Lichen China finalizes acquisition of Bondly Enterprises

XIAMEN, China - Lichen China Limited (NASDAQ: LICN), a prominent financial and taxation service provider with impressive gross profit margins of 60.71% and a strong financial health rating according to InvestingPro, announced today the completion of its acquisition of Bondly Enterprises Limited, a consulting firm known for its business process management and technology solutions. This purchase of the remaining 40% equity interest in Bondly, valued at $5.33 million, follows Lichen China’s initial 60% stake acquisition in 2024.

With this transaction, Bondly becomes a wholly-owned subsidiary of Lichen China, allowing for a full integration of Bondly’s advanced technologies and AI capabilities into Lichen China’s operations. The move is seen as a strategic effort to strengthen Lichen China’s position in AI and technology sectors, as well as to enhance its product offerings, including the Lichen AI Robot. The company’s solid financial foundation, with a current ratio of 17.55 and revenue growth of 24.86% in the last twelve months, positions it well for this expansion. (InvestingPro subscribers have access to 12 additional key insights about LICN’s financial health and growth potential.)

Bondly, under the leadership of Mr. Zisu Zhou, has been a leader in digital transformation, offering a proprietary AWS BPM system that enhances operational efficiency for its clients. The acquisition is expected to capitalize on Bondly’s technological expertise and its strong client base to boost Lichen China’s growth and innovation in AI-driven solutions.

Mr. Ya Li, Chairman and CEO of Lichen China, expressed that the full acquisition is set to solidify the company’s control over Bondly’s operations and expedite the development of AI solutions. The synergy between Lichen China and Bondly is anticipated to drive revenue growth and provide a competitive edge in the financial and AI sectors.

Lichen China, with over 18 years of experience in the financial and taxation services industry, has established a reputation for delivering professional services in China. The company’s expansion into AI underscores its commitment to evolving its service offerings in line with technological advancements.

Investors are advised that certain statements in the announcement regarding the integration and growth potential are forward-looking and subject to risks and uncertainties. Based on InvestingPro’s Fair Value analysis, the stock currently appears undervalued, though market volatility remains high. Lichen China has stated that it does not intend to update these forward-looking statements except as required by law.

This article is based on a press release statement from Lichen China Limited.

In other recent news, Lichen China Limited has made significant strides in its financial operations and technological advancements. The company announced a registered direct offering of Class A ordinary shares and pre-funded warrants, aiming to raise approximately $3.4 million. The offering includes the sale of 42,500,000 shares, with Univest Securities, LLC serving as the exclusive placement agent for the deal.

In another development, Lichen China plans to integrate the DeepSeek optimization framework into its proprietary Lichen Financial and Taxation AI Model. This move is expected to enhance the AI’s ability to manage complex financial and taxation tasks, with completion slated for the end of the second quarter of 2025.

Furthermore, Lichen China reached a definitive agreement with several investors for a registered direct offering involving the sale of 20 million Class A ordinary shares or pre-funded warrants, anticipating approximately $2.8 million in gross proceeds. Univest Securities, LLC is the sole placement agent for this offering as well.

These are recent developments in the company’s operations, reflecting its commitment to financial growth and technological innovation.

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