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

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 10
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ation Report which: (1) vacated the December 16, 2021 Determination Report; and (2) concluded that the PCAOB
has been able to conduct inspections and investigations completely in the PRC in 2022. The December 15, 2022 Determination Report cautions,
however, that foreign authorities might take positions at any time that would prevent the PCAOB from inspecting and investigating completely.
As required by the HFCAA, if in the future the PCAOB determines it can longer inspect or investigate completely because of a position
taken by any foreign authority, including but is not limited to Hong Kong and mainland China authorities, the PCAOB will act expeditiously
to consider whether it should issue a new determination.

While the HFCAA is not currently
applicable to the Company because the Company’s current auditors are subject to PCAOB inspection, if this changes in the future
for any reason, the Company may be subject to the HFCAA. The implications of this regulation if the Company were to become subject to
it are uncertain. Such uncertainty could cause the market price of our Ordinary Shares to be materially and adversely affected, and our
securities could be delisted or prohibited from being traded on Nasdaq earlier than would be required by the HFCAA. If our Ordinary Shares
are unable to be listed on another securities exchange by then, such a delisting would substantially impair your ability to sell or purchase
the Ordinary Shares when you wish to do so, and the risk and uncertainty associated with a potential delisting would have a negative impact
on the price of the Ordinary Shares.

The recent joint statement by the SEC, proposed
rule changes submitted by Nasdaq, and an act passed by the U. S. Senate and the U. S. House of Representatives all call for additional and
more stringent criteria to be applied to emerging market companies. These developments could add uncertainties to our offering, business
operations, share price, and reputation.

U. S. public companies with
substantially all of their operations in China (including in Hong Kong) have been the subject of intense scrutiny, criticism, and negative
publicity by investors, financial commentators, and regulatory agencies, such as the SEC. Much of the scrutiny, criticism, and negative
publicity has centered on financial and accounting irregularities and mistakes, a lack of effective internal controls over financial accounting,
inadequate corporate governance policies, or a lack of adherence thereto and, in many cases, allegations of fraud.