Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 40

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 40
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, in which case the market price and liquidity of our Shares will be materially and adversely affected. In
recent years, the stock markets generally have experienced extreme price and volume fluctuations that have often been unrelated or
disproportionate to the operating performance of certain publicly traded companies. Broad market and industry factors may significantly
affect the market price of our Ordinary Shares, regardless of our actual operating performance.

In addition, in the past,
class action litigation has often been instituted against companies whose securities have experienced periods of volatility in market
price. Securities litigation brought against us following any volatility in the price of our Shares, regardless of the merit or ultimate
results of such litigation, could result in substantial costs, which would hurt our financial condition and operating results and divert
management’s attention and resources from our business.

The trading price of our Ordinary Shares
could be subject to rapid and substantial volatility, which could make it difficult for prospective investors to assess the rapidly changing
value of our Ordinary Shares and result in substantial losses to the investors.

There have been instances
of extreme stock price run-ups followed by rapid price declines and strong stock price volatility with recent initial public offerings,
especially among those with relatively smaller public floats. As a relatively small-capitalization company with relatively small public
float, we may experience greater stock price volatility, extreme price run-ups, lower trading volume and less liquidity than large-capitalization
companies. In particular, our Ordinary Shares may be subject to rapid and substantial price volatility, low volumes of trades and large
spreads in bid and ask prices. Such volatility, including any stock-run up, may be unrelated to our actual or expected operating performance
and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Ordinary
Shares.

The trading prices volatility
and wide fluctuations could be due to factors beyond our control. This may happen due to broad market and industry factors, such as performance
and fluctuation in the market prices or underperformance or deteriorating financial results of other listed companies. For example, if
the trading volumes of our Ordinary Shares are low, persons buying or selling in relatively small quantities may easily influence prices
of our Ordinary Shares. This low volume of trades could also cause the price of our Ordinary Shares to fluctuate greatly, with large percentage
changes in price occurring in any trading day session. Holders of our Ordinary Shares may also not be able to readily liquidate their
investment or may be forced to sell at depressed prices due to low volume trading. The trading