Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 62

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 62
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 of new collectibles/artwork and commodities that were successfully
listed on our platforms decreased from 135 for the year ended December 31, 2023 to 7 for the year ended December 31, 2024. The decrease
in the value generated by new product listings was mainly due to the decrease of the numbers of new products which caused by the impact
from the freezing of bank accounts caused by the ongoing case against our shareholders starting in the second half of 2022 as we had a
hard time to retain clients with the case ongoing.

(2) Transaction fee revenue: Transaction
fee revenue is generally calculated based on the transaction value of collectibles, artwork or commodities per transaction for our services
to facilitate the trading transactions. Transaction value is the dollar amount of the purchase and sale of the collectibles, artwork or
commodities after it is listed on our platform. We typically charge from 0.15% to 0.3% of the transaction value per transaction from both
the purchase and sale side of the transaction resulting in an aggregate of 0.3% to 0.6% of total transaction value. Sometimes, we charge
a predetermined transaction rate, which is negotiated on a case-by-case basis, for selected traders with specific large transactions.
Transaction fee revenue also includes predetermined monthly transaction fees, which are negotiated on a case-by-case basis for selected
traders with high trading volume, and is recognized and earned over the specified service period.

In 2018, the Company started a customer reward
points program, pursuant to which reward points were issued for opening a new account or referring customers to open accounts with us
during our promotion period. In that regard, customers are required to redeem certain reward points for new listings in addition to the
regular listing services fees. If a customer does not own any reward points, he/she can purchase them from other customers on our platform.
We do not record revenue when customers redeem any points as it is considered as a prerequisite for a new listing in addition to the regular
services fees. The points are traded by and among our customers on the platform and we charge a transaction fee from such points trading.
Transaction fee revenue from the trading of points amounted to approximately $61 and $1,800 for the years ended December 31, 2024 and
2023, respectively.

Total transaction fee revenue decreased by approximately
$0.5 million or 63.3% from approximately $0.8 million for the year ended December 31