Company: OCG
Filing Date: 2025-12-11
Form Type: 424B5
Source: 0001213900-25-120719
Chunk: 65

Company: Oriental Culture Holding LTD
Filing Date: 2025-12-11
Form: 424B5
Chunk 65
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 the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase the registered
capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable
as cash dividends except in the event of liquidation. In addition, the Enterprise Income Tax Law and its implementation rules provide
that a withholding tax at a rate of 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident enterprises
unless reduced under treaties or arrangements between the PRC central government and the governments of other countries or regions where
the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement between mainland China and the Hong Kong Special Administrative
Region, the withholding tax rate in respect to the payment of dividends by a PRC enterprise to a Hong Kong enterprise may be reduced
to 5% from a standard rate of 10%. However, if the relevant tax authorities determine that our transactions or arrangements are for the
primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding tax in the future.
Accordingly, there is no assurance that the reduced 5% withholding rate will apply to dividends received by our Hong Kong subsidiary
from our PRC subsidiaries. This withholding tax will reduce the amount of dividends we may receive from our PRC subsidiaries.

As of the date of this
prospectus, we do not have cash management policies and procedures in place that dictate how funds are transferred through our organization.
Rather, the funds can be transferred in accordance with the applicable PRC laws and regulations discussed in this section.

As of the date of this
prospectus, neither the WFOE nor any of our subsidiaries in Hong Kong has made any dividends or distributions to the Company, the Company
has not made any dividends or distribution to its investors. We intend to keep any future earnings to re-invest in and finance the expansion
of our business, and we do not anticipate that any cash dividends will be paid in the foreseeable future. Under the Cayman Islands law,
a Cayman Islands company may pay a dividend on its shares out of either profit or share premium amount, provided that in no circumstances
may a dividend be paid if this would result in the company being unable to pay its debts due in the ordinary course of business.

As of the date of this
prospectus, no dividends or distributions have been made between the holding company, its subsidiaries, and consolidated VIEs,