Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 59

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 59
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, so that they will have confidence in the Company and continue to list and trade art and collectible products on the online platforms
of the Company. However, there can be no assurance that these measures will restore customer confidence in using the Company’s services
efficiently or at all.

Although NCCP has withdrawn its charges against Nanjing Jinwang, Nan
County Public Safety Bureau has not released the funds from frozen accounts of Kashi Dongfang and Nanjing Yanyu as of the date of this
report. The Company cannot reasonably estimate when the bank accounts for the subsidiaries of the VIE will be unfrozen by the Nan County
Public Safety Bureau or the Court. The Company has and will continue to communicate with Nan County Public Safety Bureau and
the Court to unfreeze the bank accounts and release the funds for the subsidiaries of the VIE.

This investigation and case against our related
parties and slow recovery of Chinese economy after COVID-19 have negative impacted on our revenue for the year ended December 31, 2024.
Our revenue decreased approximately $1.0 million from approximately $1.6 million for the year ended December 31, 2023 to approximately
$0.6 million for the same period of 2024.

Key Factors Affecting Our Results

We believe the key factors affecting our financial
condition and results of operations include the following:

Number of Active Traders

Our results of operations are dependent on the
number of active traders using our platform. Active traders are defined as the total number of individuals who placed trades and traded
collectibles, artwork and commodities on our platforms during the relevant period. We had approximately 19,000, 35,000, and 142,000 traders
that participated in trading collectibles, artwork and commodities on our platforms for the years ended December 31, 2024, 2023 and 2022,
respectively. In 2023, the number of traders further decreased by 75% due to the investigation and impact of the
frozen bank accounts. In 2024, the number of traders further decreased by 46% due to the continuing investigation of our shareholder and
impact of the frozen bank accounts.

Number of Transactions

During the years ended December 31, 2024, 2023
and 2022, our platforms facilitated and completed approximately 7 million, 19 million, and 96 million transactions, respectively. The
change in the number of transactions was due to the change in