Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 5

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 5
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subject to various risks and delays over which we have little or no control, including our customers’ decisions to choose alternatives
to our services (such as other providers or in-house resources) and the timing of our customers’ budget cycles and approval processes.
Implementing our services, particularly for our application development services also involves a significant commitment of resources over
an extended period of time ranging from three months to three years from both our customers and us. As a result, we may have a longer
selling cycle and delay in business meetings, which could materially and adversely affect our business and our financials. Our customers
may experience delays in obtaining internal approvals or delays associated with our services, thereby further delaying the implementation
process. Our current and future customers may not be willing or able to invest the time and resources necessary to implement our services,
and we may fail to close sales with potential customers to which we have devoted significant time and resources, which could have a material
adverse effect on our business, results of operations, financial condition and cash flows.

Adverse changes in the economic environment,
either in China or globally, could reduce our customers’ purchases from us and increase pricing pressure, which could materially
and adversely affect our revenues and results of operations.

The software application and
technology service industry are particularly sensitive to the economic environment, both in China and globally, and tend to decline during
general economic downturns. Accordingly, our results of operations, financial condition and prospects are subject to a significant degree
to the economic environment, especially for regions in which we and our customers operate. During an economic downturn, our customers
may cancel, reduce or defer their technology spending or change their technology strategy, and reduce their purchases from us. The recent
global economic slowdown, any future economic slowdown, and the resulting diminution in technology spending, could also lead to increased
pricing pressure from our customers. The trade war between the U. S. and China which may lead to higher percentage of tariff to be placed
on Chinese and American goods and services could also lead to a reduction of import and export volume for some of our customers resulting
in reduced purchases of our services from these customers. The occurrence of any of these events could materially and adversely affect
our revenues and results of operations.

We generate a significant portion of our
revenues from a relatively small number of major customers and loss of business from these customers could reduce our revenues and significantly
harm our business.

We believe that in the foreseeable
future we will continue to derive a significant