Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 28

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 28
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 make payments when due, or any breach or default by a partner or supplier, or the loss of any significant
supplier relationships, may have a material adverse impact on our business.

As we plan to expand internationally, our
business will become more susceptible to risks associated with international operations.

Historically, we have generated
all of our revenue from customers in PRC. We plan to expand our market coverage internationally, with a focus on B& R countries, including
countries in Asia and Eastern Europe, Middle East, Africa and South America. Conducting international operations subjects us to risks
that we have not generally faced in the PRC. These risks include:

  challenges                                                                                       

  heightened                                                                                                                               
  risks of unethical, unfair or corrupt business practices, actual or claimed, in certain geographies and of improper or fraudulent sales  
  arrangements that may impact financial results and result in restatements of, and irregularities in, financial statements;               
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  application                                                                                                                                       

  risks                                                                                                                                 

  new                                     

  potentially                                                                                                                

  management                                                                                             

  greater                                                                                           

  the                                                                                           

  increased                                                     
  financial accounting and reporting burdens and complexities;  
 ────────────────────────────────────────────────────────────────

  lack of familiarity with local laws, customs and practices, and laws  

  uncertainties                               

  political,                                                                                   

Any of these risks could adversely
affect our business. For example, compliance with laws and regulations applicable to our international operations increases our cost of
doing business in foreign jurisdictions. We may be unable to keep pace with changes in government requirements as they change from time
to time. Failure to comply with these regulations could have adverse effects on our business. In addition, in many foreign countries it
is common for others to engage in business practices that are prohibited by our internal policies and procedures or applicable PRC laws
and regulations. As we grow, we continue to implement compliance procedures designed to prevent violations of these laws and regulations.
There can be no assurance that all of our employees, contractors, resellers, and agents will comply with the formal policies we will implement,
or applicable laws and regulations. Violations of laws or key control policies by our employees, contractors, resellers, or agents could
result in delays in revenue recognition, financial reporting misstatements, fines, penalties, or the prohibition of the import or export
of our software and services, and could have a