Company: OCG
Filing Date: 2025-04-30
Form Type: NT 20-F
Source: 0001213900-25-037658
Chunk: 4

Company: Oriental Culture Holding LTD
Filing Date: 2025-04-30
Form: NT 20-F
Chunk 4
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 service fees: Marketing service
fees decreased by approximately $10,000 or 5.7% from approximately $170,000 for the year ended December 31, 2023 to approximately $160,000
for the same period in 2024. The decrease was due to the decrease in demand for marketing services from customers to promote their listed
items.

(4) Other revenues: Total other revenues
decreased by $84,135 or 56.2% from $149,644, which included $144,609 from providing technological services to our related parties for
the same period in 2023 to $65,509, which included $54,633 from providing technological services to our related parties for the same period
in 2024. The decrease was primarily because we provided less consulting and training services to traders for the year ended December 31,
2024.

<div align='center'>3</div>

Cost of Revenues

Cost of revenues decreased by approximately $0.2
million or 55.1% from approximately $0.4 million including approximately $0.06 million from a related party for the year ended December
31, 2023 to approximately $0.2 million including $0.02 million from a related party for the same period in 2024. The decrease in cost
of revenues was primarily due to the decrease in employee salaries of approximately $79,000, decrease in system fees of approximately
$79,000, and decrease in warehouse storage of approximately $43,000. The warehouse storage fees were charged based on certain percentage
of listing value of commodities, decrease in warehouse storage fee was due to decrease in overall listing value of products.

Gross Profit

Gross profit decreased by approximately $0.7 million
or 62.5% from approximately $1.2 million for the year ended December 31, 2023 to approximately $0.5 million for the year ended December
31, 2024. Gross margin for the years ended December 31, 2024 and 2023 were approximately 70.7% and approximately 74.3%, respectively.

Selling and Marketing Expenses

The following table sets forth our operating expenses
by amounts and percentages for the periods indicated:

|                                              |     | For the Years Ended December 31, 
 2024                             
 Expense                          |            |   |     | % |       |     | 2023    
 Expense |            |   |     | %