Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 6

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 6
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 portion of our revenues from a small number of major customers. For the year ended December
31, 2024, one customer accounted for 36.8% of the Company’s total revenues. For the year ended December 31, 2023, three customers
accounted for 27.1%, 15.5% and 15.1% of the Company’s total revenues, respectively. For the year ended December 31, 2022, one customer
accounted for 31.8% of the Company’s total revenues.

Our ability to maintain close
relationships with major customers is essential to the growth and profitability of our business. However, the volume of work performed
for a specific customer is likely to vary from year to year, especially since we are generally not our customers’ exclusive technology
services provider and we do not have long-term commitments with any of our customer to purchase our services. A major customer in one
year may not provide the same level of revenues for us in any subsequent year. The services that we provide to our customers, and the
revenues and income from those services, may decline or vary as the type and quantity of services we provide changes over time. In addition,
our reliance on any individual customer for a significant portion of our revenues may give that customer a certain degree of pricing leverage
against us when negotiating contracts and terms of service. In addition, a number of factors other than our performance could cause the
loss of or reduction in business or revenues from a customer, and these factors are not predictable. These factors may include organization
restructuring, pricing pressure, changes to its technology strategy, switching to another services provider or returning work in-house.
The loss of any of our major customers could adversely affect our financial condition and results of operations.

We may be forced to reduce the prices of
our services due to increased competition and reduced bargaining power with our customers, which could lead to reduced revenues and profitability.

The software application and
technology service industry in China is developing rapidly and related technology trends are constantly evolving. This results in the
frequent introduction of new services and significant price competition from our competitors. We may be unable to offset the effect of
declining average sales prices through increased sales volumes and/or reductions in our costs. Furthermore, we may be forced to reduce
the prices of our services in response to offerings made by our competitors. Finally, we may not have the same level of bargaining power
we have enjoyed in the past when it comes to negotiating for