Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 46

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 46
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 officers and directors) or corporate collaboration and/or licensing
arrangements. We will also need to raise additional funds if we choose to continue to expand our operational development efforts more
rapidly than we presently anticipate.

Our dual-class voting structure will limit
your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders
of our Class A ordinary shares may view as beneficial.

Our company is controlled
through a dual class voting structure. Our ordinary shares are divided into Class A ordinary shares and Class B ordinary shares. Holders
of Class A ordinary shares are entitled to one vote per share in respect of matters requiring the votes of shareholders, while holders
of Class B ordinary shares are entitled to thirty votes per share, subject to certain exceptions. Each Class B ordinary share is convertible
into one Class A ordinary share at any time by the holder thereof, while Class A ordinary shares are not convertible into Class B ordinary
shares under any circumstances. Upon any direct or indirect transfer of Class B ordinary shares or associated voting power by a holder
thereof to any person or entity which is not an affiliate of such holder, such Class B ordinary shares will be automatically and immediately
converted into the equal number of Class A ordinary shares. As a result, Mr. Stewart Lor, holding 12,195 (post-reverse stock split adjusted
to 2,032) Class B ordinary shares might have considerable influence over matters such as approving material mergers, acquisitions or other
business combination transactions. This concentrated control will limit your ability to influence corporate matters and could also discourage
others from pursuing any potential merger, takeover or other change of control transactions, which could have the effect of depriving
the holders of our Class A ordinary shares of the opportunity to sell their shares at a premium over the prevailing market price.

The trading prices of our ordinary shares
have been and are likely to continue to be volatile.

The trading price of our ordinary
shares has been volatile since our ordinary shares started to trade on the Nasdaq, and could fluctuate widely due to factors beyond our
control. This may happen because of broad market and industry factors, including the performance and fluctuation of the market prices
of other companies with operations located in mainland China, or because of trends in the global economy in general or the Chinese economy,
or because of international geopolitical tensions. In addition to market and industry factors, the prices and trading volumes for our
listed securities may be highly volatile for factors specific to our own operations, including the following