Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 127

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 127
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 is updated from time
to time by MOFCOM and NDRC. The most recent list of restricted and prohibited industries can be found in the Special Entry Management
Measures (Negative List) for the Access of Foreign Investment (2024 version), which was promulgated by the National Development and Reform
Commission and the Ministry of Commerce on September 6, 2024 and took effect on November 1, 2024 The Negative List divides industries
into two categories: restricted and prohibited. Industries not listed in the Negative List are generally open to foreign investment unless
specifically restricted by other PRC regulations.

F-7

ORIENTAL CULTURE HOLDING LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Oriental Culture is a Cayman Islands company and
its subsidiaries including Oriental Culture WFOE is considered a foreign invested enterprise. Although the business the Company conducts
through Jiangsu Yanggu is not within the category in which foreign investment is currently restricted or prohibited under the Negative
List or other PRC Laws, the Company expects that in the future Jiangsu Yanggu will engage in marketing survey services for online marketplaces.
Marketing survey services are within the category in which foreign investment is restricted pursuant to the Negative List. In addition,
the Company intends to centralize the Company’s management and operations in the PRC to avoid being restricted to conduct certain
business activities which are important for the Company’s current or future business but are currently restricted or might be restricted
in the future. As such, Jiangsu Yanggu is controlled through contractual arrangements in lieu of direct equity ownership by the Company
or any of its subsidiaries. Such contractual arrangements are comprised of a series of four agreements (collectively the “ Contractual
Arrangements”), of which the significant terms are as follows:

Contractual Agreements with Jiangsu Yanggu

Technical Consultation and Services Agreement

Pursuant to the technical consultation and services
agreement between Oriental Culture WFOE and Jiangsu Yanggu, Oriental Culture WFOE has the exclusive right to provide consultation and
services to Jiangsu Yanggu in the areas of management, human resources, technology and intellectual property rights. For such services,
Jiangsu Yanggu agrees to pay service fees of100% of its net income to Oriental Culture WFOE and also Oriental Culture WFOE has the obligation
to absorb100% of the losses of Jiangsu Yanggu.

The WFOE exclusively owns any intellectual property