GlobeNewswire Inc | Apr 30, 2021 09:12AM EDT

April 30, 2021

HONG KONG, April 30, 2021 (GLOBE NEWSWIRE) -- Oriental Culture Holding LTD. (OCG or the Company) (NASDAQ: OCG), a leading online provider of collectibles and artwork e-commerce services, today announced its financial results for the fiscal year ended December 31, 2020.

Key Financial Highlights for Fiscal Year 2020:

-- Operating revenues increased by $4.0 million or 29.7% from $13.4 million in fiscal year 2019 to $17.4 million in fiscal year 2020. -- Gross profit was $14.8 million in 2020 as compared to $12.1 million in 2019, representing a 22.1% growth from the same period in 2019. -- Net income was $2.0 million in 2020, a decline of $7.1 million or 77.5% from $9.1 million in the same period of 2019.

For the Fiscal Years Ended December 31,($ millions, except per share 2020 2019 % Changedata)Revenue $17.4 $13.4 29.7%Gross profit $14.8 $12.1 22.1%Gross margin 85.1% 90.3% -5.2 percentage pointsIncome from operations $1.65 $8.98 -81.7%Operating profit margin 9.5% 67.0% -57.5 percentage pointsNet income $2.0 $9.1 -77.5%Earnings per share $0.13 $0.64 -79.6%Net book value per share $2.15 $0.92 133.7%

The information in this press release is subject to the more complete presentation set forth in in our Annual Report on Form 20-F for the period ended December 31, 2020 which will be filed with the Securities and Exchange Commission on April 30, 2021.

Mr. Lewis Wan, Chairman of the Board of Directors of the Company commented, As Covid-19 vaccines become available to wider community in the world, we believe a global economic recovery in 2021 is around the corner. With quantitative easing and low interest rate, capital flow and world economy will likely head for a change. We believe that as money pours into the market as a common tool to stimulate economic growth, the scarcest asset will not be cash but real, liquid assets, especially those are valued in RMB considering the growth in China. The products traded on OCGs platforms are both valued in RMB, and are liquid assets that worth investing in with high collection values.

The online artwork and collectible trading markets will continue to attract strong investor interests as investor and collector confidence grows with the rise of Chinas economy and the middle class. OCG rides on the right industry cycle and is confident that the Companys long-term performance will benefit from the capital inflow and number of clients growth. OCG looks forward to creating increasing value for shareholders and share its development with the wider capital market, Mr. Wan added.

Ms. Fiona Ni, Chief Financial Officer of the Company commented: Our operating revenues increased by $4.0 million or 29.7% from $13.4 million in fiscal year 2019 to $17.4 million in fiscal year 2020. Gross profit was $14.8 million in 2020, representing a 22.1% growth from the same period in 2019. Newly listed products and new accounts opening have driven most of the positive rebound in OCGs performance in the second half of 2020, which generated sales mainly from the collectibles and artwork listing services, marketing services and transaction fees. As of December 31, 2020, the number of types of collectibles, artwork and commodities listed on OCGs platforms were 303, representing 163% increase from the previous year.

During the year 2020, OCG also had approximately 95,000 new accounts opened on the Companys trading platforms, representing a year-on-year growth of 44% from approximately 66,000 new accounts opened during the same period of 2019, Ms. Ni said.

About Oriental Culture Holding LTD

Oriental Culture Holding LTD is an online provider of collectibles and artwork e-commerce services, which allow collectors, artists, art dealers and owners to access an art trading market with a wider range of collectibles and artwork investors. Through its subsidiaries in Hong Kong, the Company provides trading facilitation for individual and institutional customers of all kinds of collectibles, artworks and certain commodities on its online platforms, as well as online and offline integrated marketing, storage and technical maintenance service to customers in China. For more information about the Company, please visit:www.ocgroup.hk.

