Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 168

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 168
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 be material to the consolidated financial statements.

On July 1, 2022,
Mr. Huajun Gao and Mr. Aimin Kong, each was a major shareholder of the Company, were detained by Nan County Public Safety Bureau of
Yiyang City, Hunan Province, China. On July 26, 2022, Nan County People’s Procuratorate (“ NCPP”) approved the arrest
of Mr. Gao and Mr. Kong, charging them with assisting in illegal online business operation of Nanjing Jinwang Art Purchase E-commerce
Co., Ltd. (“ Nanjing Jinwang”) and prosecuted them to Nan County People’s Court (the “ Court”) in August
2023. The Court had the hearing in August 2023 and trial in January 2024 and both of them have been released on bail waiting for the
judgement of the Court since February 2024. On May 5, 2025, NCPP filed to the Court to withdraw the charges against Nanjing Jinwang,
Mr. Aimin Kong and Mr. Huajun Gao due to lack of evidence to press the charges. On May 8, 2025, the Court ordered to grant the withdrawal
of charges against Nanjing Jinwang, Mr. Kong and Mr. Gao by NCCP.

On July 1, 2022,
the bank accounts of Nanjing Jinwang were frozen by Nan County Public Safety Bureau, including a trust account into which the customers
of the Company deposit their security deposits in order to trade on the Company’s two online trading platforms which the Company
has entrusted Nanjing Jinwang for escrow.

Also, on July 1,
2022, Nan County Public Safety Bureau froze certain bank accounts of Kashi Longrui, Kashi Dongfang, and Nanjing Yanyu, all subsidiaries
of Jiangsu Yanggu Culture Development Co., Ltd., the VIE because they, each had business relationship with Nanjing Jinwang.

Neither the Company
nor its VIE or subsidiaries of its VIE has received any notification for enforcement charges from Nan County Public Safety Bureau, other
than cash and short-term investment in the frozen bank accounts with balances totaling approximately $ 14.7

Due to the investigation
of Nanjing Jinwang and frozen bank accounts, the business operations of the Company have been materially and negatively impacted as its
customers experienced difficulties withdrawing their security deposits through online banking and have concerns regarding their deposited
funds. The Company has