Oriental Culture Holding LTD Announces First Half Year of 2024 Unaudited Financial Results

Financial Performance - Total revenues for the six months ended June 30, 2024, were approximately $0.4 million, a decrease of 45.7% from approximately $0.8 million for the same period in 2023 [2][11] - Gross profit decreased by 51.6% to approximately $0.3 million, with a gross margin of 65.8% compared to 76.0% in the prior year [2][27] - The company reported a loss from operations of approximately $2.1 million, contrasting with an income from operations of approximately $2.4 million for the same period in 2023 [2][15] - Net loss was approximately $1.9 million, a slight improvement from a net loss of approximately $2.1 million in the previous year [2][31] - Basic and diluted loss per share was $0.28, down from $0.50 in the same period last year, representing a 45.3% decrease [2][32] Revenue Breakdown - Listing service fees increased by approximately 86.9% to $101,934, driven by an increase in listing values from $2.4 million to $15.8 million [17][19] - Transaction fee revenue decreased by 55.0% to approximately $224,049, attributed to a drop in total transaction value from approximately $300 million to $86.8 million [21][22] - Marketing service fees fell by 61.1% to approximately $65,763 due to decreased demand for marketing services [24][25] - Other revenues decreased by 28.8% to approximately $55,511, primarily due to reduced consulting and training services [25] Operational Changes - The trading platform operated by HKDAEx merged with the main online platform for collectibles and artwork to enhance resource integration and customer service [3] - The trading platform of HKDAEx ceased operations as of June 30, 2024 [3] Investigation Impact - The investigation into Nanjing Jinwang has materially impacted business operations, causing difficulties for customers in withdrawing security deposits [9][11] - As of June 30, 2024, approximately $17.3 million in cash and short-term investments were frozen due to the investigation [8][12] - The company is actively communicating with authorities to unfreeze bank accounts and restore customer confidence [10][12] Liquidity and Capital Resources - As of June 30, 2024, the company had approximately $18.8 million in cash, with working capital of approximately $23.7 million, excluding frozen funds [12][14] - The company believes it has sufficient funds to meet working capital requirements and debt obligations over the next 12 months [14]