Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 15

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 15
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 market for BaaS services is largely unproven
and is subject to a number of risks and uncertainties.

The market for BaaS services
is new and less mature than traditional on-premises software applications, and the adoption rate for BaaS services may be slower among
customers with business practices requiring highly customizable application software. Our success with BaaS services will depend to a
substantial extent on the widespread adoption of BaaS services in general, but we cannot be certain that the trend of adoption of BaaS
services will continue in the future. In particular, many organizations have invested substantial personnel and financial resources in
integrating traditional software into their businesses over time, and some may be reluctant or unwilling to migrate to BaaS. It is difficult
to predict customer adoption rates and demand for our BaaS services, the future growth rate and size of the BaaS services market or the
entry of competitive applications. The expansion of the BaaS services market depends on a number of factors, including the cost, performance
and perceived value associated with BaaS. If BaaS services do not continue to achieve market acceptance, or there is a reduction in demand
for BaaS services caused by a lack of customer acceptance, technological challenges, weakening economic conditions, data security or privacy
concerns, governmental regulations, competing technologies and services or decreases in information technology spending, it would result
in decreased revenues and our business would be adversely affected.

It is difficult to predict our future operating
results.

Our ability to accurately
forecast our future operating results is limited and subject to a number of uncertainties, including planning for and modeling future
growth. We have encountered, and will continue to encounter, risks, and uncertainties frequently experienced by growing companies in rapidly
changing industries. If our assumptions regarding these risks and uncertainties, which we use to plan our business, are incorrect or change
due to industry or market developments, or if we do not address these risks successfully, our operating results could differ materially
from our expectations and our business could suffer.

If we have overestimated the size of our
total addressable market, our future growth rate may be limited.

We have estimated the size of our total addressable market based on
data published by third parties and internally generated data and assumptions. We have not independently verified any third-party information
and cannot be assured of its accuracy or completeness. While we believe our market size estimates are reasonable, such information is
inherently imprecise. In addition, our projections, assumptions and estimates of