Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 116

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 116
---
on a straight-line basis or based on the actual usage as customers receive and consume benefits of such services.

For the year ended December
31, 2024, our subscription service revenue was approximately $0.6 million as compared to approximately $0.7 million for the year ended
December 31, 2023.

Trading revenue

We start to sell products to its customers for the year ended December
31, 2021. Revenue from trading revenue was approximately $2.1 million for the year ended December 31, 2024 as compared to approximately
$2.5 million for the year ended December 31, 2023.

Others revenue

We began to receive income
from other fields, such as membership fee, the revenue of which was approximately $0.04 million and approximately $0.2 million for the
years ended December 31, 2024 and 2023, respectively, and represented 0.3% and 1.1% of our total revenue for the years ended December
31, 2024 and 2023, respectively.

Cost of Revenues

Our cost of revenues mainly
consists of compensation benefit expenses for our professionals, material cost, travel expenses related to revenue contracts and purchase
cost of products.

Our cost of revenues decreased by approximately $6.4 million or 47.9%
to approximately $7.0 million for the year ended December 31, 2024 from approximately $13.4 million for the year ended December 31, 2023,
which was mainly attributable to a decrease of $5.8 million in cost of revenue from application development services and a decrease of
approximately $0.5 million in cost of revenue from trading. Our cost of revenue from application development services, consulting and
technical support services, subscription services, trading and others was approximately $3.4 million, $1.4 million, $0.05 million, $2.0
million and $0.1 million for the year ended December 31, 2024, respectively, as compared to approximately $9.2 million, $1.4 million,
$0.1 million, $2.5 million and $0.2 million for the year ended December 31, 2023, respectively.

Gross profit

                                                 For the Years Ended                                                                 
                                                 December 31,                                                                        
                                                 2024                                               2023                             
  GROSS PROFIT                                   Gross                                              Gross                            
                                                 Profit                                             Profit                           
 