Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 44

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 44
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%. The payment of dividends by entities
organized in China is subject to limitations, procedures and formalities. Regulations in China currently permit payment of dividends only
out of accumulated profits as determined in accordance with the accounting standards and regulations in China. The transfer to this reserve
must be made before distribution of any dividends to shareholders.

Our business may be materially and adversely
affected if our Chinese subsidiary declare bankruptcy or become subject to a dissolution or liquidation proceeding.

The Enterprise Bankruptcy
Law of China provides that an enterprise may be liquidated if the enterprise fails to settle its debts as and when they fall due and if
the enterprise’s assets are, or are demonstrably, insufficient to clear such debts. Our Chinese subsidiaries hold certain assets
that are important to our business operations. If any of our Chinese subsidiary undergo a voluntary or involuntary liquidation proceeding,
unrelated third-party creditors may claim rights to some or all of these assets, thereby hindering our ability to operate our business,
which could materially and adversely affect our business, financial condition and results of operations.

As an exempted company incorporated in the
Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly
from the Nasdaq listing standards; these practices may afford less protections to shareholders than they would enjoy if we complied fully
with such corporate governance listing standards.

As a Cayman Islands exempted
company listed on the Nasdaq Stock Market, we are subject to the Nasdaq listing standards. However, the Nasdaq Stock Market Rules permit
a foreign private issuer like us to follow the corporate governance practices of its home country. Currently, we rely on home country
practice with respect to certain aspects of our corporate governance. See “ Item 16G. Corporate Governance.” Our shareholders
may be afforded less protections than they would otherwise enjoy under the Nasdaq listing standards applicable to U. S. domestic issuers
given our reliance on the home country practice exception.

Risks Related to Our Ordinary
Shares

Our Ordinary Shares may be delisted from
the Nasdaq Capital Market as a result of our failure to meet the Nasdaq Capital Market continued listing requirements.

Our Ordinary Shares are currently
listed on the Nasdaq Capital Market under the symbol “ XTKG.” We must continue to meet the requirements set forth in Nasdaq
Listing Rule 5550 to remain listing on the Nasdaq Capital Market. On April 10, 2024, the Company received a written notification from
Nasdaq’s Listing Qualifications