Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 127

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 127
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 has not developed a fully
integrated legal system and recently enacted laws and regulations may not sufficiently cover all aspects of economic activities in China.
In particular, because these laws and regulations are relatively new, and because of the limited volume of published decisions and their
nonbinding nature, the interpretation and enforcement of these laws and regulations involve uncertainties. In addition, the PRC legal
system is based in part on government policies and internal rules (some of which are not published on a timely basis or at all) that may
have a retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after the violation.
In addition, any litigation in China may be protracted and result in substantial costs and diversion of resources and management attention.

PRC regulation of loans and direct investment
by offshore holding companies to PRC entities may delay or prevent us from using the proceeds of this offering to make loans or additional
capital contributions to the PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand
our business.

<div align='center'>22</div>

In utilizing the proceeds of this offering
in the manner described in “Use of Proceeds” on page 33 of this prospectus, as an offshore holding company of our PRC
operating subsidiaries, we may make loans to our PRC subsidiaries, or we may make additional capital contributions to our PRC
subsidiaries.

Any loans to our PRC subsidiaries are subject
to PRC regulations. For example, loans by us to our subsidiaries in China, which are foreign invested entities (“FIEs”), to
finance their activities cannot exceed statutory limits and must be registered with SAFE. On March 30, 2015, SAFE promulgated
Hui Fa 2015 No.19, a notice regulating the conversion by a foreign-invested company of foreign currency into RMB. The foreign exchange
capital, for which the monetary contribution has been confirmed by the foreign exchange authorities (or for which the monetary contribution
has been registered for account entry) in the capital account of a foreign-invested enterprise may be settled at a bank as required by
the enterprise’s actual management needs. Foreign-invested enterprises with investment as their main business (including foreign-oriented
companies, foreign-invested venture capital enterprises and foreign-invested equity investment enterprises) are allowed to, under the
premise of authenticity and compliance of their domestic investment projects, carry out based on