Safe Harbor Statement

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as may, will, intend, should, believe, expect, anticipate, project, estimate or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Companys expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Companys goals and strategies; the Companys future business development; financial condition and results of operations; product and service demand and acceptance; reputation and brand; the impact of competition and pricing; changes in technology; government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Companys filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forwardlooking statements to reflect events or circumstances that arise after the date hereof.

For more information, please contact:

The Company:IR DepartmentEmail: IR@ocgroup.hkPhone: +86 (025) 85766891

Investor Relations:Janice WangEverGreen Consulting Inc.Email: IR@changqingconsulting.comPhone: +1 571-464-9470 (from U.S.) +86 13811768559 (from China)

ORIENTAL CULTURE HOLDING LTD AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December31, December31, 2020 2019 ASSETS CURRENT ASSETS Cash and cash equivalents $ 24,036,174 $ 9,184,671 Short-term investment 1,056,286 1,749,092 Accounts receivable, net 402,428 1,263,224 Other receivables and prepaid expenses 199,515 32,942 Deposit 13,333,538 - Total current assets 39,027,941 12,229,929 PROPERTY AND EQUIPMENT, NET 372,215 460,869 OTHER ASSETS Escrow 600,000 - Investment 535,617 500,967 Intangible assets, net 572,992 739,793 Deferred offering costs - 782,029 Total other assets 1,708,609 2,022,789 Total assets $ 41,108,765 $ 14,713,587 LIABILITIES AND SHAREHOLDERS? EQUITY CURRENT LIABILITIES Accounts payable $ 4,831,394 $ 333,505 Accounts payable - related parties 1,229,381 207,766 Deferred revenue 243,355 176,457 Other payables and accrued liabilities 1,043,383 695,806 Other payables - related parties 7,312 61,318 Taxes payable 184,694 139,463 Total current liabilities 7,539,519 1,614,315 Total liabilities 7,539,519 1,614,315 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS? EQUITY Preferred shares, $0.00005 par value,100,000,000 shares authorized, no shares - - issued and outstanding as of December 31,2020 and 2019, respectively* Ordinary shares, $0.00005 par value,900,000,000 shares authorized, 30,054,712 and24,800,000 shares issued***, 20,444,712 and 1,503 1,240 15,190,000 shares outstanding as of December31, 2020 and 2019, respectively** Treasury shares, at cost, 9,610,000 sharesissued as of December 31, 2020 and 2019, (481 ) (481 )respectively*** Additional paid-in capital 18,884,992 1,608,045 Statutory reserves 112,347 112,347 Retained earnings 13,647,770 11,599,663 Accumulated other comprehensive income (loss) 923,115 (221,542 )Total shareholders? equity 33,569,246 13,099,272 Total liabilities and shareholders? equity $ 41,108,765 $ 14,713,587

* gives retroactive effect to the re-designation of preferred shares on September 12, 2019. gives retroactive effect to the re-designation of ordinary shares on** September 12, 2019 and the 2-for-1 forward share split to authorized, issued and outstanding shares on November 8, 2019. gives retroactive effect to the surrender of an aggregate of 12.5% of our then outstanding ordinary shares from our existing shareholders at no*** consideration to the Company as treasury shares on November 8, 2019 and retroactive effect to the second surrender of an aggregate of 30.0% of our then outstanding ordinary shares from our existing shareholders at no consideration to the Company as treasury shares on May 28, 2020.

The accompanying notes are an integral part of these consolidated financial statements.

ORIENTAL CULTURE HOLDING LTD AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

