Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 87

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 4
Chunk 87
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 on June 28, 2017, which came into effect on August
28, 2017. The Catalogue divides industries for foreign investment into three categories: encouraged, restricted and prohibited. Those
industries not set out in the Catalogue shall be classified as industries permitted for foreign investment. The Catalogue serves as the
main basis for management and guidance for the MOFCOM to manage and supervise foreign investments to PRC. In addition, in June 2018, MOFCOM
and NDRC promulgated the Special Management Measures (Negative List) for the Access of Foreign Investment (the “ Negative List”),
effective July 2018. The Negative List expands the scope of permitted industries by foreign investment by reducing the number of industries
that fall within the Negative List where restrictions on the shareholding percentage or requirements on the composition of board or senior
management still exists. According to the Catalogue and the Negative List, IT services, the main business that our PRC subsidiary presently
conduct, are neither restricted nor prohibited.

Emerging Growth Company Status

As a company with less than
$1.235 billion in revenue during our last fiscal year, we qualify as an “emerging growth company” as defined in the Jumpstart
Our Business Startups Act (the “ JOBS Act”), enacted in April 2012, and may take advantage of reduced reporting requirements
that are otherwise applicable to public companies. These provisions include, but are not limited to:

  being permitted to present only two years of audited financial statements and only two years of related Management’s Discussion and Analysis of Financial Condition and Results of Operations in ...  

  not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;  

  reduced disclosure obligations regarding executive compensation in periodic reports, proxy statements and registration statements; and  

  exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.  

We may take advantage of these
provisions until the last day of our fiscal year following the fifth anniversary of the date of the first sale of our common equity securities
pursuant to an effective registration statement under the Securities Act of 1933, as amended. However, if certain events occur before
the end of such five-year period, including if we become a “large accelerated filer”, our annual gross revenues exceed $1.235
billion or we issue more than $1.