Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 14

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 14
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 has implemented
various measures to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese
economy, but they may have a negative effect on us.

Economic conditions in Hong
Kong and China are sensitive to global economic conditions. Any prolonged slowdown in the global or Chinese economy may affect potential
clients’ confidence in financial market as a whole and have a negative impact on our business, results of operations, and financial
condition. Additionally, continued turbulence in the international markets may adversely affect our ability to access the capital markets
to meet liquidity needs.

Because our business is conducted in Hong
Kong dollars and the price of our Ordinary Shares is quoted in U. S. dollars, changes in currency conversion rates may affect the value
of your investments.

Our business is conducted
in Hong Kong through our operating subsidiary; our books and records are maintained in Hong Kong dollars, which is the currency of Hong
Kong; and the financial statements that we file with the SEC and provide to our shareholders are presented in U. S. dollars. Changes in
the exchange rate between the Hong Kong dollar and U. S. dollar affect the value of our assets and the results of our operations in U. S.
dollars. The value of the Hong Kong dollar against the U. S. dollar and other currencies may fluctuate and is affected by, among other
things, changes in the Hong Kong’s political and economic conditions and perceived changes in the economy of Hong Kong and the United
States. Any significant revaluation of the Hong Kong dollar may materially and adversely affect our cash flows, revenue, and financial
condition. Further, our Ordinary Shares offered are denominated in U. S. dollars, and we will need to convert the net proceeds we receive
into Hong Kong dollar in order to use the funds for our business. Changes in the conversion rate between the U. S. dollar and the Hong
Kong dollar will affect that amount of proceeds we will have available for our business.

Since 1983, Hong Kong dollars
have been pegged to the U. S. dollars at the rate of approximately HKD7.80 to US$1.00. We cannot assure you that this policy will not be
changed in the future. If the pegging system collapses and Hong Kong dollars suffer devaluation, the Hong Kong dollar cost of our expenditures
denominated in foreign currency may increase. This would in turn adversely affect the operations and profitability of our business.

Risks