Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 17

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 17
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 our business.

We believe that our culture
has been and will continue to be a key contributor to our success. We have optimized our operations in 2024 fiscal year and the number
of our total employees decreased from 178 in December 2023 to 137 in December 2024. We expect to continue to adjust our workforce according
to operational needs. If we do not continue to maintain our corporate culture as we grow, we may be unable to foster the innovation, creativity,
and teamwork we believe we need to support our growth. Our substantial anticipated headcount growth and our transition from a private
company to a public company may result in a change to our corporate culture, which could harm our business.

Our success depends substantially on the
continuing efforts of our senior executives and other key personnel, and our business may be severely disrupted if we lose their services.

Our future success heavily
depends upon the continued services of our senior executives and other key employees. If one or more of our senior executives or key employees
are unable or unwilling to continue in their present positions, it could disrupt our business operations, and we may not be able to replace
them easily or at all. In addition, competition for senior executives and key personnel in our industry is intense, and we may be unable
to retain our senior executives and key personnel or attract and retain new senior executive and key personnel in the future, in which
case our business may be severely disrupted, and our financial condition and results of operations may be materially and adversely affected.
If any of our senior executives or key personnel joins a competitor or forms a competing company, we may lose customers, suppliers, know-how
and key professionals and staff members to them. Also, if any of our business development managers, who generally keep a close relationship
with our customers, joins a competitor or forms a competing company, we may lose customers, and our revenues may be materially and adversely
affected. Additionally, there could be unauthorized disclosure or use of our technical knowledge, practices or procedures by such personnel.
All of our executives and key personnel have entered into employment agreements with us that contain non-competition provisions, non-solicitation
and nondisclosure covenants. However, if any dispute arises among our executive officers, key personnel and us, such non-competition,
non-solicitation and nondisclosure provisions might not provide effective protection to us, especially in China, where most of these executive
officers and key employees reside, in light of the uncertainties with respect to the