Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 17

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 17
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. dollars we receive from our contemplated initial public offering into Renminbi for our operations, appreciation
of the Renminbi against the U. S. dollar would have an adverse effect on the Renminbi amount we would receive from the conversion. In addition,
appreciation or depreciation in the exchange rate of the Renminbi to the U. S. dollar could materially and adversely affect the price of
shares of our Ordinary Shares in U. S. dollars without giving effect to any underlying change in our business or results of operations.

Our results of operations are subject to
fluctuations in the exchange rate between the U. S. dollar and the Hong Kong dollar.

Exchange rate fluctuations
between the U. S. dollar and the Hong Kong dollar, as well as inflation in Hong Kong may negatively affect our earnings.
A portion of our revenues and expenses are denominated in U. S. dollars. However, a significant portion of the expenses associated
with our subsidiaries’ Hong Kong operations, including facilities-related expenses, are incurred in Hong Kong dollars,
and personnel-related expenses are expected to be incurred in Hong Kong dollars. Consequently, inflation in Hong Kong will
have the effect of increasing the dollar cost of our operations in Hong Kong, unless it is offset on a timely basis by a devaluation
of the Hong Kong dollar, as applicable, relative to the U. S. dollar. We cannot predict any future trends in the rate of inflation
in Hong Kong or the rate of devaluation of the Hong Kong dollar, as applicable, against the U. S. dollar. In addition, we are
exposed to the risk of fluctuation in the value of the Hong Kong dollar vis-a-vis the U. S. dollar. While the Hong Kong
government has continued to pursue a fixed exchange rate policy, with the Hong Kong dollar pegged at approximately HKD7.80 to $1.00,
we cannot assure you that such policy will be maintained. Any significant appreciation of the Hong Kong dollar against the U. S. dollar
would cause an increase in our Hong Kong dollar expenses, as applicable, as recorded in our U. S. dollar denominated financial
reports, even though the expenses denominated in Hong Kong dollars, as applicable, will remain unchanged. In addition, exchange rate
fluctuations in currency exchange rates in countries or areas other than Hong Kong where we operate and do business may also negatively
affect our earnings.

Restrictions on currency exchange may limit
our ability to receive and use