Company: LICN
Filing Date: 2025-01-29
Form Type: 424B5
Source: 0001213900-25-007741
Chunk: 120

Company: Lichen International Ltd
Filing Date: 2025-01-29
Form: 424B5
Chunk 120
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 into Renminbi and use of the proceeds. On March 30, 2015, SAFE promulgated Circular 19, which
took effect and replaced certain previous SAFE regulations from June 1, 2015. SAFE further promulgated Circular 16, effective on
June 9, 2016, which, among other things, amend certain provisions of Circular 19. According to SAFE Circular 19 and SAFE Circular
16, the flow and use of the Renminbi capital converted from foreign currency denominated registered capital of a foreign-invested company
is regulated such that Renminbi capital may not be used for business beyond its business scope or to provide loans to persons other than
affiliates unless otherwise permitted under its business scope. Violations of the applicable circulars and rules may result in severe
penalties, including substantial fines as set forth in the Foreign Exchange Administration Regulations. SAFE Circular 19 and SAFE Circular
16 may significantly limit our ability to use Renminbi converted from the net proceeds of this offering to fund our PRC operating subsidiaries,
to invest in or acquire any other PRC companies through our PRC Subsidiaries, which may adversely affect our business, financial condition
and results of operations.

Adverse changes in political and economic policies of the PRC government could have a material adverse effect on the overall economic growth of China, which could reduce the demand for our products and services and materially and adversely affect our competitive position.

Substantially all of our business operations are
conducted in China. Accordingly, our business, results of operations, financial condition and prospects are subject to economic, political
and legal developments in China. Although the Chinese economy is no longer a planned economy, the PRC government continues to exercise
significant control over China’s economic growth through direct allocation of resources, monetary and tax policies, and a host of
other government policies such as those that encourage or restrict investment in certain industries by foreign investors, control the
exchange between RMB and foreign currencies, and regulate the growth of the general or specific market.

From time to time, we may have to resort to administrative
and court proceedings to enforce our legal rights. Any administrative and court proceedings in China may be protracted, resulting in substantial
costs and diversion of resources and management attention. Since PRC administrative and court authorities have significant discretion
in interpreting and implementing statutory provisions and contractual terms, it may be more difficult to evaluate the outcome of administrative
and court proceedings and the level of