Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 64

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 64
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 on a case-by-case
basis and are recognized when the related services have been performed based on the specific terms of the contract. Agency recommendation
fees are mainly revenue generated from providing consulting and training services to certain traders/agents. Upon completion of the training
and consulting, these qualified traders/agents may introduce our platform and services to potential customers to list their collectibles
and artwork with us for a fee or promote their own products on our platform. Total other revenues decreased by $84,135 or 56.2% from $149,644,
which included $144,609 from providing technical services to our related parties for the same period in 2023 to $65,509, which included
$54,633 from providing technical services to our related parties for the same period in 2024. The decrease was primarily because we provided
less technical services for the year ended December 31, 2024.

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                                                                                                           
  Selling