Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 131

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 131
---
 SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Translation adjustments are included in accumulated
other comprehensive income. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2024 and December
31, 2023 were translated at RMB 7.19 and RMB 7.08 to one U. S. dollar (USD), respectively. The average translation rates applied to the
consolidated statements of income and cash flows for years ended December 31, 2024, 2023 and 2022 were RMB 7.12, RMB 7.05 and RMB 6.73
to one USD. The balance sheet amounts, with the exception of shareholder’s equity at December 31, 2024 and 2023 were translated
at HKD 7.77 and HKD 7.81 to one USD, respectively. The average translation rates applied to the consolidated statements of income and
cash flows for years ended December 31, 2024, 2023 and 2022 were HKD 7.80, HKD 7.83 and HKD 7.83 to one USD, respectively. The shareholder’s
equity accounts were translated at their historical rates. Amounts reported on the statement of cash flows will not necessarily agree
with changes in the corresponding balances on the consolidated balance sheets.

Fair value measurement

The accounting standards regarding fair value
of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of
financial instruments held by the Company.

The accounting standards define fair value, establish
a three-level valuation hierarchy for disclosures of fair value measurements and enhance disclosure requirements for fair value measures.
The three levels are defined as follows:

  Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.                                                                     
  Level 2 inputs to the valuation methodology include quoted prices, other than those included in Level 1, for similar assets and liabilities in active markets, and inputs that are observable for...  
  Level 3 inputs to the valuation methodology are unobservable and significant to the fair value.                                                                                                       

The carrying amounts included in current assets
and current liabilities in the consolidated balance sheets approximate their fair values because of the short-term nature of such instruments.

Fair value disclosure:

                                                                              December 31, 2024                                            
                                                                              Fair Value                                                   
                                                    Cost                      Level 1                Level