Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 125

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 125
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 to revenue contracts and purchase
cost of products.

Our cost of revenues increased by approximately $6.7 million or 99.6%
to approximately $13.4 million for the year ended December 31, 2023 from approximately $6.7 million for the year ended December 31, 2022,
which was in line with increased revenue, mainly attributable to an increase of $6.8 million in cost of revenue from application development
services and an increase of approximately $0.4 million in cost of revenue from consulting and technical support services. Our cost of
revenue from application development services, consulting and technical support services, subscription services, trading and others was
approximately $9.2 million, $1.4 million, $0.1 million, $2.5 million and 0.2 million for the year ended December 31, 2023, respectively,
as compared to approximately $2.4 million, $1.0 million, $0.1 million and $3.2 million and $nil for the year ended December 31, 2022,
respectively.

Gross profit

                                                 For the Years Ended                                                                
                                                 December 31,                                                                       
                                                 2023                                              2022                             
  GROSS PROFIT                                   Gross                                             Gross                            
                                                 Profit                                            Profit                           
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Application development services               $                          543,214       5.6      $           1,403,739      36.5  
  Consulting and technical support services                               2,204,965      61.1                  1,554,800      61.2  
  Subscription services                                                     592,437      85.2                    654,027      86.2  
  Trading revenue                                                            45,456       1.8                    154,855       4.6  
  Others revenue                                                             34,124      17.9                          -         -  
  Total gross profit                             $                        3,420,196      20.3      $           3,767,421      35.9  

Our gross profit decreased
by approximately $0.3 million or 9.2% from approximately $3.8 million for the year ended December 31, 2022 to approximately $3.4 million
for the year ended December 31, 2023. Gross margin as a