News & Updates | Annual Reports
Oriental Culture Holding Ltd. (OCG.US), a member of HKFAEx Group, is the First Nasdaq Listed Cultural and Art Collectible Exchange Group .
As the name suggests, Oriental Culture focuses on “Culture” in the “Orient”. Oriental Culture may be one of the key beneficiaries with the blooming Chinese culture industry. Starting from 2021, the market has been gripped by the concept of metaverse with numerous metaverse-themed projects and capital flooding in. When standards for metaverse hardware and software have not yet been fixed, content should be the king and therefore national-policy-supported cultural industry is expected to be a key beneficiary. Hong Kong established a new bureau to coordinate the overall culture development and amended the copyright legislation to position itself as a pivot gateway helping Chinese culture go-global, making Chinese culture a winning racetrack with high certainty. With Metaverse as the THEME and Hong Kong as the Go-Global GATEWAY, Oriental Culture is running on the winning Chinese Culture racetrack.
The Group’s operating revenues for 2021 increased by 115.6% to US$37.6 million, and net incomes increased by 458.8% to US$11.4 million, both record highs. The art and collectible market has bounced back and our business operation has returned to normal as COVID-19 pandemic has mostly been under control in China, and the positive global financial market sentiment resulting from the optimism around vaccine rollout, encouraging signs of early economic recovery, and continuing government stimulus measures, fueling global market confidence. Thanks to the encouraging market environment, a record breaking 199 products (2020: 188) were newly listed on our two trading platforms, and the number of new accounts this year were more than double to last year.
Undaunted by the impact of COVID-19, although OCG’s operating results were negatively affected during the first half of 2020, it has bounced back strongly as the epidemic in China was quickly brought under control and economic activity gradually returned to normal in the second half of the year. OCG’s operating revenue for 2020 was $17.4 million, up 29.7% from $13.4 million in 2019, a record high. However, due to rising operating costs during the COVID-19 pandemic, coupled with listing expenses, and the upfront investment of Oriental Culture to expand its business expansion and system upgrades, Oriental Culture's net profit fell by 77.5% from US$9.1 million in 2019 to $2.1 million in 2020.