Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 60

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 60
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 the number of active traders and trading activities due to reason mentioned
above.

Transaction Value

Transaction value is defined as the dollar amount
of the purchase and sale of the ownership units of the collectibles, artwork and commodities after they are listed on our platforms. During
the years ended December 31, 2024, 2023 and 2022, total transaction value amounted to approximately $0.1 billion, $0.5 billion, and $8.6
billion, respectively. The change in total transaction value was due to the change in number of products listed, number of transactions,
and value of the units for the year ended December 31, 2024, 2023 and 2022. The numbers of new collectibles/artwork and commodities that
were successfully listed on our platforms decreased from 135 for the year ended December 31, 2023 to 7 for the year ended December 31,
2024 consistent with the decrease of the value and number of the transactions listed.

Average Transaction Value Per Trader

Average transaction value per trader is calculated
by dividing the total number of active traders from total transaction value during the relevant period. During the years ended December
31, 2024, 2023, and 2022, our average transaction value per client was approximately $6,000, $0.01 million, and $0.06 million, respectively.
The decrease of average transaction value is due to the reasons stated above.

Results of Operations

The tables in the following discussion summarize
our consolidated statements of income and comprehensive income for the periods indicated. This information should be read together with
our consolidated financial statements and related notes included elsewhere in this annual report. The operating results in any period
are not necessarily of the results that may be expected for any future period.

Years Ended December 31, 2024 vs. December 31, 2023

                                                                                  For the Years Ended                        Variance             
                                                                                         December 31,                                             
                                                                                                 2024             2023         Amount             
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net revenues                                                                               $568,057       $1,435,449      $(867,392      (60.4  
  Net revenues – related parties                                                               54,633          144,609        (89,976      (62.2  
  Total operating revenues                                                                    622,690        1,580,058       (