Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 135

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4A
Chunk 135
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’s economic and fixed investment growth, bank credit and inflationary pressure, the PRC government
has taken measures, including direction and/or restrictions on bank loans to certain sectors and change in interest rates, with the aim
of managing the PRC’s economic growth. In recent years, the PRC government has implemented measures emphasizing the utilization
of market forces in reforming the economy. Such economic reform measures, and any additional measures which may be further taken by the
PRC government, may have a significant negative impact on the PRC economy which in turn may adversely affect our Group’s business,
financial condition, operation results and future prospects.

While the PRC economy has
experienced significant growth in the past few decades, growth has been uneven across different regions and economic sectors and there
is no assurance that such growth can be sustained or is sustainable. Concerns over capital market volatility, issues of liquidity, inflation,
geopolitical issues, the availability and cost of credit have resulted in adverse market conditions in the PRC. Furthermore, changes
in the economic, political and social conditions, laws, regulations and policies of the PRC government may have a material and adverse
effect on our Group’s business, financial condition, results of operations and future prospects.

The PRC’s legal system has inherent uncertainties
as to the interpretation and enforcement of PRC laws, which could have a material adverse effect on us

Part of our business in
the PRC is conducted through our PRC subsidiary. Thus, our operations in the PRC are governed by PRC laws and regulations. Our PRC subsidiary
is generally subject to laws and regulations applicable to foreign investments in the PRC and, in particular, laws applicable to wholly
foreign-owned enterprises. The PRC legal system is based on written statutes and regulations as well as their interpretation by the competent
government authorities including the Supreme People’s Court of the PRC. Prior court decisions may be cited for reference but have
limited precedential value.

The PRC has not developed
a fully integrated legal system and recently enacted laws and regulations may not sufficiently cover all aspects of economic activities
in the PRC. In particular, because these laws and regulations are relatively new, and because published court decisions are limited in
number and are non-binding, there are uncertainties involved in the interpretation and enforcement of these laws and regulations. In addition,
the PRC legal system is based in part on government policies and internal rules (some of which are not published on a timely basis or
at all)