Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 117

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 117
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 of SAFE with respect to that SPV, to reflect any material
change. Moreover, any subsidiary of such SPV in China is required to urge the PRC resident shareholders to update their registration with
the local branch of SAFE to reflect any material change. If any PRC resident shareholder of such SPV fails to make the required registration
or to update the registration, the subsidiary of such SPV in China may be prohibited from distributing its profits or the proceeds from
any capital reduction, share transfer or liquidation to the SPV, and the SPV may also be prohibited from making additional capital contributions
into its subsidiaries in China. In February, 2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration
Policy on Direct Investment, or SAFE Notice 13. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign
direct investments and outbound direct investments, including those required under SAFE Circular 37, must be filed with qualified banks
instead of SAFE. Qualified banks should examine the applications and accept registrations under the supervision of SAFE. We
have used our best efforts to notify PRC residents or entities who directly or indirectly hold shares in our Cayman Islands holding company
and who are known to us as being PRC residents to complete the foreign exchange registrations. However, we may not be informed of the
identities of all the PRC residents or entities holding direct or indirect interest in our company, nor can we compel our beneficial owners
to comply with SAFE registration requirements. We cannot assure you that all other shareholders or beneficial owners of ours who are PRC
residents or entities have complied with, and will in the future make, obtain or update any applicable registrations or approvals required
by, SAFE regulations. Failure by such shareholders or beneficial owners to comply with SAFE regulations, or failure by us to amend the
foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border
investment activities, and limit our PRC subsidiaries’ ability to make distributions or pay dividends to us or affect our ownership
structure, which could adversely affect our business and prospects.

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Furthermore, as these foreign exchange and outbound
investment related regulations are relatively new and their interpretation and implementation has been constantly evolving, it is unclear
how these regulations, and any future regulation concerning offshore or cross-border investments and transactions, will be interpreted,
amended and implemented by the relevant government authorities. For example,