Company: OCG
Filing Date: 2025-12-11
Form Type: 424B5
Source: 0001213900-25-120719
Chunk: 69

Company: Oriental Culture Holding LTD
Filing Date: 2025-12-11
Form: 424B5
Chunk 69
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 the Company’s services efficiently or at all.

The investigation of Mr. Gao, Mr. Kong and
Nanjing Jinwang is ongoing. The Company has and will continue to communicate with Nan County Public Safety Bureau and other
government authorities to obtain more information regarding the investigation and to attempt to unfreeze the bank accounts for the subsidiaries
of the VIE. The Company will monitor the development of the investigation and will provide additional information concerning its impact
on the Company’s business in due course.

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Our Organizational Structure

The Company’s organizational
chart as of the date of this prospectus is as follows:

Variable Interest Entity Arrangements

In establishing our business,
we have used a variable interest entity, or VIE, structure. In the PRC, investment activities by foreign investors are principally governed
by Special Administrative Measures (Negative List) for Foreign Investment Access, which was promulgated and is amended from time to time
by the PRC Ministry of Commerce, or MOFCOM, and the PRC National Development and Reform Commission, or NDRC. Our Company and the WFOE
are considered as foreign investors or foreign invested enterprises under PRC law. These contractual arrangements with our variable interest
entity and its shareholders enable us to satisfy conditions for consolidation of the VIE under U.S. GAAP as Jiangsu Yanggu is considered
a VIE under the Statement of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”)
810 “Consolidation”, because the equity investments in Jiangsu Yanggu no longer have the characteristics of a controlling
financial interest, and the Company, through its WFOE, becomes the primary beneficiary of the VIE for accounting purposes.

The WFOE effectively assumed management of the business activities
of our variable interest entity through a series of agreements which are referred to as the VIE Agreements, including a Technical Consultation
and Service Agreement, a Business Cooperation Agreement, an Equity Pledge Agreement, an Equity Option Agreement, and a Voting Rights Proxy
and Financial Supporting Agreement. Through the VIE Agreements, the WFOE has the right to advise, consult, manage and operate the variable
interest entity for an annual consulting service fee in the amount of 100% of the variable interest entity’s net profit. The shareholders
of the variable interest entity have pledged all of their right, title and equity interest in the variable interest entity as security
for the WFOE to collect consulting