Lichen International Ltd (NASDAQ: LICN)

Lichen International Limited is a holding company incorporated in the Cayman Islands that derives its value from operating subsidiaries located in the People's Republic of China. The company’s primary activities are conducted through its wholly owned PRC subsidiary Lichen Zixun which provides professional services in the fields of financial and taxation solutions education support software and maintenance and IPO advisory. Lichen International Limited does not engage in any direct operations itself but relies on dividends and distributions from its subsidiaries to meet its cash and financing requirements. The company’s structure includes intermediate holding entities in the British Virgin Islands and Hong Kong that own the PRC operating company. As of the date of this report the company has not transferred any cash or assets between the holding company and its subsidiaries.

Lichen International Limited generates revenue mainly from fees charged for professional services rendered by its subsidiaries. Financial and taxation solution services bring income through consultation projects internal control assessments annual or regular advisory sessions and internal training programs. Education support services historically earned revenue from marketing operational and technical support provided to Partnered Institutions and from the sale of teaching and learning materials to those institutions. Software and maintenance services produce revenue from the sale of financial and taxation analysis software financial and taxation training software and related after sales support such as installation training and technical assistance. IPO advisory services launched in 2025 generate revenue from fees paid by prospective listed enterprises for market research financial compliance due diligence and placement fee arrangements. Revenue is recognized on a case by case basis for consulting projects and as sales occur for software products. The company does not rely on a single customer for more than ten percent of its total revenue.

The company operates through the following segments:

• Financial and Taxation Solution Services. This segment provides customized financial and taxation related management consultation internal control management consultation annual or regular consultation and internal training and general consultation to enterprise customers in China. The team consists of 47 external experts and 285 internal consultants many of whom hold certified public accountant or tax agent qualifications and advanced degrees. Services are delivered after a preliminary assessment proposal on‑site inspection and diagnosis report preparation followed by implementation guidance and training. Fees are negotiated in advance and collected in phases of each engagement.

• Education Support Services. This segment offered marketing operational and technical support to Partnered Institutions that run seminars talks and training courses for entrepreneurs and financial and taxation practitioners. It also generated revenue from the sale of teaching and learning materials covering accounting licensing accounting practice financial management financial tools non‑financial management and taxation practice. The company has terminated this segment effective August 2025 and no longer provides these services.

• Software and Maintenance Services. This segment develops and sells financial and taxation analysis software namely Enterprise Financial Intelligence Analysis System V1.0 and a suite of financial and taxation training software. It provides after sales support including installation training and remote technical assistance for one year after purchase. The software is designed to help enterprise customers improve business management processes and to assist Partnered Institutions in illustrating accounting tasks for their students. The segment employs 18 software technicians with an average of more than seventeen years of experience.

• IPO Advisory Services. Launched in 2025 this segment delivers comprehensive service solutions to prospective listed enterprises seeking to list on U S or Hong Kong stock exchanges. Services include market research financial compliance due diligence and assistance with private equity funding arrangements. The agreement stipulates a fixed annual fee payable in installments and a placement fee equal to five percent of the total proceeds raised from a listing or five percent of the amount of private equity funding introduced. The segment emphasizes confidentiality exclusivity and remedial measures for breach of contract.

Lichen International Limited holds a leading position in China’s financial and taxation solution services market as noted by an independent Frost & Sullivan report that cites the company among the top providers of such services. The firm has been recognized for fourteen consecutive years as one of the Top 50 Providers of Management Consulting Services by the China Enterprise Confederation Management Advisory Committee and entered the Top 10 ranking in 2024. Over twenty years of operation have built a solid reputation and a deep bench of qualified professionals. Competitive advantages include a large team of internal consultants and external experts many of whom are certified public accountants or tax agents with advanced degrees and university teaching experience. The company’s ability to bundle consulting software education support and IPO advisory services creates cross‑selling opportunities that differentiate it from rivals that focus on a single service line.

The customer base of Lichen International Limited consists primarily of business enterprises across diverse industries such as manufacturing wholesale retail food processing information technology software construction property development commercial financial services agriculture fishery catering hotel accommodation transportation postal services warehousing telecommunication broadcasting media research and development oil refinery gas or electricity supply environment management public facilities management culture sports and entertainment water supply repairs and public administration. The company also serves state owned enterprises government authorities listed companies and small and medium sized enterprises. For its education support segment the customers were Partnered Institutions that operate seminars talks and training courses. Software and maintenance customers include enterprises that purchase financial and taxation analysis and training software as well as universities colleges and other educational institutes that use the software for instructional purposes. IPO advisory clients are prospective listed enterprises seeking assistance with the listing process. No single customer accounts for more than ten percent of total revenue.