Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 131

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 131
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. These reserves are not distributable as cash dividends. These limitation on the ability of our PRC subsidiaries to pay
dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments, or acquisitions
that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

Our business may be materially and adversely affected if any of our PRC subsidiary declare bankruptcy or become subject to a dissolution or liquidation proceeding.

The Enterprise Bankruptcy Law of the PRC, or the
Bankruptcy Law, came into effect on June 1, 2007. The Bankruptcy Law provides that an enterprise will be liquidated if the enterprise
fails to settle its debts as and when they fall due and if the enterprise’s assets are, or are demonstrably, insufficient to clear
such debts.

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Our PRC subsidiaries hold certain assets that
are important to our business operations. If our PRC subsidiaries undergo a voluntary or involuntary liquidation proceeding, unrelated
third-party creditors may claim rights to some or all of these assets, thereby hindering our ability to operate our business, which could
materially and adversely affect our business, financial condition and results of operations.

Fluctuations in exchange rates could adversely affect our business and the value of our securities.

Changes in the value of the RMB against the U.S. dollar,
Euro and other foreign currencies are affected by, among other things, changes in China’s political and economic conditions. Any
significant revaluation of the RMB may have a material adverse effect on our revenues and financial condition, and the value of, and any
dividends payable on our shares in U.S. dollar terms. For example, to the extent that we need to convert U.S. dollars we receive
from our initial public offering into RMB for our operations, appreciation of the RMB against the U.S. dollar would have an adverse
effect on RMB amount we would receive from the conversion. Conversely, if we decide to convert our RMB into U.S. dollars for the
purpose of paying dividends on our Class A ordinary shares or for other business purposes, appreciation of the U.S. dollar against
the RMB would have a negative effect on the U.S. dollar amount available to us. In addition, fluctuations of the RMB against other
currencies may increase or decrease the cost of imports and exports, and thus affect the price-competitiveness of our products against