Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 111

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 111
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Item 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

You should read the following
discussion and analysis of our financial condition and results of operations in conjunction with our consolidated financial statements
and the related notes included elsewhere in this Annual Report. This discussion contains forward-looking statements that involve risks
and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking
statements as a result of various factors, including those set forth under “ Risk Factors” and elsewhere in this Annual Report.

Overview

X3 Holdings Co., Ltd. (hereinafter
referred to as “we,” “our,” or the “ Company”), formerly known as Powerbridge Technologies Co., Ltd.,
is a company that was established under the laws of the Cayman Islands on July 27, 2018 as a holding company.

We are a provider of software
application and technology solutions and services to corporate and government customers engaged in global trade. All of our customers
are located in China. We currently generate most of our revenues from application development services, which represent 46.1%,58.1% and
36.7% of total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. We generate revenue from consulting and technical
support services, which represent 30.7%, 21.5% and 24.2% of our revenue for the years ended December 31, 2024, 2023 and 2022, respectively.
We also earn subscription service revenue from customers accessing our SaaS, which represent 5.2%, 4.1% and 7.2% of our revenue for the
years ended December 31, 2024, 2023 and 2022. We started to generated revenue from trading business, which represent 17.7%, 15.2% and
31.8% of total revenue for the years ended December 31, 2024, 2023 and 2022, respectively. Other revenue represented 0.3%, 1.1% and nil
of our revenue for the year ended December 31, 2024, 2023 and 2022, respectively.

Recent Developments

On May 1, 2024, we acquired
100% equity interest in Hong Kong Hongyi Holdings Limited (“ Hongyi”) and its 100% held subsidiary Shenzhen Hongchuangxin Technology
Co