Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 19

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 19
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 and optimize our mix of services and delivery methods.
If we experience a slowdown or stoppage of service for any customer or on any project for which we have dedicated professionals or project
staffs, we may not be able to efficiently reallocate these professionals and project staffs to other customers and projects to keep their
utilization and productivity levels high. If we are not able to maintain high resource utilization levels without corresponding cost reductions
or price increases, our profitability will suffer.

If we are not able to maintain a strong
brand for our services and increase market awareness of our Company and our services, then our business, results of operations and financial
condition may be adversely affected.

We believe that we have a
strong brand name in our industry and the continuing success of our services will depend in part on our ability to develop and sustain
a strong brand identity for our services and to increase the market awareness of our services and their capabilities. The successful promotion
of our brand will depend largely on our continuous marketing efforts and our ability to offer high quality services to our customers.
Our brand promotion activities may not be successful or help to elevate the revenue. In addition, independent industry analysts may provide
reviews of our services and of competing products and services, which may significantly influence the perception of our services in the
marketplace. If these reviews are negative or not as positive as reviews of our competitors’ products and services, then our brand
reputation may be harmed.

The promotion of our brand
also requires us to make substantial expenditures, and we anticipate that these expenditures will increase as our industry becomes more
competitive and as we seek to expand into new markets. These higher expenditures may not result in any increased revenue or incremental
revenue that is sufficient to offset the higher expense levels. If we do not successfully maintain and enhance our brand, then our business
may not grow, we may see our pricing power reduced when compared to our competitors and we may lose customers, all of which would adversely
affect our business, results of operations and financial condition.

We may be unsuccessful
in entering into strategic alliances or identifying and acquiring suitable acquisition candidates, which could impede our growth and negatively
affect our revenues and net income.

We have pursued strategic
alliances and intend to pursue strategic acquisition opportunities to increase our scale and geographical presence, expand our service
offerings and capabilities and enhance our industry and technical expertise. While we believe the strategic plans that we implemented
would enable us to better leverage synergies between our existing businesses and the newly expanded