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

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 25
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 governmental agencies or state-owned or affiliated organizations and may be held liable for
the corrupt or other illegal activities of these third-party business partners and intermediaries, our employees, representatives, contractors,
channel partners, and agents, even if we do not explicitly authorize such activities. While we have policies and procedures to address
compliance with such laws, we cannot assure you that all of our employees and agents will not take actions in violation of our policies
and applicable law, for which we may be ultimately held responsible. Any violation of the applicable anti-bribery, anti-corruption laws,
and anti-money laundering laws could result in whistleblower complaints, adverse media coverage, investigations, severe criminal or civil
sanctions, or suspension or debarment from government contracts, all of which may have an adverse effect on our reputation, business,
operating results and prospects.

Fluctuation in the value of the Renminbi
and other currencies may have a material adverse effect on the value of your investment.

Our financial statements are
expressed in U. S. dollars. However, a majority of our revenues and expenses are denominated in Renminbi. Our exposure to foreign exchange
risk primarily relates to the limited cash denominated in currencies other than the functional currencies of each entity. We do not believe
that we currently have any significant direct foreign exchange risk and have not hedged exposures denominated in foreign currencies or
any other derivative financial instruments. However, the value of your investment in our Ordinary Shares will be affected by the foreign
exchange rate between U. S. dollars and RMB because the primary value of our business is effectively denominated in RMB, while the Ordinary
Shares will be traded in U. S. dollars.

The value of the RMB against
the U. S. dollar and other currencies is affected by, among other things, changes in China’s political and economic conditions and
China’s foreign exchange policies. The People’s Bank of China regularly intervenes in the foreign exchange market to limit
fluctuations in RMB exchange rate and achieve certain exchange rate targets, and through such intervention kept the U. S. dollar-RMB exchange
rate relatively stable.

As we may rely on dividends
paid to us by our PRC subsidiaries and branches, any significant revaluation of the RMB may have a material adverse effect on our revenues
and financial condition, and the value of any dividends payable on our Ordinary Shares in foreign currency terms. For example, to the
extent that we need to convert U