Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 4

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 4
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 our competitors and the capabilities of our
sales and marketing teams. If we are not able to continue to attract new customers or to grow revenues from our existing customers, we
may not be able to grow our revenues as quickly as we anticipate or at all.

We may be unable to effectively manage our
expansion for the anticipated growth, which could place significant strain on our management personnel, systems and resources. We may
not be able to achieve anticipated growth, which could materially and adversely affect our business and prospects.

As of the date of this Annual
Report, we have 137 full-time employees. As of the date of this Annual Report, we have six branches, of which are located in China (Shenzhen,
Guangzhou, Changsha, Wuhan, Nanning, Hangzhou) and maintain offices in Guangzhou, Shenzhen, Changsha, Wuhan, Nanning and Hangzhou to serve
different customers in various geographic locations. In order to pursue existing and potential market opportunities, we plan to expand
our business including (i) establishing new offices and expanding our current offices in China; (ii) exploring and expanding into international
markets; and (iii) upgrading our existing services and introducing new services. We are facing the following challenges with respect to
our planned expansion:

  recruiting,                                                                                              

  creating                                   

  managing                                                        

  maintaining                                    

  coordinating                                                                           

  integrating                                                                          

  developing                                                                                                                              

  adhering                                                                                                                            

Moreover, as we introduce
new services or enter into new markets, we may face new market, technological and operational risks and challenges with which we are unfamiliar,
and it may require substantial management efforts and skills to mitigate these risks and challenges. As a result of any of these problems
associated with expansion, our business, results of operations and financial condition could be materially and adversely affected. Furthermore,
we may not be able to achieve anticipated growth, which could materially and adversely affect our business and prospects.

We face risks associated with having an
extended selling and implementation cycle for our services that require us to make significant resource commitments prior to realizing
revenues for those services.

We have an extended selling
cycle for certain of our software applications and technology services, which requires significant investment of capital, human resources
and time by both our customers and us. Before committing to use our services, potential customers require us to expend substantial time
and resources to educate them on the value of our services and our ability to meet their requirements. Therefore, our selling cycle is