Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 169

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 169
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 taken remedial measures to assist its customers in withdrawing security deposits, such as through manual and in
person application with the bank to transfer funds, so that they will have confidence in the Company and continue to list and trade art
and collectible products on the online platforms of the Company. However, there can be no assurance that these measures will restore
customer confidence in using the Company’s services efficiently or at all.

Although NCCP has
withdrawn its charges against Nanjing Jinwang, Nan County Public Safety Bureau has not released the funds from frozen accounts of Kashi
Dongfang and Nanjing Yanyu as of the date of this report. The Company cannot reasonably estimate when the bank accounts for the subsidiaries
of the VIE will be unfrozen by the Nan County Public Safety Bureau or the Court. The Company has and will continue to communicate
with Nan County Public Safety Bureau and the Court to unfreeze the bank accounts and release the funds for the subsidiaries of the VIE.

Variable interest
entity structure

In the opinion
of management, (i) the corporate structure of the Company is in compliance with existing PRC laws and regulations; (ii) the Contractual
Arrangements are valid and binding, and do not result in any violation of PRC laws or regulations currently in effect; and (iii) the
business operations of the WFOE and the VIEs are in compliance with existing PRC laws and regulations in all material respects. However,
there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly,
the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to the foregoing opinion of the
management. If the current corporate structure of the Company or the Contractual Arrangements are found to be in violation of any existing
or future PRC laws and regulations, the Company may be required to restructure its corporate structure and operations in the PRC to comply
with the changes and the new PRC laws and regulations. In the opinion of management, the likelihood of loss in respect of the Company’s
current corporate structure or the Contractual Arrangements is remote based on current facts and circumstances.

The Company has
not provided for deferred income tax liabilities on the PRC entities’ undistributed earnings as of December 31, 2024 and 2023,
respectively, because the Company controls the timing of the undistributed earnings and it is probable that such earnings will not be
distributed. The