Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 106

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 4
Chunk 106
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by the local government from time to time at locations where they operate their businesses or where they are located. According to the
Social Insurance Law, an employer that fails to make social insurance contributions may be ordered to rectify the noncompliance and pay
the required contributions within a stipulated deadline and be subject to a late fee of up to 0.05% or 0.2% per day, as the case may be.
If the employer still fails to rectify the failure to make social insurance contributions within the stipulated deadline, it may be subject
to a fine ranging from one to three times the amount overdue. According to the Regulations on Management of Housing Fund, an enterprise
that fails to make housing fund contributions may be ordered to rectify the noncompliance and pay the required contributions within a
stipulated deadline; otherwise, an application may be made to a local court for compulsory enforcement. Our PRC operating entities have
not made adequate employee benefit payments and we may be required to make up the contributions for these plans as well as to pay late
fees and fines. See “ Risks Related to Doing Business in China - Failure to make adequate contributions to various mandatory social
security plans as required by PRC regulations may subject us to penalties”.

Regulations on Intellectual Property Rights

The PRC Copyright Law, as
amended, together with various regulations and rules promulgated by the State Council and the National Copyright Administration, protect
software copyright in China. These laws and regulations establish a voluntary registration system for software copyrights administered
by the Copyright Protection Center of China. Unlike patent and trademark registration, copyrighted software does not require registration
for protection. Although such registration is not mandatory under PRC law, software copyright owners are encouraged to go through the
registration process and registered software may receive better protection. The PRC Trademark Law, as amended, together with its implementation
rules, protect registered trademarks. The Trademark Office of the State Administration for Industry and Commerce handles trademark registrations
and grants a renewable protection term of 10 years to registered trademarks.

Regulation of Foreign Currency Exchange
and Dividend Distribution

Foreign Currency Exchange. The principal regulations governing foreign currency exchange in China are the Foreign Exchange Administration Regulations, most recently
amended in August 2008. Payments of current account items, such as profit distributions and trade and service-related foreign exchange
transactions, can usually be made in foreign currencies without prior approval from the State Administration of Foreign Exchange, or SAFE,
by complying with certain procedural