For the Years Ended December 31, 2020 2019 OPERATING REVENUES: Net revenues $ 17,225,630 $ 13,203,049 Net revenues - related parties 213,172 246,386 Total operating revenues 17,438,802 13,449,435 COST OF REVENUES: Cost of revenues (907,402 ) (722,198 )Cost of revenues - related party (1,734,761 ) (607,679 )Total cost of revenues (2,642,163 ) (1,329,877 ) GROSS PROFIT 14,796,639 12,119,558 OPERATING EXPENSES: Selling and marketing (4,242,231 ) (550,373 )Selling and marketing - related party (1,762,652 ) (124,857 )General and administrative (6,943,803 ) (2,037,762 )General and administrative - related (201,865 ) (427,473 )partiesTotal operating expenses (13,150,551 ) (3,140,465 ) INCOME FROM OPERATIONS 1,646,088 8,979,093 OTHER INCOME Gain from short-term investment 93,007 29,008 Interest income 139,916 75,544 Other income, net 169,096 4,227 Total other income, net 402,019 108,779 INCOME BEFORE INCOME TAXES 2,048,107 9,087,872 PROVISION FOR INCOME TAX - - NET INCOME $ 2,048,107 $ 9,087,872 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment 1,144,657 (132,280 ) COMPREHENSIVE INCOME $ 3,192,764 $ 8,955,592 WEIGHTED AVERAGE NUMBER OF ORDINARY SHARESBasic and diluted* 15,615,729 14,167,041 EARNINGS PER SHARE Basic and diluted* $ 0.13 $ 0.64

gives retroactive effect to the 2-for-1 forward share split and the concurrent surrender of 12.5% of our then outstanding ordinary shares, from* our existing shareholders on November 8, 2019 and retroactive effect to the second surrender of 30.0% of our then outstanding ordinary shares, from our existing shareholders on May 28, 2020.

The accompanying notes are an integral part of these consolidated financial statements.

ORIENTAL CULTURE HOLDING LTD AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 2,048,107 $ 9,087,872 Adjustments to reconcile net income tonet cash (used in) provided by operating activities:Depreciation and amortization 308,274 241,719 Gain from short-term investment (93,007 ) (29,008 )Loss from disposal of equipment 437 4,074 Bad debt expenses 117,432 - Change in operating assets and liabilities:Decrease (increase) in accounts 779,503 (358,411 )receivableDecrease in accounts receivable - - 12,684 related parties(Increase) decrease in other (778,684 ) 438,780 receivables and prepaid expensesDecrease in other receivables - - 255,262 related partiesDecrease in prepayment - 15,367 Increase in accounts payable 4,392,974 323,551 Increase (decrease) in accounts 952,820 (47,551 )payable - related partiesIncrease (decrease) in deferred 51,738 (642,459 )revenueIncrease in other payables and accrued 288,331 282,651 liabilitiesIncrease (decrease) in taxes payable 33,662 (25,064 )Net cash provided by operating 8,101,587 9,559,467 activities CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of short-term investment (24,422,988 ) (4,157,281 )Proceed from sale of short-term 25,285,807 2,417,485 investmentProceed from sale of investment - 60,883 Purchase of property, plant and (9,388 ) (271,258 )equipmentPurchase of intangible assets (9,642 ) (119,725 )Deposit on real estate purchase (12,613,083 ) - Cash acquired from business - 631,136 acquisitionNet cash (used in) investing (11,769,294 ) (1,438,760 )activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from initial public 18,090,668 - offerings, netPayments of other payables - related (54,273 ) (162,291 )partyDeferred offering costs - (691,288 )Net cash provided by (used in) 18,036,395 (853,579 )financing activities EFFECT OF EXCHANGE RATE ON CASH AND 482,815 (99,315 )CASH EQUIVALENTS INCREASE IN CASH AND CASH EQUIVALENTS 14,851,503 7,167,813 CASH AND CASH EQUIVALENTS, beginning 9,184,671 2,016,858 of year CASH AND CASH EQUIVALENTS, end of year $ 24,036,174 $ 9,184,671 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid for income tax $ - $ - Cash paid for interest $ - $ - NON-CASH TRANSACTIONS OF INVESTING AND FINANCING ACTIVITIESBusiness acquisition through issuance $ - $ 1,495,505 of ordinary sharesDeferred offering costs offset withadditional paid-in capital upon $ 1,413,458 $ - initial public offeringsProceeds from initial public offering $ 600,000 $ - placed in escrow

The accompanying notes are an integral part of these consolidated financial statements.