Company: LICN
Filing Date: 2025-04-29
Form Type: 20-F
Source: 0001213900-25-036244
Chunk: 4

Company: Lichen International Ltd
Filing Date: 2025-04-29
Form: 20-F
Item: Item 3
Chunk 4
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 a minimum, 10% of their net income after taxes, based on PRC accounting standards, each year as statutory surplus reserves until the cumulativ...  

  Such reserves may not be distributed as cash dividends;  
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  Our PRC subsidiaries may also allocate a portion of their after-tax profits to fund their staff welfare and bonus funds; except in the event of a liquidation, these funds may also not be distri...  
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  The incurrence of debt, specifically the instruments governing such debt, may restrict a subsidiary’s ability to pay shareholder dividends or make other cash distributions.  
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If,
for the reasons noted above, our subsidiaries are unable to pay shareholder dividends and/or make other cash payments to the Company when
needed, the Company’s ability to conduct operations, make investments, engage in acquisitions, or undertake other activities requiring
working capital may be materially and adversely affected. However, our operations and business, including investment and/or acquisitions
by our subsidiaries within China, will not be affected as long as the capital is not transferred in or out of the PRC.

During
the fiscal years ended December 31, 2020, Lichen Zixun made dividend payments of RMB30 million (approximately $4.3 million) to the then
eventual shareholders of Lichen Zixun, who are PRC individuals. On February 10, 2023, Lichen International Limited made payments of $6
million to its subsidiary Legend Consulting BVI for investment. As of the date of this report, other than the above stated, no dividends,
distributions or transfers has been made between Lichen International Limited and any of its subsidiaries. As of the date of this report,
the Company or its subsidiaries have made no other transfers, dividends, or distributions to investors and no investors have made transfers,
dividends, or distributions to the Company or its subsidiaries.

For
the foreseeable future, the Company intends to use the earnings for research and development, to develop new products and to expand its
production capacity. As a result, we do not expect to pay any cash dividends in the foreseeable future. Also, as of the date of this report,
no cash generated from