Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 36

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 36
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 resources. As a result, we
may not discover any problems in a timely manner and current and potential shareholders could lose confidence in our financial reporting,
which would harm our business and the trading price of our Ordinary Shares. The absence of internal controls over financial reporting
may inhibit investors from purchasing our Ordinary Shares and may make it more difficult for us to raise funds in a debt or equity financing.

Additional material weaknesses
or significant deficiencies may be identified in the future. If we identify such issues or if we are unable to produce accurate and timely
financial statements, our stock price may decline and we may be unable to maintain compliance with the Nasdaq Listing Rules.

If we fail to upgrade, enhance and expand
our technology and services to meet client needs and preferences, the demand for our solutions and services may materially diminish.

Our businesses operate
in industries that are subject to rapid technological advances and changing client needs and preferences. In order to remain competitive
and responsive to client demands, we continually upgrade, enhance, and expand our technology, solutions and services. If we fail to respond
successfully to technology challenges and client needs and preferences, the demand for our solutions and services may diminish. In addition,
investment in product development often involves a long return on investment cycle. We have made and expect to continue to make significant
investments in product development. We must continue to dedicate a significant amount of resources to our development efforts before knowing
to what extent our investments will result in products the market will accept. In addition, our business could be adversely affected in
periods surrounding our new product introductions if customers delay purchasing decisions to evaluate the new product offerings. Furthermore,
we may not execute successfully on our product development strategy, including because of challenges with regard to product planning and
timing and technical hurdles that we fail to overcome in a timely fashion.

We operate in a highly competitive market.

The payroll outsourcing service
industry and the employment service industry in the PRC, Hong Kong, Japan, Taiwan, Macau, Australia and other Asian countries are fragmented
and there are a large number of market players in the two industries. Some of our competitors may have advantages over our Group, such
as (i) wider geographical coverage, services offerings, technology and security level, enabling them to enjoy higher economies of scale;
(ii) better industry reputation and image; and (iii) higher capability in providing value-added services including consulting services
and system maintenance and upgrade which are preferable to end-users.

There is no assurance that
our competitors will not develop the expertise