Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 7

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 7
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 the prices of our services, all of which could lead to reduced revenues and
profitability.

A portion of our income is generated, and
will in the future continue to be generated, on a project basis with a fixed price; we may not be able to accurately estimate costs and
determine resource requirements in relation to our projects, which would reduce our margins and profitability.

A portion of our income is
generated, and will continue to be generated, from fees we receive for our projects at a fixed price. Our projects often involve complex
technologies, utilizing workforces with different skill sets and competencies, and must be completed within compressed timeframes and
meet customer requirements that are subject to changes and increasingly stringent. In addition, some of our fixed-price projects are multi-year
projects that require us to undertake significant projections and planning related to resource utilization and costs. If we fail to accurately
assess the time and resources required for completing projects and to price our projects profitably, our business, results of operations
and financial condition could be adversely affected.

Our revenues and results of operations are
affected by seasonal trends.

Our business is affected by
seasonal trends. In particular, our revenues are typically progressively higher in the second, third and fourth quarters of each year
compared to the first quarter of each year due to seasonal trends, such as: (i) a general slowdown in business activities and a reduced
number of working days during the first quarter of each year as a result of the Chinese New Year holiday; and (ii) our customers in general
tend to spend their technology and software budgets in the second half of the year and in particular the fourth quarter. Other factors
that may cause our quarterly operating results to fluctuate include, among others, changes in general economic conditions in China and
the impact of unforeseen events. We believe that our revenues will continue to be affected in the future by seasonal trends. As a result,
you may not be able to rely on period-to-period comparisons of our operating results as an indication of our future performance, and we
believe it is more meaningful to evaluate our business on an annual basis.

If we are unable to collect our receivables
from our existing customers, our results of operations and cash flows could be adversely affected.

Our business depends on our
ability to successfully obtain payment from our customers of the amounts they owe us for our services. As of December 31, 2024, 2023 and
2022, our accounts rece