Oriental Culture Holding LTD (OCG): Business Model Canvas [Dec-2025 Updated]

You're looking at Oriental Culture Holding LTD (OCG) right now, and frankly, the numbers from the first half of 2025 tell a tough story: only $0.1 million in total revenues against a $4.5 million operating loss. As someone who's spent two decades mapping these structures, I see a core business-a proprietary online platform for high-value cultural assets-that's burning cash despite holding about $38.8 million in reserves as of June 30, 2025. This Canvas breaks down exactly how they plan to turn that around, from their key partnerships with art dealers to their reliance on transaction fees. Dive in below to see the full architecture of their strategy.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Key Partnerships

The operational environment for Oriental Culture Holding LTD's key partnerships is reflected in its recent financial performance for the six months ended June 30, 2025.

The platform's reliance on its supplier network is underscored by the sharp decline in active customers to 4,504 for the first half of 2025.

• Art dealers, artists, and owners providing collectibles for the platform.
• Technical and software providers for e-commerce platform maintenance.
• Related parties and shareholders for potential equity or debt financing.
• Cooperation e-commerce platform customers for industry solutions.

Regarding financing partnerships, the company issued 12 million Preferred Shares to Hao Shun Investments Limited, a related party under Mr. Kong's control, on June 27, 2025; these shares were valued at approximately $1.75 million on the grant date.

In November 2025, Oriental Culture Holding LTD purchased software for a block chain asset exchange system at a cost of $1.5 million, indicating a significant capital investment in platform technology.

The company's authorized share capital was increased in November 2025 from $50,000 to $500,000, allowing for the creation of 1.8 billion additional ordinary shares, which impacts future equity-based partnership structures.

The Current Market Cap for Oriental Culture Holding LTD as of early December 2025 stood at $52.03M.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Key Activities

You're looking at the core engine of Oriental Culture Holding LTD (OCG) as of late 2025, and honestly, the numbers from the first half of the year tell a challenging story about the core e-commerce operations.

The primary activity remains Operating and maintaining the online collectibles and artwork e-commerce platform, which is the historical foundation of Oriental Culture Holding LTD. However, the financial results for the six months ended June 30, 2025, show significant contraction in the top line compared to the prior year period. Total revenues were approximately \$0.1 million for H1 2025, a sharp drop from approximately \$0.4 million for the same period in 2024. This suggests that the platform's activity level, whether measured by gross merchandise volume or commission take-rate, has been severely curtailed, likely due to the investigation involving related parties that management noted negatively impacted customer confidence. Still, the gross margin remained high at 84.7% for H1 2025, an improvement from 65.8% in H1 2024, even as gross profit fell to approximately \$0.1 million from approximately \$0.3 million.

The activity of Facilitating secure, real-time trading for individual and institutional customers is directly reflected in the operating results. The shift from income from operations of approximately \$2.1 million in H1 2024 to a loss from operations of approximately \$4.5 million in H1 2025 is the clearest indicator of the pressure on trading facilitation activities. The net loss widened to approximately \$3.8 million in H1 2025 from approximately \$1.9 million in H1 2024, resulting in a basic and diluted loss per share of \$0.19 for the period.

Here's a quick look at the financial performance that underpins these activities for the first half of 2025:

The activities related to Providing integrated online and offline marketing and storage services are intertwined with the overall revenue decline, though specific segment data isn't broken out. We do see that selling expenses decreased significantly, from approximately \$0.1 million in H1 2024 to approximately \$2,000 for the same period in 2025, which suggests a sharp reduction in marketing spend alongside the revenue drop. The company still maintained a healthy balance sheet position as of the reporting date, with approximately \$38.8 million in cash and approximately \$39.1 million in working capital as of June 30, 2025.

Regarding Exploring new technology like blockchain for asset trading enhancement, Oriental Culture Holding LTD made a tangible investment, though the activity has not yet translated into revenue generation. The company purchased software for a block chain asset exchange system at a cost of \$1.5 million in November 2024, but as of November 2025, the project had not yet launched and was undergoing evaluation for required approvals. This represents a strategic outlay for future activity, but it is not yet operational.

Finally, Managing corporate governance, including the recent share capital increase, has been a major focus in late 2025, signaling preparation for future capital deployment or structural changes. Key governance activities approved in November 2025 include:

• Increasing the authorized share capital from \$50,000 to \$500,000.
• Creating 1.8 billion additional ordinary shares, raising the total authorized ordinary shares from 180 million to 1.98 billion.
• Approving share consolidations with a ratio of up to 1:4,000 over the next two years, effective from the November 28, 2025 meeting.
• Amending articles to adjust quorum requirements for adjourned meetings, allowing business to proceed if a quorum is not met within half an hour.

