Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 126

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 5
Chunk 126
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 percent of overall revenue for the years ended December 31, 2023 and 2022 was
20.3% and 35.9%, respectively.

Gross profit for application
development services decreased by approximately $0.9 million or 61.3% from $1.4 million for the year ended December 31, 2022 to approximately
$0.5 million for the year ended December 31, 2023, the decrease was driven by increased cost resulted from the outsourcing of development
service in several projects. Gross profit margin for the years ended December 31, 2023 and 2022 was 5.6% and 36.5%, respectively.

Gross profit for consulting
and technical support services increased by approximately $0.7 million or 41.8% from approximately $1.6 million for the year ended December
31, 2022 to approximately $2.2 million for the year ended December 31, 2023. Gross profit margin for the years ended December 31, 2023
and 2022 was 61.1% and 61.2%, respectively.

Gross profit for subscription
services decreased by $0.1 million or 9.4% from $0.7 million for the year ended December 31, 2022 to $0.6 million for the year ended December
31, 2023. Gross profit margin was 85.2% and 86.2% for the years ended December 31, 2023 and 2022 respectively.

Gross profit for trading revenue
was $45,456 and $154,855 for the years ended December 31, 2023 and 2022, respectively; gross profit margin was 1.8% and 4.6% for the years
ended December 31, 2023 and 2022, respectively.

Gross profit for other revenue
was $34,124 for the years ended December 31, 2023.

Operating Expenses

                                        For the Years Ended                                                                                   
                                        December 31,                                                                                          
                                        2023                                     2022                      Change                             
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  OPERATING EXPENSES:                                                                                                                         
  Selling and marketing                 $                         1,480,732      $          1,956,811      $             (476,079      (24.3