Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 37

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 37
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 registration of overseas investments before it makes any capital contribution to a special purpose vehicle, or SPV,
using his or her legitimate domestic or offshore assets or interests. SPVs are offshore enterprises directly established or indirectly
controlled by domestic residents for the purpose of investment and financing by utilizing domestic or offshore assets or interests they
legally hold. Following any significant change in a registered offshore SPV, such as capital increase, reduction, equity transfer or swap,
consolidation or division involving domestic resident individuals, the domestic individuals shall amend the registration with SAFE. Where
an SPV intends to repatriate funds raised after completion of offshore financing to the PRC, it shall comply with relevant PRC regulations
on foreign investment and foreign debt management. A foreign-invested enterprise established through return investment shall complete
relevant foreign exchange registration formalities in accordance with the prevailing foreign exchange administration regulations on foreign
direct investment and truthfully disclose information on the actual controller of its shareholders.

If any shareholder who is a PRC resident (as determined
by the Circular No. 37) holds any interest in an offshore SPV and fails to fulfil the required foreign exchange registration with the
local SAFE branches, the PRC subsidiaries of that offshore SPV may be prohibited from distributing their profits and dividends to their
offshore parent company or from carrying out other subsequent cross-border foreign exchange activities. The offshore SPV may also be restricted
in its ability to contribute additional capital to its PRC subsidiaries. Where a domestic resident fails to complete relevant foreign
exchange registration as required, fails to truthfully disclose information on the actual controller of the enterprise involved in the
return investment or otherwise makes false statements, the foreign exchange control authority may order them to take remedial actions,
issue a warning, and impose a fine of less than RMB 300,000 (approximately $43,000) on an institution or less than RMB 50,000 (approximately
$7,000) on an individual.

Circular 13 was issued by SAFE on February 13,
2015, and became effective on June 1, 2015. Pursuant to Circular 13, a domestic resident who makes a capital contribution to an SPV using
his or her legitimate domestic or offshore assets or interests is no longer required to apply to SAFE for foreign exchange registration
of his or her overseas investments. Instead, he or she shall register with a bank in the place where the assets or interests of the domestic
enterprise in which he or she has interests are located if