Company: OCG
Filing Date: 2025-12-11
Form Type: 424B5
Source: 0001213900-25-120719
Chunk: 51

Company: Oriental Culture Holding LTD
Filing Date: 2025-12-11
Form: 424B5
Chunk 51
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 VIE and its subsidiaries in China. We currently are in the process
of developing business and services relating to NFT (non-fungible token) for cultural and artwork collections as well as a metaverse
project.

We are a holding
company incorporated in the Cayman Islands. Our securities offered in this prospectus are securities of our Cayman Islands holding
company. As a holding company with no material operations of our own, we conduct our business through our operating subsidiaries in
Hong Kong and the VIE and its subsidiaries in China. VIE structure is used to provide investors with exposure to foreign investment
in China-based companies where the business of the operating companies in China might be prohibited or restricted for foreign
investment now or in the future. Investors of our ordinary shares will not own any equity interests in the VIE and may never hold
equity interests in our Chinese operating companies, but instead own shares of a Cayman Islands holding company. Neither we nor our
subsidiaries own any shares in the VIE, Jiangsu Yanggu. Instead, we have satisfied conditions for consolidation of the VIE under
U.S. GAAP and become the primary beneficiary of the VIE for accounting purposes through a series of contractual arrangements (the
“VIE Agreements”). We evaluated the guidance in FASB ASC 810 and determined that Jiangsu Yanggu is a VIE. A VIE is an
entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without
additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest,
such as through voting rights, right to receive the expected residual returns of the entity or obligation to absorb the expected
losses of the entity. Our WFOE has the power to direct activities at Jiangsu Yanggu that most significantly impact Jiangsu
Yanggu’s economic performance, and has the right to receive benefits from Jiangsu Yanggu. As such, the WFOE is the primary
beneficiary of the VIE, for accounting purposes, based upon such contractual arrangements. Accordingly, under U.S. GAAP, the
financial results of the VIE are consolidated in our financial statements. In addition, these VIE agreements have not been truly
tested in the courts in China. Investors of our securities of will not own any equity interests in the VIE, but instead own shares
of a Cayman holding company. Chinese regulatory authorities could disallow the VIE structure, which would likely