Company: XTKG
Filing Date: 2025-06-04
Form Type: 424B5
Source: 0001213900-25-051196
Chunk: 20

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-06-04
Form: 424B5
Chunk 20
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 “Item 3. Key
Information — D. Risk Factors — Risks Related to Doing Business in China — Our Ordinary Shares may be delisted under
the HFCAA if the PCAOB is unable to inspect auditors or their affiliates that are located in mainland China. The delisting of our Ordinary
Shares, or the threat of such delisting, may materially and adversely affect the value of your investment. Additionally, the inability
of the PCAOB to conduct inspections deprives our investors of the benefits of such inspections” in our 2024 Form 20-F.

Moreover, to the extent cash
or assets in the business are in the PRC/Hong Kong or a PRC/Hong Kong entity, the funds or assets may not be available to fund operations
or for other use outside of the PRC/Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability
of the holding company or its subsidiaries, by the PRC government to transfer cash or assets.

Cash Transfers Through our Organization and Dividend Policy

As of the date of this prospectus
supplement, there has been no transfer of cash or other assets, dividends or distributions among the holding company, its subsidiaries
and the affiliated entities. As of the date of this prospectus supplement, we have not declared any dividends or made any distributions
to our shareholders or U.S. investors.For details, see our consolidated
financial statements and their related notes included in our most recent annual report on Form 20-F.

We rely principally on dividends
and other distributions on equity from our PRC subsidiaries for our cash requirements, including for services of any debt we may incur.
Our PRC subsidiaries’ ability to distribute dividends and earnings is based upon their respective distributable earnings.

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Current PRC regulations
permit the companies in the PRC to pay dividends only out of their respective accumulated profits, if any, determined in accordance
with PRC accounting standards and regulations. Additionally, each of the companies in the PRC is required to set aside 10% of its
after-tax profits to fund a statutory reserve until such reserve reaches 50% of its registered capital if it distributes its
after-tax profits for the current financial year. In addition, cash transfers from our Cayman Islands holding company are subject to the applicable PRC laws and regulations on loans and direct investment. See “Item 3. Key Information — D. Risk Factors — Risk Related to Doing Business in China —