Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 75

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 75
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 would result in further
dilution to our shareholders.

All of our revenue is denominated in RMB. Under
existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade
and service-related foreign exchange transactions, can be made in foreign currencies without prior SAFE approval as long as certain routine
procedural requirements are fulfilled. Therefore, our PRC subsidiary is allowed to pay dividends in foreign currencies to us without prior
SAFE approval by following certain routine procedural requirements. However, current PRC regulations permit our PRC subsidiary to pay
dividends to us only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations.
Our PRC subsidiary are required to set aside at least 10% of their after-tax profits after making up previous years’ accumulated
losses each year, if any, to fund certain reserve funds until the total amount set aside reaches 50% of their registered capital. These
reserves are not distributable as cash dividends. Furthermore, capital account transactions, which include foreign direct investment and
loans, must be approved by and/or registered with SAFE and its local branches. See “Risk Factors -Risks Relating to Doing Business
in China.” We rely on dividends and other distributions on equity paid by our PRC subsidiary to fund any cash and financing
requirements we may have, and any limitation on the ability of our PRC subsidiary to make payments to us could have a material adverse
effect on our ability to conduct our business.

Cash Flows

As of December 31, 2024, we had cash and cash
equivalents of approximately $32.6 million. The table below sets forth a summary of our cash flows for the periods indicated:

                                                           For the                                 For the           For the  
                                                           Year Ended                           Year Ended        Year Ended  
                                                           December 31,                       December 31,      December 31,  
                                                           2024                                       2023              2022  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash (used in) provided by operating activities      $                  (4,006,375        $3,624,590       $(1,211,385  
  Net cash used in investing activities                    $                 (11,556,351         $(511,248          $608,471  
  Net cash provided by financing activities                $                   6,998,517          $