The current market capitalization stood at approximately \$52.03 million as of December 3, 2025, with an average trading volume of 11,631 shares. Finance: draft 13-week cash view by Friday.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Key Resources

You're looking at the core assets Oriental Culture Holding LTD (OCG) relies on to run its e-commerce services for collectibles and artwork. These aren't just abstract concepts; they are tangible and intangible things that make the business function.

The proprietary online trading platforms are central. HKDAEx Limited, a wholly-owned subsidiary since May 9, 2019, is a key piece of this. HKDAEx Limited doesn't just handle art and collectibles; it also provides an online trading platform for other products and commodities in Hong Kong. Furthermore, HKDAEx Limited is building out capabilities to create, mint, auction, and trade NFTs tied to cultural and artwork collections on its platform. This shows a clear focus on digital asset infrastructure supporting physical assets.

The technical infrastructure supporting these platforms is significant. OCG delivers most services online through its proprietary client software. This software isn't just for viewing; it offers market information, analysis, and interactive functions like live discussion boards and instant messaging with customer service representatives, which definitely helps keep customers engaged. Internally, OCG collects and analyzes customer behavior and communications data from this software and its customer relationship management system to better serve its client base.

Financially, the company held substantial liquidity as of the mid-year point in 2025. This cash position is a critical resource for operations and potential strategic moves. Here's a quick look at the balance sheet snapshot from that time:

The business also relies heavily on its curated inventory and the network it supports. Oriental Culture Holding LTD facilitates trading for individual and institutional customers across various collectibles, artworks, and certain commodities. To support this, they offer a suite of services that go beyond the transaction itself.

• Account opening services for traders.
• Art investment education programs.
• Provision of market information and research.
• Real-time customer support.
• Artwork warehousing services.

Finally, you have the human capital. Key management personnel are vital for steering the strategy, especially given the company's focus on the e-commerce segment of artwork trading. While I see records of the executive team structure, including the Chief Executive Officer and Chief Financial Officer, the specific appointment of a new Chief Operating Officer in 2025 isn't detailed in the latest public filings I have access to, but the operational leadership resource itself is definitely a core component.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Value Propositions

Access to a wider, more liquid art and collectibles trading market.

The total transaction value on the Oriental Culture Holding LTD platform for the six months ended June 30, 2025, was approximately $61.5 million. This followed a total transaction value of approximately $86.8 million for the same period in 2024. The number of active traders on the platform decreased to 4,504 as of H1 2025, down from 15,124 year-over-year. The company's market capitalization as of late 2025 has been reported around $52.91 million to $58.71 million. The stock has traded within a 52-week range of a low of $1.09 to a high of $7.47.

Integrated services: trading, storage, and technical maintenance.

Oriental Culture Holding LTD offers an online platform for e-commerce trading of artwork and collectibles, supplemented by integrated services:

• Online and offline integrated marketing.
• Storage services to customers.
• Technical maintenance services to customers.

Assurance of authenticity and quality for cultural assets.

The company operates through one segment, namely, e-commerce of artwork trading. The company recorded a loss from operations of approximately $4.5 million for the six months ended June 30, 2025, compared with an income from operations of approximately $2.1 million for the six months ended June 30, 2024. The net loss widened by 104.2% to approximately $3.8 million for H1 2025.

Provision of art investment education and market information.

The company's financial position as of June 30, 2025, included approximately $38.8 million in cash and approximately $39.1 million in working capital. The company's authorized share capital was increased from $50,000 to $500,000 on November 25, 2025.

Opportunity for portfolio diversification with cultural assets.

The company generates revenue through listing service fees and transaction fees. The company reported a gross profit of approximately $0.1 million for the six months ended June 30, 2025. The company's P/E Ratio is reported as -20.59.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Customer Relationships

You're looking at how Oriental Culture Holding LTD (OCG) manages its user base, especially after the turbulence from the shareholder investigation. The relationship strategy clearly splits between hands-on support for complex issues and relying on the platform for the everyday user.

Real-time customer support for trading and platform issues

The client software is designed to keep users engaged and supported directly within the trading environment. This isn't just static information; it's interactive support built in.

• Client software includes interactive functions like live discussion boards.
• Instant messaging is available with customer service representatives.
• The Company provides artwork warehousing services as part of its offering.

Internally, Oriental Culture Holding LTD collects and analyzes customer behavior and communications data from its systems in accordance with laws and regulations. This data informs the support structure, even if we don't have the specific H1 2025 support ticket resolution times.

