Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 72

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 72
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 company. As a holding company with no material operations of its own, it conducts all of its operations
and operates its business in China through its PRC subsidiaries. Because of our corporate structure as a Cayman Islands holding company
with operations conducted by our PRC subsidiaries, it involves unique risks to investors. Furthermore, Chinese regulatory authorities
could change the rules and regulations regarding foreign ownership in the industry in which the Company operates, which would likely result
in a material change in our operations and/or a material change in the value of the securities we are registering for sale, including
that it could cause the value of such securities to significantly decline or become worthless. Investors in our ordinary shares should
be aware that they do not directly hold equity interests in the Chinese operating entities, but rather are purchasing equity solely in
Lichen China Limited, our Cayman Islands holding company, which indirectly owns 100% equity interests in the PRC subsidiaries. Our ordinary
shares offered in this offering are shares of our Cayman Islands holding company instead of shares of our subsidiaries in China. See “Risk
Factors — Risks Related to Doing Business in China — The filing, approval or other administration requirements
of the Chinese Securities Regulatory Commission (the “CSRC”) or other PRC government authorities may be required in connection
with our future offshore offering under PRC law, and, if required, we cannot predict whether or for how long we will be able to complete
the filing procedure with the CSRC and obtain such approval or complete such filing, as applicable.” on page 14.

Investing in our ordinary shares involves a high degree of risk. Before buying any ordinary shares, you should carefully read the discussion of material risks of investing in our ordinary shares in “Risk Factors” beginning on page 13 of this prospectus.

The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations,
land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations
or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance
with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support
recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic
policies