Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 34

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 34
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 our businesses are
highly dependent on our ability to process, on a daily basis, a large number of complicated transactions. We rely heavily on our payroll,
financial, accounting, and other data processing systems. We need to properly manage our systems, applications and solutions, and any
upgrades, enhancements and expansions we may undertake from time to time, in order to ensure they properly support our businesses. If
any of these systems, applications or solutions fails to operate properly or becomes disabled even for a brief period of time, whether
due to malevolent acts, errors, defects or any other factor(s), we could suffer financial loss, a disruption of our businesses, liability
to clients, loss of clients, regulatory intervention or damage to our reputation, any of which could have a materially adverse effect
on our results of operation or financial condition. We have disaster recovery, business continuity, and crisis management plans and procedures
designed to protect our businesses against a multitude of events, including natural disasters, military or terrorist actions, power or
communication failures, or similar events. Despite our preparations, our plans and procedures may not be successful in preventing or mitigating
the loss of client data, service interruptions, disruptions to our operations, or damage to our important facilities.

A disruption of the data centers or cloud-computing
services that we utilize could have a materially adverse effect on our business.

We host our applications
and serve our clients with data centers that we operate, and with data centers that are operated, and cloud-computing services that are
provided, by third-party vendors. If any of these data centers or cloud-computing services fails, becomes disabled or is disrupted, even
for a limited period of time, our businesses could be disrupted and we could suffer financial loss, liability to clients, loss of clients,
regulatory intervention or damage to our reputation, any of which could have a material adverse effect on our results of operation or
financial condition. In addition, our third-party vendors may cease providing data center facilities or cloud-computing services, elect
to not renew their agreements with us on commercially reasonable terms or at all, breach their agreements with us or fail to satisfy our
expectations, which could disrupt our operations and require us to incur costs which could materially adversely affect our results of
operation or financial condition.

Our lack of effective internal controls
over financial reporting may affect our ability to accurately report our financial results or prevent fraud, which may affect the market
for and price of our Ordinary Share