Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 6

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 6
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 U. S. exchange in the future, and even when such permission is obtained,
whether it will be rescinded. If we, our subsidiaries, or the VIE and its subsidiaries do not receive or maintain such permissions or
approvals, inadvertently conclude that such permissions or approvals are not required, or applicable laws, regulations, or interpretations
change and we are required to obtain such permissions or approvals in the future, it could significantly limit or completely hinder our
ability to offer or continue to offer our securities to investors and cause the value of our securities to significantly decline or become
worthless.

Dividend Distribution and Cash Transfer
Between the Holding Company, Subsidiary and VIE.

We are an online provider of collectibles and
artwork e-commerce services and we facilitate trading by individual and institutional customers of all kinds of collectibles, artworks
and certain commodities on our online platform owned by our subsidy in Hong Kong, namely the China International Assets and Equity of
Artworks Exchange Limited. We also provide online and offline integrated marketing, warehouse storage and technical maintenance services
to our customers through the VIE and its subsidiaries in China.

Our PRC operating entities receive their revenues
in RMB. Under our current corporate structure, to fund any cash and financing requirements we may have, the Company may rely on certain
dividend payments from our subsidiaries in Hong Kong and WFOE in China. Our WFOE receives payments from Jiangsu Yanggu, pursuant to the
VIE Agreements. WFOE may make distribution of such payments to Oriental Culture HK as dividends.

Under existing PRC foreign exchange regulations,
payments of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made
in foreign currencies without prior approval from State Administration of Foreign Exchange or SAFE by complying with certain procedural
requirements. Therefore, our PRC subsidiary, WFOE is able to pay dividends in foreign currencies to us without prior approval from SAFE,
subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign exchange
regulations, such as the overseas investment registrations by the shareholders of the Company who are PRC residents. Approval from or
registration with appropriate government authorities is, however, required where the RMB is to be converted into foreign currency and
remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may
also at its discretion restrict access in the future to