(OCG) – Eastern Stocks Trade Lower Amid FY20 Profits Fall and Margin Shrinks
- Oriental Culture Holding Ltd (NASDAQ: OCG) reported revenue growth of 29.7% for fiscal year 20 to $ 17.4 million.
- Newly listed products and the opening of new accounts were responsible for most of the positive rebound in OCG’s performance in the second half of 2020, which generated sales primarily through item listing services. collection and artwork, marketing services and transaction fees, said CFO Fiona Ni.
- There were 303 types of collectibles, works of art and products listed on OCG’s platforms, 303 as of December 31, 2020, a growth of 163%.
- OCG had also opened 95,000 new accounts on the company’s trading platforms in 2020, a growth of 44%.
- The gross margin contracted 520 basis points to 85.1%. The operating margin contracted by 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. He held $ 24 million in cash and cash equivalents.
- President Lewis Wan remained optimistic about a vaccine-focused recovery, quantitative easing and a low interest rate. The online art and collectibles markets will continue to attract vital investor interests as investor and collector confidence grows with the rise of the Chinese economy and the middle class, Wan said. .
- Price action: OCG shares traded down 8.18% to $ 6.06 in the last check on Friday.
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