Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 54

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 54
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bound Data Transfer
Security Assessment (Version 1), which provides that acts of outbound data transfer include (i) overseas transmission and storage by data
processors of data generated during mainland China domestic operations; (ii) the access to, use, download or export of the data collected
and generated by data processors and stored in mainland China by overseas institutions, organizations or individuals; and (iii) other
acts as specified by the CAC. The Revised Review Measures and the Draft Regulations remain unclear on whether the relevant requirements
will be applicable to companies, which have been listed in the United States, such as us. They also remain uncertain whether the future
regulatory changes would impose additional restrictions on companies like us. We cannot predict the impact of the Revised Review Measures
and the Draft Regulations, if any, at this stage, and we will closely monitor and assess any development in the rule-making process.

We have been closely monitoring
the development in the regulatory landscape in China, particularly regarding the requirement of approvals, including on a retrospective
basis, from the CSRC, the CAC or other PRC authorities, as well as regarding any annual data security review or other procedures that
may be imposed on us. If any approval, review or other procedure is in fact required, we are not able to guarantee that we will obtain
such approval or complete such review or other procedure timely or at all. For any approval that we may be able to obtain, it could nevertheless
be revoked and the terms of its issuance may impose restrictions on our operations and offerings relating to our securities.

Since these regulations are
relatively new and remain unclear on how they will be interpreted, amended and implemented by the PRC government authorities, it remains
uncertain whether we can obtain the specific regulatory approvals from, or complete the required filings with the CSRC, CAC or any other
PRC government authorities for our future securities offering or for foreign investment in China-based issuers in a timely basis or at
all. If we are unable to obtain such approvals or complete such filings, or such approvals or filings are rescinded even if obtained,
our ability to offer or continue to offer securities to investors will be significantly limited or completely hindered and the value of
such securities may be significantly declined or become worthless. In addition, implementation of industry-wide regulations directly targeting
our operations could result in adverse effect on the value of our securities. Therefore, investors of our Company and our business face
potential uncertainty from actions taken by the PRC government affecting our