Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 126

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 126
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. (“ Oriental Culture WFOE” or “ WFOE”).

The Company, through its direct subsidiary Oriental
Culture HK and VIE, Jiangsu Yanggu Culture Development Co., Ltd. and subsidiaries (“ Jiangsu Yanggu”) and International Culture
are engaged in providing online platforms that facilitate the e-commerce trading of artwork and collectables and the online trading of
commodities, principally teas. The Company’s headquarters were located in the City of Nanjing, in the People’s Republic of
China (the “ PRC” or “ China”). All of the Company’s business activities are carried out by Oriental Culture
HK, Jiangsu Yanggu and Jiangsu Yanggu’s subsidiaries.

On May 8, 2019, Oriental Culture completed its
reorganization of entities under common control of various shareholders, who collectively owned100% of the equity interests of Oriental
Culture prior to the reorganization. Oriental Culture, Oriental Culture BVI, and Oriental Culture HK, were established as the holding
companies of Oriental Culture WFOE. Oriental Culture WFOE is the primary beneficiary of Jiangsu Yanggu and its subsidiaries. Prior to
the reorganization, Jiangsu Yanggu and International Culture were under common control, as the same group of shareholders held more than50% of the voting ownership interest of each entity, and contemporaneous written evidence of agreements to vote a majority of the entities’
shares in concert exists. Oriental Culture, International Culture and Jiangsu Yanggu were under common control, which resulted in the
consolidation of International Culture and Jiangsu Yanggu, which was accounted for as a reorganization of entities under common control
at their carrying values.

On May 9, 2019, the Company acquired all outstanding
equity interest of HKDAEx Limited (“ HKDAEx”), which provides the Company’s customers with an additional online trading
platform in Hong Kong. Therefore, starting in second half of 2019, the Company expanded its business operations to include online trading
of certain commodities, primarily teas on the platform of HKDAEx. On December 27, 2024, pursuant to the transfer agreement between the
Company and Ever Youngster Limited, the Company transferred its entire ownership in HKDAEx to Ever Youngster Limited for $1, resulting
a gain on this disposal of $25,098.

Contractual Arrangements

In the PRC, investment activities by foreign investors
are principally governed by the Special Administrative Measures (Negative List) for Foreign Investment Access which