Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 111

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 111
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 promulgated on December 27, 2021 and became effective
on January 1, 2022. Foreign investment industries are classified into two categories, (1) industries in which foreign investments are
encouraged; and (2) industries in which foreign investments are regulated by the Negative List. The Negative List has further classified
regulated foreign investment industries into industries in which foreign investments are restricted and industries in which foreign investments
are prohibited. Our business does not fall under the “restricted” or “prohibited” category in the Negative List.

Regulations Relating to Foreign Investment

All limited liability companies
incorporated and operating in the PRC are governed by the Company Law of the People’s Republic of China, or the Company Law, which
was amended and promulgated by the Standing Committee of the National People’s Congress on October 26, 2018. However, on December
24, 2021, the Standing Committee of the National People’s Congress issued the Company Law of the People’s Republic of China
(Draft for Comments) (the “ Revised Company Law”) for public comments. The Revised Company Law further stipulates the establishment
and withdrawal of the company, the organizational structure and the capital system of the company, and strengthens the responsibilities
of shareholders and management personnel and corporate social responsibility. Foreign invested projects must also comply with the Company
Law, with exceptions as specified in foreign investment laws.

With respect to the establishment
and operation of wholly foreign-owned projects, or WFOE, the MOFCOM and NDRC, promulgated the Special Administrative Measures for the
Access of Foreign Investment (Negative List) (2021 Version) (the “2021 Negative List”) on December 27, 2021, which became
effective on January 1, 2022. The 2021 Negative List replaces the Special Administrative Measures for the Access of Foreign Investment
(2020 Version) (the “2020 Negative List”) and serves as the main basis for management and guidance for the MOFCOM to manage
and supervise foreign investments. Those industries not set out on the 2021 Negative List shall be classified as industries permitted
for foreign investment. None of our businesses are on the 2021 Negative List, nor on the 2020 Negative List. Therefore, we are able to
conduct our business through our wholly owned PRC subsidiary without being subject to restrictions on access imposed by the foreign investment
laws and regulations of the PRC.

The Foreign Investment