Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 38

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 38
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 the domestic resident individually seeks to make a capital contribution to
the SPV using his or her legitimate domestic assets or interests; or he or she shall register with a local bank at his or her permanent
residence if the domestic resident individually seeks to make a capital contribution to the SPV using his or her legitimate offshore assets
or interests.

As of the date of this report, the individual
shareholders of Jiangsu Yanggu known as Chinese citizens, who also owned our shares, have completed registrations in accordance with Circular
37.

Circular 19 and Circular 16

Circular 19 was promulgated by SAFE on March 30,
2015, and became effective on June 1, 2015. According to Circular 19, foreign exchange capital of foreign-invested enterprises shall be
granted the benefits of Discretional Foreign Exchange Settlement (“ Discretional Foreign Exchange Settlement”). With Discretional
Foreign Exchange Settlement, foreign exchange capital in the capital account of a foreign-invested enterprise for which the rights and
interests of monetary contribution has been confirmed by the local foreign exchange bureau, or for which book entry registration of monetary
contribution has been completed by the bank, can be settled at the bank based on the actual operational needs of the foreign-invested
enterprise. The allowed Discretional Foreign Exchange Settlement percentage of the foreign exchange capital of a foreign-invested enterprise
has been temporarily set to be 100%. The Renminbi converted from the foreign exchange capital will be kept in a designated account and
if a foreign-invested enterprise needs to make any further payment from such account, it will still need to provide supporting documents
and to complete the review process with its bank. Furthermore, Circular 19 stipulates that foreign-invested enterprises shall make bona
fide use of their capital for their own needs within their business scopes. The capital of a foreign-invested enterprise and the Renminbi
if obtained from foreign exchange settlement shall not be used for the following purposes:

  directly or indirectly used for expenses beyond its business scope or prohibited by relevant laws or regulations;  

  directly or indirectly used for investment in securities unless otherwise provided by relevant laws or regulations;  

  directly or indirectly used for entrusted loan in Renminbi (unless within its permitted scope of business), repayment of inter-company loans (including advances by a third party) or repayment o...  

  directly or indirectly used for expenses related to the purchase of real estate that is not for self-use (