Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 0

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 0
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ITEM 3. KEY INFORMATION

Our Holding Company Structure and Contractual
Arrangements with the Consolidated VIE and Its Individual Shareholders in China

We are a Cayman Islands holding company without
material operations and our business is conducted by our subsidiaries in Hong Kong and variable interest entity (“ VIE”) and
its subsidiaries in China and this structure involves unique risks to investors. We are not a Chinese operating company and that our business
in China is conducted through contractual arrangements with the VIE and its subsidiaries. However, the VIE agreements have not been truly
tested in the courts in China. Chinese regulatory authorities could disallow this structure, which would likely result in a material change
in our operations and/or a material change in the value of the securities we are registering for sale, including that it could cause the
value of such securities to significantly decline or become worthless. See “ Item 3. Key Information - D. Risk Factors - 
“ If the Chinese government determines that the contractual arrangements through which we control the VIE do not comply with applicable
regulations, our business could be adversely affected.” and “ Uncertainties and quick change in the interpretation and enforcement
of Chinese laws and regulations with little advance notice could result in a material and negative impact on our business operations,
decrease the value of our securities and limit the legal protections available to you and us.”

There
are legal and operational risks associated with being based in and having our operations in Hong Kong and China. Recently, the PRC government
initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice, including
cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using
variable interest entity structure, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in
anti-monopoly enforcement. On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office
of the State Council jointly issued an announcement to crack down on illegal activities in the securities market and promote the high-quality
development of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border
oversight of law-enforcement and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish
and improve the system of extraterritorial application of the PRC securities laws. On December 28, 2021, Cybersecurity Review Measures
were published by Cybers