Company: XTKG
Filing Date: 2025-06-04
Form Type: 424B5
Source: 0001213900-25-051196
Chunk: 49

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-06-04
Form: 424B5
Chunk 49
---
 number of factors out of our,
and our current auditor’s, control, including positions taken by authorities of the PRC. The PCAOB is expected to continue to demand
complete access to inspections and investigations against accounting firms headquartered in mainland China and Hong Kong in the future.
The PCAOB is required under the HFCAA to make its determination on an annual basis with regard to its ability to inspect and investigate
completely accounting firms based in mainland China and Hong Kong. The possibility of being a “Commission-Identified Issuer”
and the risk of delisting could continue to adversely affect the trading price of our securities. Should the PCAOB again encounter impediments
to inspections and investigations in mainland China or Hong Kong as a result of positions taken by any authority in either jurisdiction,
the PCAOB will make determinations under the HFCAA as and when appropriate. For details, see “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.”, which is included in our most recent annual report on Form 20-F. Recent developments with
respect to audits of China-based companies may still also create uncertainty about the ability of our auditor to fully cooperate with
the PCAOB’s inspection requests without the approval of the relevant PRC authorities. The delisting of our ordinary shares, or
the threat of their being delisted, may have a material adverse impact on our listing and trading in the U.S. and the trading prices
of our ordinary shares.

Our ability to pay dividends
to the shareholders and to service any debt it may incur may depend upon dividends paid by our PRC subsidiaries. If any of our subsidiaries
incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to us. Under
PRC laws and regulations, our PRC subsidiaries are subject to certain restrictions with respect to payment of dividends or other transfers
of any of their net assets to us. Our PRC subsidiaries are permitted to pay dividends only out of their retained earnings, if any, as
determined in accordance with PRC accounting standards and regulations. PRC laws also require a