Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 110

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 19
Chunk 110
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 in the local
currency, Renminbi (RMB), as its functional currency. The functional currency of the Company’s entities incorporated in Hong Kong
is the Hong Kong dollars (“ HK$”). The determination of the respective functional currency is based on the criteria of Accounting
Standard Codification (“ ASC”) 830, Foreign Currency Matters. Assets and liabilities are translated at the unified exchange
rate as quoted by the PBOC (“ The People’s Bank of China”) at the balance sheet date. The statement of income accounts
is translated at the average exchange rates for the periods and the equity accounts are translated at historical rates. Translation adjustments
resulting from this process are included in accumulated other comprehensive income (loss). Transaction gains and losses that arise from
exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of
operations as incurred.

Translation adjustments included in accumulated other comprehensive
loss amounted to4.00million,3.43million and $2.00million as of December 31, 2024, 2023 and 2022, respectively. The shareholders’
equity accounts were stated at their historical rate. Cash flows are also translated at average translation rates for the periods, therefore,
amounts reported on the consolidated statement of cash flows will not necessarily agree with changes in the corresponding balances on
the consolidated balance sheets.

Translation of foreign currencies into US$1have
been made at the following exchange rates for the respective periods:

                                          December 31,                  December 31,                  December 31,              
                                                                                                                                
                                          2024                          2023                          2022                      
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Period-end RMB: US$1 exchange rate                        7.1884                        7.0827                        6.9646  
  Period-end HK$: US$1 exchange rate                        7.7625                        7.8157                        7.7967  

                                              December 31,                  December 31,                  December 31,              
                                                                                                                                    
                                              2024                          2023                          2022                      
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Period-average RMB: US$1 exchange rate                        7.1217                        7.0467                        6.7261  
  Period-average HK$: US$1 exchange rate                        7.8024