Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 76

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 76
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 their affiliates that are located in mainland China. The delisting of our Ordinary
Shares, or the threat of such delisting, may materially and adversely affect the value of your investment. Additionally, the inability
of the PCAOB to conduct inspections deprives our investors of the benefits of such inspections.

The HFCAA was enacted on December
18, 2020. The HFCAA states if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has
not been subject to inspection by the PCAOB for three consecutive years beginning in 2021, the SEC shall prohibit our Ordinary Shares
from being traded on a national securities exchange or in the over the counter trading market in the U. S.

On March 18, 2021, the SEC
adopted on an interim basis rules disclosure requirements for companies with PCAOB member auditors whom the PCAOB has determined that
it cannot inspect their operations within a foreign jurisdiction, or the Covered Issuers. Covered Issuers are required to disclose in
their annual reports on Form 20 F: (i) that, during the period covered by the form, the registered public accounting firm has prepared
an audit report for the issuer; (ii) the percentage of the shares of the issuer owned by governmental entities in the foreign jurisdiction
in which the issuer is incorporated or otherwise organized; (iii) whether governmental entities in the applicable foreign jurisdiction
with respect to that registered public accounting firm have a controlling financial interest with respect to the issuer; (iv) the name
of each official of the Chinese Communist Party who is a member of the board of directors of the issuer or the operating entity with respect
to the issuer; and (v) whether the articles of incorporation of the issuer (or equivalent organizing document) contains any charter of
the Chinese Communist Party, including the text of any such charter. Furthermore, on June 22, 2021, the U. S. Senate passed the Accelerating
Holding Foreign Companies Accountable Act, or the AHFCAA, which would amend the HFCAA and require the SEC to prohibit an issuer’s
securities from trading on any U. S. stock exchanges if its auditor is not subject to PCAOB inspections for two consecutive years instead
of three. On September 22, 2021, the PCAOB adopted rules governing its procedures for making determinations as to its inability to inspect
or investigate registered firms headquartered in a particular foreign jurisdiction or which has an office in a foreign jurisdiction, or