Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 132

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 132
---
products of foreign manufacturers or products relying on foreign inputs.

Since July 2005, the RMB is no longer pegged
to the U.S. dollar. Although the People’s Bank of China regularly intervenes in the foreign exchange market to prevent significant
short-term fluctuations in the exchange rate, the RMB may appreciate or depreciate significantly in value against the U.S. dollar
in the medium to long term. Moreover, it is possible that in the future PRC authorities may lift restrictions on fluctuations in the RMB
exchange rate and lessen intervention in the foreign exchange market.

Increases in labor costs in the PRC may adversely affect our business and results of operations.

The currently effective PRC Labor Contract Law, or the Labor Contract Law was first adopted on June 29, 2007 and later amended on December 28, 2012. The PRC Labor
Contract Law has reinforced the protection of employees who, under the Labor Contract Law, have the right, among others, to have written
employment contracts, to enter into employment contracts with no fixed term under certain circumstances, to receive overtime wages and
to terminate or alter terms in labor contracts. Furthermore, the Labor Contract Law sets forth additional restrictions and increases the
costs involved with dismissing employees. To the extent that we need to significantly reduce our workforce, the Labor Contract Law could
adversely affect our ability to do so in a timely and cost-effective manner, and our results of operations could be adversely affected.
In addition, for employees whose employment contracts include noncompetition terms, the Labor Contract Law requires us to pay monthly
compensation after such employment is terminated, which will increase our operating expenses.

We expect that our labor costs, including wages
and employee benefits, will continue to increase. Unless we are able to pass on these increased labor costs to our buyers by increasing
the prices of our products and services, our financial condition and results of operations would be materially and adversely affected.

We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal information provided by our customers.

We may become subject to a variety of laws and
regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. These laws and regulations are continuously
evolving and developing. The scope and interpretation of the laws that are or may be applicable to us are often uncertain and may be conflicting,
particularly with respect to foreign laws