- Oriental Culture Holding Ltd (NASDAQ: OCG) reported FY20 revenue growth of 29.7% to $17.4 million.
- Newly listed products and new accounts opening have driven most of the positive rebound in OCG’s performance in the second half of 2020, which generated sales mainly from the collectibles and artwork listing services, marketing services, and transaction fees, CFO Fiona Ni said.
- There were 303 types of collectibles, artwork, and commodities listed on OCG’s platforms were 303 as of Dec. 31, 2020, representing a 163% growth.
- OCG also had opened 95,000 new accounts on the company’s trading platforms in 2020, representing a 44% growth.
- The gross margin contracted 520 basis points to 85.1%. Operating margin contracted 5,750 basis points to 9.5%.
- Net income declined 77.5% to $2 million, with EPS of $0.13.
- The company generated $8.1 million in operating cash flow. It held $24 million in cash and equivalents.
- Chair Lewis Wan remained optimistic towards a vaccine-driven recovery, quantitative easing, and low interest rate. The online artwork and collectible trading markets will continue to attract vital investor interests as investor and collector confidence grows with the rise of China’s economy and the middle class, stated Wan.
- Price action: OCG shares traded lower by 8.18% at $6.06 on the last check Friday.
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