Company: OCG
Filing Date: 2025-12-11
Form Type: 424B5
Source: 0001213900-25-120719
Chunk: 18

Company: Oriental Culture Holding LTD
Filing Date: 2025-12-11
Form: 424B5
Chunk 18
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 the holding company (“Non-PRC Entities”), there is no restrictions
on foreign exchange for such entities and they are able to transfer cash among these entities, across borders and to US investors. Also,
there is no restrictions and limitations on the abilities of Non-PRC Entities to distribute earnings from their businesses, including
from subsidiaries to the parent company or from the holding company to the U.S. investors as well as the abilities to settle amounts
owed.

We are a holding company, and we rely on dividends
and other distributions on equity paid by our subsidiaries for our cash and financing requirements, including the funds necessary to
pay dividends and other cash distributions to our shareholders and service any debt we may incur. If any of our subsidiaries incurs debt
on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions
to us. Current PRC regulations permit our WFOE to pay dividends to the Company only out of its accumulated profits, if any, determined
in accordance with Chinese accounting standards and regulations. In addition, our subsidiaries in China are required to set aside at
least 10% of their after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered
capital. Each such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare
fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory
reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings
of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation. In addition,
the Enterprise Income Tax Law and its implementation rules provide that a withholding tax at a rate of 10% will be applicable to dividends
payable by Chinese companies to non-PRC-resident enterprises unless reduced under treaties or arrangements between the PRC central government
and the governments of other countries or regions where the non-PRC resident enterprises are tax resident. Pursuant to the tax agreement
between mainland China and the Hong Kong Special Administrative Region, the withholding tax rate in respect to the payment of dividends
by a PRC enterprise to a Hong Kong enterprise may be reduced to 5% from a standard rate of 10%. However, if the relevant tax authorities
determine that our transactions or arrangements are