Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 16

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 16
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 opportunities within our market are necessarily subject
to a high degree of uncertainty and risk due to a variety of factors, including but not limited to those described in this Annual Report.
If this third-party or internally generated data prove to be inaccurate or we make errors in our assumptions based on that data, our actual
market may be more limited than our estimates. In addition, these inaccuracies or errors may cause us to misallocate capital and other
critical business resources, which could harm our business.

Even if our total addressable
market meets our size estimates and experiences growth, we may not continue to grow our share of the market. Our growth is subject to
many factors, including our success in implementing our business strategy, which is subject to various risks and uncertainties. Accordingly,
the estimates of our total addressable market included in this Annual Report should not be taken as indicative of our ability to grow
our business. For more information regarding the estimates of market opportunity and the forecasts of market growth included in this Annual
Report, see “ Business - Our Opportunity.”

We face intense competition from onshore
and offshore software application and technology service providers, and if we are unable to compete effectively, we may lose customers
and our revenues may decline.

The market for software applications and technology services is highly
competitive and we expect competition to persist and intensify. We believe that the principal competitive factors in our markets are domain
knowledge and industry expertise, breadth and depth of service offerings, quality of the services offered, reputation and track record,
marketing and selling skills, scalability of technology infrastructure and price. In the software application and technology services
market, customers tend to engage multiple service providers instead of using an exclusive service provider, which could reduce our revenues
to the extent that customers obtain services from other competing providers. Our ability to compete also depends in part on a number of
factors beyond our control, including the ability of our competitors to recruit, train, develop and retain highly skilled professionals,
the price at which our competitors offer comparable services and our competitors’ responsiveness to customer needs. Therefore, we
cannot assure you that we will be able to retain our customers while competing against such competitors. Increased competition, our inability
to compete successfully against competitors, pricing pressures or loss of market share could harm our business, financial condition and
results of operations.

Our corporate culture has contributed to
our success, and if we cannot maintain this culture as we grow, we could lose the innovation, creativity and teamwork fostered by our
culture, which could harm