High-touch, personalized service for institutional investors and dealers

When you look at the institutional side from an equity perspective, the ownership structure is very concentrated internally. This suggests that high-touch service, if it exists, is likely directed at platform dealers and high-value trading clients rather than broad institutional equity holders.

The low institutional ownership figure definitely frames the relationship focus away from broad institutional asset management servicing.

Automated, self-service platform for individual traders

The individual trader segment, which relies heavily on the self-service platform, saw a significant contraction in the first half of 2025. This drop in active users is the clearest indicator of the impact on this relationship channel.

• Active traders declined to 4,504 for the six months ended June 30, 2025.
• This is a year-over-year decline from 15,124 active traders in H1 2024.

The platform's self-service nature is tested when confidence wavers, as evidenced by the investigation that materially harmed customer confidence.

Building trust through secure transactions and asset warehousing

Trust hinges on the platform's stability and its ability to safeguard assets, which is critical given the nature of collectibles trading. The company's liquidity position as of mid-2025 provides a concrete number supporting its operational ability to maintain these services.

The total transaction value on the platform, which is the core activity requiring trust in secure transactions, also saw a reduction. Here's the quick math on that activity level:

To back up the warehousing and transaction security promises, Oriental Culture Holding LTD reported approximately $38.8 million in cash as of June 30, 2025. That cash position, along with working capital of approximately $39.1 million, is what underpins the commitment to asset safety and platform continuity. If onboarding takes 14+ days, churn risk rises, so maintaining this cash buffer is key to service reliability.

Finance: draft 13-week cash view by Friday.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Channels

You're looking at how Oriental Culture Holding LTD (OCG) gets its offerings-collectibles and artwork e-commerce services-to the customer, which is heavily skewed toward digital platforms based in Hong Kong and targeting the Chinese market. Honestly, the channel performance in the first half of 2025 shows significant headwinds.

Primary online trading platforms owned by Hong Kong subsidiaries

The core of OCG's channel strategy relies on its online platforms, which facilitate the trading of various collectibles and artworks. You can see the direct impact of channel usage in the transaction metrics reported for the first six months of 2025.

• Total transaction value on the platform for H1 2025 was approximately $61.5 million.
• This represents a decrease of 71.9% in total transaction fee revenue, which hit approximately $63,000 for the same period.
• The total transaction value for the comparable period in 2024 was approximately $86.8 million.
• The platform's initial launch date was September 2022, and as of January 2024, it reported a monthly active user count of 3,217.

Integrated online and offline marketing services in China

Oriental Culture Holding LTD also offers online and offline integrated marketing services as part of its business. While specific revenue attribution to the offline component is not broken out in the latest filings, the overall revenue picture for the first half of 2025 reflects challenges across the board.

The company's total revenues for the six months ended June 30, 2025, were only approximately $0.1 million, down from approximately $0.4 million for the same period in 2024. This suggests that whatever marketing channels are being used, customer engagement and transaction volume have dropped sharply.

Direct sales and service teams for large institutional clients

The business model includes facilitating trading for both individual and institutional customers. While specific data on the direct sales force size or its direct contribution to the $61.5 million total transaction value in H1 2025 isn't public, the company's structure supports serving these larger entities through its professional platforms.

The operational environment has been tough; the company reported a loss from operations of approximately $4.5 million for the first half of 2025, compared to an income from operations of approximately $2.1 million in H1 2024. This loss signals that the current channel structure isn't covering fixed and variable costs effectively right now.

Corporate website and investor relations for public communication

The corporate website, ocgroup.hk, serves as the primary hub for public communication, including SEC filings and investor presentations. For the investment community, the market's view of the company's reach and stability is reflected in its public trading metrics as of late 2025.

Here are some key public-facing financial and trading indicators:

Selling expenses, which would include costs related to maintaining the corporate website and investor outreach, were extremely low at approximately $2,000 for the first half of 2025, suggesting minimal spend in that specific category, defintely.

Finance: draft 13-week cash view by Friday.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Customer Segments

Individual collectors and art enthusiasts activity is reflected in the platform's overall transaction metrics for the first half of 2025.

Institutional investors seeking cultural asset diversification, art dealers and owners needing a trading and marketing platform, and cooperation e-commerce platforms requiring industry solutions collectively drove the total transaction value on the Oriental Culture Holding LTD online platforms.

• The total transaction value on the platform was approximately $61.5 million for the six months ended June 30, 2025.
• This figure represents a decrease from approximately $86.8 million recorded for the six months ended June 30, 2024.
• The average trading volume across the platform was reported at 38,114.

