Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 2

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 2
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  Our                                                                                                                                          

  Recent                                                                                                                                      
  regulatory initiatives implemented by the PRC competent government authorities on cyberspace data security may have introduced uncertainty  
  in our business operations and compliance status, which could result in materially adverse impact on our business, results of operations    
  and our listing on Nasdaq.                                                                                                                  
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  We                                                                                                                                          
  may be adversely affected by the complexity and uncertainties of and changes in PRC regulation of Internet business and related companies.  
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  U. S.                                                                                

  We                                                                                                                                          

Risks Related to Our Business and Industry

Economic uncertainties or downturns could materially adversely
affect our business.

Current or future economic
uncertainties or downturns could adversely affect our business and operating results. Negative conditions in the general economy both
in China and abroad, including conditions resulting from changes in gross domestic product growth, the continued sovereign debt crisis,
financial and credit market fluctuations, political deadlock, natural catastrophes, pandemics, warfare and terrorist attacks on the United
States, Europe, the Asia Pacific region or elsewhere, could cause a decrease in business investments, including corporate spending on
business intelligence software in general and negatively affect the rate of growth of our business.

General worldwide economic
conditions may experience significant downturns and may be unstable. These conditions make it extremely difficult for our customers and
us to forecast and plan future business activities accurately, and they could cause customers to re-evaluate their decisions to subscribe
to our platform, which could delay and lengthen our sales cycles or result in cancellations of planned purchases. Furthermore, during
challenging economic times, customers may tighten their budgets and face issues in gaining timely access to sufficient credit, which could
result in an impairment of their ability to make timely payments to us. In turn, we may be required to increase our allowance for doubtful
accounts, which would adversely affect our financial results.

To the extent subscriptions
to our system solutions are perceived by customers and potential customers to be discretionary, our revenue may be disproportionately
affected by delays or reductions in general information technology spending. Moreover, competitors may respond to market conditions by
lowering prices and attempting to lure away our customers. In addition, the increased pace of consolidation in certain industries may