Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 136

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 136
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. The Company generally considers an ownership interest of20% or higher to represent
significant influence. The Company accounts for the investments in entities over which it has neither control nor significant influence,
and no readily determinable fair value is available, using the investment cost minus any impairment, if necessary. The Company’s
investment of18% ownership of Zhongcang Warehouse Co., Ltd. was $486,179and $493,435as of December 31, 2024 and 2023, respectively,
and is accounted for using the cost method.

In March 2022, the Company’s VIE Jiangsu
Yanggu entered into an equity subscription agreement to purchase11.875% equity interest of Beijing Jiu Yu Ling Jing Technology
Co., Ltd. (“ JYLJ”), a company incorporated in the PRC, which primarily engages in wine and alcohol product merchants and customers,
as well as product launch, brand showcase, marketing and promotion and it is currently in the process of developing a “ Wine and
Spirits” metaverse, and the amount raised through increase of share capital are mainly used for this development. JYLJ’s total
registered capital is RMB60million (approximately USD9.2million). Jiangsu Yanggu’s subscription amount is
RMB6million and RMB3million was paid in March 2022. The remaining RMB3million is to be paid upon further
resolution from the board of JYLJ. As of December 31, 2024 and 2023, the Company’s investment in YLJ was $417,339and $423,567,
respectively, and is accounted for using the cost method.

The Company’s cost method investments are
as summarized below as of years ended:

                                                     December 31,      December 31,  
  Zhongcang Warehouse Co., Ltd.                          $486,179          $493,435  
  Beijing Jiu Yu Ling Jing Technology Co., Ltd.           417,339           423,567  
  Total cost method investments                          $903,518          $917,002  

Investments are evaluated for impairment when
facts or circumstances indicate that the fair value of the long-term investment is less than its carrying value. An impairment loss is
recognized when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether
a loss is other-than-temporary. These factors include, but are not limited to, the: (i) nature