Company: XTKG
Filing Date: 2025-07-17
Form Type: 424B5
Source: 0001213900-25-064921
Chunk: 52

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-07-17
Form: 424B5
Chunk 52
---
 most recent annual report on Form 20-F. Recent developments with
respect to audits of China-based companies may still also create uncertainty about the ability of our auditor to fully cooperate with
the PCAOB’s inspection requests without the approval of the relevant PRC authorities. The delisting of our ordinary shares, or
the threat of their being delisted, may have a material adverse impact on our listing and trading in the U.S. and the trading prices
of our ordinary shares.

Our ability to pay dividends
to the shareholders and to service any debt it may incur may depend upon dividends paid by our PRC subsidiaries. If any of our subsidiaries
incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to us. Under
PRC laws and regulations, our PRC subsidiaries are subject to certain restrictions with respect to payment of dividends or other transfers
of any of their net assets to us. Our PRC subsidiaries are permitted to pay dividends only out of their retained earnings, if any, as
determined in accordance with PRC accounting standards and regulations. PRC laws also require a foreign-invested enterprise to set aside
at least 10% of its after-tax profits as the statutory common reserve fund until the cumulative amount of the statutory common reserve
fund reaches 50% or more of such enterprise’s registered capital, if any, to fund its statutory common reserves, which are not
available for distribution as cash dividends. Remittance of dividends by a wholly foreign-owned enterprise out of mainland China is also
subject to examination by the banks designated by the PRC State Administration of Foreign Exchange. These restrictions are benchmarked
against the paid-up capital and the statutory reserve funds of our PRC subsidiaries. To the extent cash in our business is in China or
in an entity in mainland China, the funds may not be available to fund operations or for other use outside of mainland China due to interventions
in or the imposition of restrictions and limitations by the PRC government on our ability to transfer cash. As a result, our ability
to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our
business may be materially and adversely affected.

Neither the Securities and Exchange Commission, Cayman Islands, nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

<div align='center'>The date of this