Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 4

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 4
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 be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy than
in more developed legal systems.

Adverse regulatory developments in China
may subject us to additional regulatory review, and additional disclosure requirements and regulatory scrutiny to be adopted by the SEC
in response to risks related to recent regulatory developments in China may impose additional compliance requirements for companies like
us with China-based operations, all of which could increase our compliance costs, subject us to additional disclosure requirements.

The recent regulatory developments
in China, in particular with respect to restrictions on China-based companies raising capital offshore, may lead to additional regulatory
review in China over our financing and capital raising activities in the United States. In addition, we may be subject to industry-wide
regulations that may be adopted by the relevant PRC authorities, which may have the effect of restricting the scope of our operations
in China, or causing the suspension or termination of our business operations in China entirely, all of which will materially and adversely
affect our business, financial condition and results of operations. We may have to adjust, modify, or completely change our business operations
in response to adverse regulatory changes or policy developments, and we cannot assure you that any remedial action adopted by us can
be completed in a timely, cost-efficient, or liability-free manner or at all.

On July 30, 2021, in
response to the recent regulatory developments in China and actions adopted by the PRC government, the Chairman of the SEC issued a statement
asking the SEC staff to seek additional disclosures from offshore issuers associated with China-based operating companies before their
registration statements will be declared effective. On August 1, 2021, the China Securities Regulatory Commission stated in a statement
that it had taken note of the new disclosure requirements announced by the SEC regarding the listings of Chinese companies and the recent
regulatory development in China, and that both countries should strengthen communications on regulating China-related issuers. We cannot
guarantee that we will not be subject to tightened regulatory review and we could be exposed to government interference in China.

Compliance with China’s new Data Security
Law, Cybersecurity Review Measures, Personal Information Protection Law, regulations and guidelines relating to the multi-level protection
scheme and any other future laws and regulations may entail significant expenses and could materially affect our business.

Recently, the Cyberspace
Administration of China has taken action against several Chinese internet companies in connection with their initial public offerings
on U. S. securities exchanges,