Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 133

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 133
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issued wealth
management product with underlying investments in cash, bonds and equity funds. The investment products are issued by banks in the PRC.
The investments have a maturity of less than1year and their carrying value approximates their fair value. The gain from sale of these
investments, which is recognized in the statements of income and comprehensive income, was $109,964, $89,474and $156,066, for the years
ended December 31, 2024, 2023 and 2022, respectively. Short term investment in bank issued products amounted to $5,294,952and $3,247,349as of December 31, 2024 and 2023, respectively. Due to the issue mentioned in Restricted cash, all short-term investments issued by Ping
An Bank, which amounted to $10,794,296and $1,741,423as of December 31, 2024 and 2023, respectively, were restricted.

Short term investment also includes investment
of $5,256,000entrusted with third party investment advisor to assist the Company to invest in wealth management products in the PRC.
The Company entered into agreement with a third party advisors in May and June 2024 with a guarantee return of7.5% to8.5%. The
Company subsequently cancelled the investment agreement in 2025. $5,256,000was returned to the Company as the date of the report. The
Company has no gain or loss as the contract was terminated by the Company.

Allowance for credit losses

Accounts receivable is amounts due from the Company’s
customers, mainly from the Company’s marketing revenue where the Company grant credits of 30-60 days.

Other receivables and other receivable related
party are short term primarily include funds which are held on a trading platform trust account with Nanjing Jinwang Art Purchase E-commerce
Co., Ltd., which is controlled or owned by Huajun Gao and/or Aimin Kong, each is a shareholder of the Company. The funds are not restricted
and can be withdrawn and used after the Company completes the necessary administrative procedures. The Company normally makes withdrawals
from this account monthly.

An allowance for credit losses may be established
and recorded based on management’s assessment of potential losses based on the credit history and relationships with the customers.
Management also periodically evaluates individual customer’s financial condition and record expected credit loss in the period in
which loss is determined to be probable based on lifetime expected