Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 49

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 49
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 and guidelines will have a material impact on our business, financial condition, results of operations and prospects. If any
non-compliance is identified by the relevant authorities, we may be subject to fines and other penalties.

The General Office of the
Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Severely
Cracking Down on Illegal Securities Activities. According to Law, (the “ Opinions”), which was made available to the public
on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities, and the need to
strengthen the supervision over overseas listings by Chinese companies. Effective measures, such as promoting the construction of relevant
regulatory systems, will be taken to deal with the risks and incidents of China-concept overseas listed companies. As of the date of this
Annual Report, we have not received any inquiry, notice, warning, or sanctions from PRC government authorities in connection with the
Opinions.

On June 10, 2021, the Standing
Committee of the National People’s Congress of China (the “ SCNPC”), promulgated the PRC Data Security Law, which took
effect in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals carrying
out data activities, and introduces a data classification and hierarchical protection system based on the importance of data in economic
and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights and interests
of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC Data Security
Law also provides for a national security review procedure for data activities that may affect national security and imposes export restrictions
on certain data and information.

In early July 2021, regulatory
authorities in China launched cybersecurity investigations with regard to several China-based companies that are listed in the United
States. The Chinese cybersecurity regulator announced on July 2, 2021 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI)
and two days later ordered that the company’s app be removed from smartphone app stores. On July 5, 2021, the Chinese cybersecurity
regulator launched the same investigation on two other Internet platforms, China’s Full Truck Alliance of Full Truck Alliance Co.
Ltd. (NYSE: YMM) and KANZHUN LIMITED (Nasdaq: