Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 121

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 121
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 legal protection we enjoy than in more developed legal systems. These uncertainties may impede
our ability to enforce the contracts we have entered into and could materially and adversely affect our business and results of operations.

Furthermore, 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 and may have retroactive effect.
As a result, we may not be aware of our violation of any of these policies and rules until sometime after the violation. Such unpredictability
towards our contractual, property (including intellectual property) and procedural rights could adversely affect our business and impede
our ability to continue our operations.

These government involvements have been instrumental
in China’s significant growth in the past 30 years. In response to the recent global and Chinese economic downturn, the PRC
government has adopted policy measures aimed at stimulating the economic growth in China. If the PRC government’s current or future
policies fail to help the Chinese economy achieve further growth or if any aspect of the PRC government’s policies limits the growth
of our industry or otherwise negatively affects our business, our growth rate or strategy, our results of operations could be adversely
affected as a result.

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Changes in China’s economic, political or social conditions or government policies could have a material adverse effect on our business and results of operations.

All of our operations are located in China. Accordingly,
our business, prospects, financial condition and results of operations may be influenced to a significant degree by political, economic
and social conditions in China generally and by continued economic growth in China as a whole.

The Chinese economy differs from the economies
of most developed countries in many respects, including the amount of government involvement, level of development, growth rate, control
of foreign exchange and allocation of resources. Although the Chinese government has implemented measures emphasizing the utilization
of market forces for economic reform, the reduction of state ownership of productive assets and the establishment of improved corporate
governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In addition,
the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. The Chinese
government also exercises significant control over China’s economic growth through allocating resources, controlling payment of
foreign currency-denominated obligations, setting monetary policy, and providing preferential treatment to particular industries or companies.

While the Chinese economy has experienced significant
growth over the past decades, growth