Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 65

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 65
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 February 28, 2015, the SAFE promulgated a Notice on Further Simplifying and Improving
Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13, which became effective on June 1, 2015. Under SAFE Notice
13, applications for foreign exchange registration of inbound foreign direct investment and outbound overseas direct investment, including
those required under the SAFE Circular 37, will be filed with qualified banks instead of the SAFE. The qualified banks will directly examine
the applications and accept registrations under the supervision of the SAFE.

Mr. Ban Lor and Stewart Lor
are not PRC resident, thus, they are not subject to SAFE Circular 37. We have informed our shareholders that we know are PRC residents
and hold direct or indirect interests in us to make the necessary applications, filings and amendments as required under SAFE Circular
37 and other related rules. However, we may not at all times be fully aware or informed of the identities of all our beneficial owners
who are PRC residents, and we may not always be able to compel our beneficial owners to comply with the SAFE Circular 37 requirements.
As a result, we cannot assure you that all of our shareholders or beneficial owners who are PRC residents will at all times comply with,
or in the future make or obtain any applicable registrations or approvals required by, SAFE Circular 37 or other related regulations.
Failure by any such shareholders or beneficial owners to comply with SAFE Circular 37 could subject us to fines or legal sanctions, restrict
our overseas or cross-border investment activities, limit our PRC subsidiary’s ability to make distributions or pay dividends or
affect our ownership structure, which could adversely affect our business and prospects.

Furthermore, as these foreign
exchange regulations are still relatively new and their interpretation and implementation has been constantly evolving, it is unclear
how these regulations, and any future regulation concerning offshore or cross-border transactions, will be interpreted, amended and implemented
by the relevant governmental authorities. For example, we may be subject to a more stringent review and approval process with respect
to our foreign exchange activities, such as remittance of dividends and foreign-currency-denominated borrowings, which may adversely affect
our financial condition and results of operations. In addition, if we decide to acquire a PRC domestic company, we cannot assure you that
we or the owners of such company, as the case may be, will be able to obtain the necessary approvals or complete the necessary filings
and registrations required by the foreign exchange regulations. This may