Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 61

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 61
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 interests, or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed,
leaked, or illegally acquired or used. The appropriate level of protection measures is required to be taken for each respective category
of data.

While we take measures to
comply with applicable data privacy and protection laws and regulations, we cannot guarantee the effectiveness of the measures undertaken
and those implemented by us. In addition, we could be subject to new laws or regulations or the interpretation and application of existing
consumer and data protection laws or regulations. These new laws, regulations and interpretations are often uncertain and in flux and
may be inconsistent with our practices. We cannot guarantee that we will be able to maintain compliance at all times, especially in light
of the fact that laws and regulations on cybersecurity and data protection are evolving. Complying with these new or additional laws,
regulations and requirements could cause us to incur substantial costs or require us to change our business practices in a manner materially
adverse to our business.

It may be difficult for overseas regulators
to conduct investigations or collect evidence within the PRC.

Shareholder claims or regulatory investigation that are common in the
United States generally are difficult to pursue as a matter of law or practicality in China. For example, in China, there are significant
legal and other obstacles to providing information needed for regulatory investigations or litigation initiated outside China. Although
the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country
or region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in the
United States may not be efficient in the absence of a mutual and practical cooperation mechanism. Furthermore, according to Article 177
of the PRC Securities Law, which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation
or evidence collection activities within the territory of the PRC; no organization or individual is allowed to provide documents and information
related to securities business activities to overseas securities regulators without the consent of the securities regulatory authority
under the State Council and the relevant competent department under the State Council; and according to the Data Security Law, no organization
or individual within the territory of the PRC may provide foreign judicial or law enforcement authorities with data stored within the
territory of the PRC without the approval of the competent authorities of the PRC. While detailed interpretation of or implementation
rules under these regulations have yet to be promulgated, the inability of an overseas securities regulator to directly