Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 13

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 13
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 institution that are targeted. It is difficult
to predict the full impact of the Hong Kong National Security Law and HKAA on Hong Kong and companies located in Hong Kong. If our subsidiaries
are determined to be in violation of the Hong Kong National Security Law or the HKAA by competent authorities, our business operations
could be materially and adversely affected.

If we become subject to the recent scrutiny,
criticism, and negative publicity involving U. S.-listed China-based companies, we may have to expend significant resources to investigate
and/or defend the matter, which could harm our business operations, our reputation, and could result in a loss of your investment in our
Ordinary Shares, in particular if such matter cannot be addressed and resolved favorably.

During the last several years,
U. S.-listed companies that have substantially all of their operations in China have been the subject of intense scrutiny by investors,
financial commentators, and regulatory agencies. Much of the scrutiny has centered on financial and accounting irregularities and mistakes,
lack of effective internal controls over financial reporting, and, in many cases, allegations of fraud. As a result of the scrutiny, the
publicly traded stock of many U. S.-listed Chinese companies that have been the subject of such scrutiny has sharply decreased in value.
Many of these companies are now subject to shareholder lawsuits and/or SEC enforcement actions that are conducting internal and/or external
investigations into the allegations.

If we become the subject
of any such scrutiny, whether any allegations are true or not, we may have to expend significant resources to investigate such allegations
and/or defend the Company. Such investigations or allegations would be costly and time consuming and likely would distract our management
from our normal business and could result in our reputation being harmed. Our stock price could decline because of such allegations, even
if the allegations are false.

A downturn in the Hong Kong, China, or the
global economy, or a change in economic and political policies of China, could materially and adversely affect our business and financial
condition.

Our business may be influenced
to a significant degree by political, economic, and social conditions in Hong Kong and China generally. The Chinese economy differs from
the economies of most developed countries in many respects, including the amount of government involvement, level of development, growth
rate, control of foreign exchange, and allocation of resources. While the Chinese economy has experienced significant growth over the
past decades, growth has been uneven, both geographically and among various sectors of the economy. The PRC government