar and other currencies is affected by various factors such as changes in China’s political and economic
conditions and China’s foreign exchange controls. On July 21, 2005, the PRC government changed its decade-old policy of pegging
the value of the Renminbi to the U. S. dollar. Under such policy, the Renminbi was permitted to fluctuate within a narrow and managed band
against a basket of certain foreign currencies. Later on, the People’s Bank of China has decided to further implement the reform
of the RMB exchange regime and to enhance the flexibility of RMB exchange rates. Such changes in policy have resulted in a significant
appreciation of the Renminbi against the U. S. dollar since 2005. There remains significant international pressure on the PRC government
to adopt a more flexible currency policy, which could result in a further and more significant adjustment of the Renminbi against the
U. S. dollar. Any significant appreciation or revaluation of the Renminbi may have a material adverse effect on the value of, and any dividends
payable on, our Ordinary Shares in foreign currency terms. More specifically, if we decide to convert our Renminbi into U. S. dollars,
appreciation of the U. S. dollar against the Renminbi would have a negative effect on the U. S. dollar amount available to us. To the extent
that we need to convert U. S