Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 97

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 4
Chunk 97
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 R& D organizations
consist of dedicated engineering and technology employees, who are responsible for the design, development, testing and delivery of all
aspects of our technologies, solutions and services. As of the date of this Annual Report, our team consists of 62 full-time R& D personnel.
We incurred expenses of $4.1 million, $4.8 million and $3.5 million in R& D for the fiscal year ended December 31, 2024, 2023 and 2022,
respectively.

The majority of our R& D
team is based in our Zhuhai office and to a lesser degree in our branch offices. Our team is further apportioned into smaller agile development
groups to foster continuous innovation and rapid delivery.

We believe we have a strong
R& D culture that rapidly and consistently delivers high quality products. We plan to continue to invest substantial resources in R& D
to drive core technology innovation and bring new solutions and services to market.

Competition

The market for digital solutions
is highly competitive and fragmented. We face intensive competition. Our main sources of current and potential competition fall into the
following categories:

  Regional global trade application providers offering regulatory compliance, trade logistics and trade processing software and systems.  

  Software vendors providing online or cloud-based single point or single feature functional global trade application products and services.  

  Online global trade hubs or portals offering specific global trade transactional and processing application products and services.  

  Enterprise resource planning, supply chain and logistics software application companies offering global trade software, systems and services.  

  Government organizations providing global trade related regulatory compliance and trade logistics applications and systems.  

  Emerging blockchain, artificial intelligence and IoT technology providers offering technologies and software for global trade applications.  

We believe the following competitive
attributes are necessary for us to compete successfully in our industry:

  Deep domain knowledge, industry experience and product expertise in global trade software applications and system integration to address customer needs.  

  Enablement of emerging and disruptive technologies to develop and provide global trade software applications and services.  

  Enterprise grade performance level in scalability, reliability and security as well as cost of ownership and ease of deployment.  

  Breadth, depth and quality of application features and functionalities that are able to operate in multiple infrastructures such as in cloud, on premises or both.  

  Capability of technology platforms in integrating and interoperating with legacy and other enterprise infrastructures and third-party applications.  

  Strength of sales and marketing as well as customer