Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 50

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 3
Chunk 50
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 BZ). On July 24, 2021, the General Office of the Communist Party of China Central Committee
and the General Office of the State Council jointly released the Guidelines for Further Easing the Burden of Excessive Homework and Off-campus
Tutoring for Students at the Stage of Compulsory Education, pursuant to which foreign investment in such firms via mergers and acquisitions,
franchise development, and variable interest entities are banned from this sector.

On August 17, 2021, the State
Council promulgated the Regulations on the Protection of the Security of Critical Information Infrastructure (the “ Regulations”),
which took effect on September 1, 2021. The Regulations supplemented and specified the provisions on the security of critical information
infrastructure as stated in the Cybersecurity Review Measures. The Regulations provide, among others, that protection department of certain
industry or sector shall notify the operator of the critical information infrastructure in time after the identification of certain critical
information infrastructure.

On August 20, 2021, the SCNPC
promulgated the Personal Information Protection Law of the PRC (the “ Personal Information Protection Law”), which took effect
in November 2021. As the first systematic and comprehensive law specifically for the protection of personal information in the PRC, the
Personal Information Protection Law provides, among others, that (i) an individual’s consent shall be obtained to use sensitive
personal information, such as biometric characteristics and individual location tracking; (ii) personal information operators using sensitive
personal information shall notify individuals of the necessity of such use and impact on the individual’s rights; and (iii) where
personal information operators reject an individual’s request to exercise his or her rights, the individual may file a lawsuit with
a People’s Court.

As such, the Company’s
business segments may be subject to various government and regulatory interference in the provinces in which they operate. The Company
could be subject to regulations by various political and regulatory entities, including various local and municipal agencies and government
sub-divisions. The Company may incur increased costs necessary to comply with the existing and newly adopted laws and regulations or penalties
for any failure to comply. Additionally, the governmental and regulatory interference could significantly limit or completely hinder our
ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

Furthermore, we are required
to file with the CSRC within 3 working days after the subsequent securities offering is completed and we might face