The revenue generated from these customer activities, primarily transaction fees, saw a corresponding change.

The company facilitates trading by individual and institutional customers of various collectibles, artworks, and commodities on its online platforms.

The company also provides industry solutions and related software products, suggesting a segment of business-to-business clients.

• Oriental Culture Holding LTD reported total revenues of approximately $0.1 million for the first half of 2025.
• The current Market Cap for Oriental Culture Holding LTD stood at $52.91M as of late 2025.
• The company employed 33 individuals.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Cost Structure

You're looking at the cost side of Oriental Culture Holding LTD (OCG)'s operations for the first half of 2025. The numbers show a significant shift in the expense profile, driven by non-cash compensation and a sharp drop in selling activity.

The overall cost structure resulted in a loss from operations of approximately $4.5 million for the six months ended June 30, 2025. This compares to an income from operations of approximately $2.1 million for the same period in 2024.

The key cost components driving this result include:

• Operating expenses, leading to a loss from operations of approximately $4.5 million in H1 2025.
• General and administrative costs, which saw decreases driven by lower spending on professional services and office overhead.
• Compensation expenses, which saw a major increase due to equity grants.
• Technical maintenance and development costs for the e-commerce platform.
• Low selling expenses, which saw a massive reduction.

Here's a closer look at the specific figures we have for H1 2025:

Drilling down into General and Administrative (G&A) expenses, the report details the components of the decrease in these costs, which helped offset other rising expenses. The reduction in G&A was due to:

• Decreased professional fees of approximately $0.2 million.
• Decreased office expenses of approximately $0.5 million.
• Decreased depreciation and amortization expenses of approximately $0.1 million.
• Decreased travel and meeting related fees of approximately $0.1 million.

Regarding technical costs, the company noted an investment in technology and operations, though not explicitly detailed as a standalone H1 2025 operating expense line item in the same way as compensation. The data indicates that the company invested approximately $1.5 million in information technology infrastructure and proprietary software, which aligns with the planned use of proceeds for platform enhancement.

The selling expenses are negligible, showing a near-total pullback in sales-related spending, decreasing by 98.3% to only approximately $2,000 for the first half of 2025.

Finance: draft 13-week cash view by Friday.

Oriental Culture Holding LTD (OCG) - Canvas Business Model: Revenue Streams

You're looking at the revenue streams for Oriental Culture Holding LTD (OCG) as of late 2025, specifically focusing on the first half of the year. The core of their revenue generation, as an online provider of collectibles and artwork e-commerce services, centers on transaction-based fees, though the overall volume has seen a significant drop.

The primary mechanisms for generating revenue on the OCG platform are:

• Transaction fees based on a percentage of total transaction value.
• Listing service fees charged to sellers on the platform.
• Other revenues from integrated marketing, storage, and technical services.

The financial performance for the first six months ended June 30, 2025, shows a sharp contraction in top-line revenue compared to the prior year period. Total revenues were approximately $0.1 million for the six months ended June 30, 2025. This compares to total revenues of approximately $0.4 million for the same period in 2024. This decline was materially impacted by a drop in customer activity; the number of customers who actively traded on the online platform decreased from 15,124 for the six months ended June 30, 2024, to just 4,504 for the same period in 2025. Honestly, that's a steep drop in the user base driving the revenue.

Breaking down the revenue components for H1 2025 reveals the following distribution based on the figures you provided:

The transaction fee revenue, which is generally calculated based on the transaction value of collectibles, artwork or commodities per transaction, saw a significant reduction. Transaction fee revenue was approximately $63,000 in H1 2025, down from $0.2 million in the comparable prior period. The platform typically charges a fee ranging from 0.15% to 0.3% of the transaction value from both the purchase and sale side of the transaction, resulting in an aggregate charge of 0.3% to 0.6% of the total transaction value. The listing service fees are charged to sellers for placing items on the platform. The remaining revenue stream, which includes integrated marketing, storage, and technical maintenance services offered by Oriental Culture Holding LTD (OCG), accounted for the residual amount of approximately $37,000 in H1 2025.

Here's a quick look at the key revenue drivers and their H1 2025 status:

• Transaction fee revenue: $63,000.
• Total revenues: $0.1 million.
• Active traders: Declined to 4,504.
• Gross margin: Improved to 84.7%.

The improved gross margin to 84.7% in H1 2025, up from 65.8% in H1 2024, is interesting given the revenue collapse, suggesting a much lower cost of revenue relative to the smaller sales base, possibly due to reduced operational scale or a shift in the mix of services provided.

Finance: draft 13-week cash view by Friday.