Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 57

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 57
---
,
and artwork and collectibles warehousing services. Most services are delivered online through our proprietary client software and call
center. Our client software provides not only market information and analysis, but also interactive functions including live discussion
boards and instant messaging with customer service representatives, which we believe enhances our customers’ engagement. Internally,
we legally collect and analyze customer behavior and communications data from our client software, customer relationship management system
and the exchanges, which allow us to better understand, attract and serve our customers.

We provide industry solutions and related software
products, system development and technical support services for our cooperation with e-commerce platform customers.

We strive to minimize conflicts of interest with
our customers, which we believe is essential for our long-term success. Under the trading rules of the exchange platform we operate
on, we do not set, quote or influence the trading prices, and cannot access our customers’ money.

Disposal of subsidiary

In December 2024, we disposed of HKDAEx to an
unrelated third party for $1 and recognized approximately $25,000 of gain from the disposal. HKDAEx provided our customers with an
additional online trading platform of certain commodities in Hong Kong. As of June 30, 2024, the trading platform operated by HKDAEx for
products and commodities other than collectible and artwork in Hong Kong ceased operation and its businesses were moved to our main online
platform for collectibles and artwork operated by International Exchange to better integrate resources, reduce costs, and provide better
customer services. Since the disposal did not represent any strategic change of our operation, the disposal was not presented as discontinued
operations.

Impact of investigation and charge against
our shareholders

On July 1, 2022, Mr. Huajun Gao and Mr. Aimin
Kong, each was a major shareholder of the Company, were detained by Nan County Public Safety Bureau of Yiyang City, Hunan Province, China.
On July 26, 2022, Nan County People’s Procuratorate (“ NCPP”) approved the arrest of Mr. Gao and Mr. Kong, charging them
with assisting in illegal online business operation of Nanjing Jinwang Art Purchase E-commerce Co., Ltd. (“ Nanjing Jinwang”)
and prosecuted them to Nan County People’s Court (the “ Court”) in August 2023. The Court had the hearing in August 2023
and trial in January 2024 and both of them have been released on bail waiting for