Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 26

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 26
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. S. dollars we received from offerings into for our operations, appreciation of the RMB against the U. S.
dollar would have an adverse effect on the RMB amount we received from the conversion. Conversely, if we decide to convert our RMB into
U. S. dollars for the purpose of making payments for dividends on our Ordinary Shares or for other business purposes, appreciation of the
U. S. dollar against the RMB would have a negative effect on the U. S. dollar amount available to us. Furthermore, appreciation or depreciation
in the value of the RMB relative to the U. S. dollar would affect our financial results reported in U. S. dollar terms without giving effect
to any underlying change in our business or results of operations. We cannot predict the impact of future exchange rate fluctuations on
our results of operations and may incur net foreign exchange losses in the future. In addition, our foreign currency exchange losses may
be magnified by PRC exchange control regulations that restrict our ability to convert into foreign currencies.

Adverse developments affecting the financial
services industry, such as actual events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional
counterparties, could adversely affect our current and projected business operations and our financial condition and results of operations.

Adverse developments that
affect financial institutions, transactional counterparties or other third parties, or concerns or rumours about any events of these kinds
or other similar risks, have in the past and may in the future lead to market-wide liquidity problems. For example, on March 10, 2023,
Silicon Valley Bank (“ SVB”) was closed by the California Department of Financial Protection and Innovation, which appointed
the Federal Deposit Insurance Corporation (“ FDIC”) as receiver. Similarly, on March 12, 2023, Signature Bank and Silvergate
Capital Corp. were each swept into receivership. The U. S. Department of the Treasury, the Federal Reserve and the FDIC released a statement
that indicated that all depositors of SVB would have access to all of their money after only one business day of closure, including funds
held in uninsured deposit accounts.

Inflation and rapid increases
in interest rates have led to a decline in the trading value of previously issued government securities with interest rates below current
market interest rates. Although the U. S. Department of Treasury, FDIC and Federal Reserve Board have announced a program to provide up
to $25 billion of loans to financial institutions secured