Core Insights - Oriental Culture Holding LTD. reported a significant decline in revenue for the first half of 2025, with total revenues of approximately $0.1 million, down 64% from approximately $0.4 million in the same period of 2024 [7][16] - The company faced operational challenges due to an investigation involving major shareholders, which negatively impacted customer confidence and trading activity on its platforms [5][15] - The company has made strategic changes, including the termination of its variable interest entity (VIE) structure, to adapt to its evolving business strategy [9] Financial Performance - Total revenues for the six months ended June 30, 2025, were approximately $0.1 million, compared to approximately $0.4 million for the same period in 2024, representing a decrease of approximately $0.3 million or 64% [7][19] - Gross profit decreased to approximately $0.1 million for the six months ended June 30, 2025, from approximately $0.3 million in 2024, with a gross margin of 84.7% compared to 65.8% in the prior year [7][32] - The net loss for the first half of 2025 was approximately $3.8 million, an increase of 104.2% from a net loss of approximately $1.9 million in the same period of 2024 [7][39] Revenue Breakdown - Listing service fees dropped significantly by approximately $0.1 million or 99.9%, from approximately $0.1 million in 2024 to approximately $100 in 2025, with no new collectibles or artwork successfully listed during the period [22][24] - Transaction fee revenue decreased by approximately $0.2 million or 71.9%, from approximately $0.2 million in 2024 to approximately $63,000 in 2025, attributed to a decline in total transaction value from approximately $86.8 million to approximately $61.5 million [26] - Marketing service fees fell to $0 in 2025 from approximately $66,000 in 2024, reflecting decreased demand for marketing services [29] Operational Changes - The company appointed Mr. Aimin Kong as COO and granted him 12 million preferred shares, valued at approximately $1.75 million [3] - The Board approved an increase in authorized share capital from $50,000 to $500,000, allowing for a significant increase in the number of ordinary shares [6][8] - The company has invested in a blockchain asset exchange system, costing $1.5 million, although the project has not yet launched [5] Investigation Impact - The investigation involving major shareholders has led to a substantial decrease in active customers, from 15,124 in the first half of 2024 to 4,504 in 2025 [15] - The investigation resulted in the freezing of bank accounts related to the company, which further impacted customer trust and operational capabilities [11][12] - The charges against the shareholders were withdrawn in May 2025, allowing for the unfreezing of bank accounts and resumption of normal operations [13]