Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 86

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 4
Chunk 86
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that require us, our subsidiaries to obtain regulatory approval from the Chinese authorities before listing in the U. S.

If we do not receive or maintain
the approval, or permission, or inadvertently conclude that such approval or permission is not required, or applicable laws, regulations,
or interpretations change such that we are required to obtain approval or permission in the future, we may be subject to an investigation
by competent regulators, fines or penalties, or an order prohibiting us from conducting an offering, and these risks could result in a
material adverse change in our operations and the value of our Shares, significantly limit or completely hinder our ability to offer or
continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. See “ Item
3. Key Information - D. Risk Factors - Risks Related to Doing Business in China - The Chinese government
may exert substantial influence over the manner in which we must conduct our business activities. We are currently not required to
obtain approval from Chinese authorities to issue securities to foreign investors, however, if our subsidiaries or the holding company
were required to obtain approval in the future and were denied permission from Chinese authorities to list on U. S. exchanges, we will
not be able to continue listing on U. S. exchange, which would materially affect the interest of the investors.”

Compliance with Foreign Investment

All limited liability companies
formed and operating in the PRC are governed by the Company Law of the People’s Republic of China (the “ Company Law”),
which was amended and promulgated by the Standing Committee of the National People’s Congress on October 26, 2018 and came into
effect on the same day. Foreign invested enterprises must also comply with the Company Law, with exceptions as specified in the relevant
foreign investment laws. Under our corporate structure as of the date of this Annual Report, 100% of the equity interests of Powerbridge
Zhuhai are entirely and indirectly held by our Company through Powerbridge HK. Therefore, Powerbridge Zhuhai, a wholly foreign-owned enterprise
(“ WFOE”) of Powerbridge HK, should be regarded as a foreign-invested enterprise and comply with both the Company Law and other
applicable foreign investment laws.

With respect to the establishment
and operation of WFOEs, the MOFCOM, and the National Development and Reform Commission (the “ NDRC”), promulgated the Catalogue
of Industries for Guiding Foreign Investment (the “ Catalogue”), as amended