Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 96

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 4
Chunk 96
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 a direct sales
force and a network of global channel partners, designed to accelerate and scale up our market adoption efficiently and globally.

We believe our customer relationship-focused
sales model is an advantage compared to other competitors’ product focused approach, enabling us to develop and form strong, long-term
relationships with our existing and potential customers.

Our direct sales and marketing
teams are comprised of field sales, corporate sales and business development based on customer size, geographic markets, channel networks,
and target industries, striving to sustain our high customer retention and long customer tenure.

We continue to focus on cross-sell
additional products and platforms with our existing customers to expand the scope of adoption for our solutions and services.

Our sales team is organized
by customer type and geography. Our direct sales force is supported by sales engineers and service consultants. Our indirect channel partners
include value added resellers, system integrators, software and application providers, system hardware providers and other referral partners.
As of the date of this Annual Report, our sales teams consisted of 10 full-time sales and marketing personnel. For the fiscal year ended
December 31, 2024, 2023 and 2022, our sales and marketing expense were approximately $1.1 million, $1.5 million and $2.0 million, respectively,
representing 9.5%, 8.8% and 18.7% of our total revenues for the fiscal year ended December 31, 2024, 2023 and 2022, respectively.

We generate customer leads,
accelerate sales opportunities and build brand awareness through our marketing programs. Our marketing programs target management and
technology executives of global trade businesses, government agencies and authorities, and various service providers, including user conferences,
sponsored events and product promotions.

We continue to develop strategic
partnerships with provincial and local government agencies, technology organizations, trade zone authorities and other government organizations,
i. e., regional customs and commerce agencies, bonded and other trade facilities, and China port and other state-owned entities, to drive
sales by leveraging their strengths and resources in targeted customer base, strong regional market influence and extensive government
and industry resources.

As part of our overall strategy,
we plan to expand into international markets to provide global trade software solutions and services by “piggybacking” with
the infrastructure builders and other Chinese organizations who participate in the B& R’s development of global trade infrastructures
in the B& R partnering countries.

Research and Development (“ R& D”)

Our