Company: NCL
Filing Date: 2025-09-26
Form Type: S-1
Source: 0001575872-25-000602
Chunk: 48

Company: Northann Corp.
Filing Date: 2025-09-26
Form: S-1
Chunk 48
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 to register such investments with SAFE or its local branches. In addition, any PRC resident who is a direct or
indirect stockholder of an SPV is required to update its filed registration with the local branch of SAFE with respect to that SPV, to
reflect any material change. Moreover, any subsidiary of such SPV in China is required to urge the PRC resident stockholders to update
their registration with the local branch of SAFE. If any PRC stockholder of such SPV fails to make the required registration or to update
the previously filed registration, the subsidiary of such SPV in China may be prohibited from distributing its profits or the proceeds
from any capital reduction, share transfer or liquidation to the SPV, and the SPV may also be prohibited from making additional capital
contributions into its subsidiary in China. On February 13, 2015, SAFE promulgated a Notice on Further Simplifying and Improving
Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13, which became effective on June 1, 2015. Under SAFE
Notice 13, applications for foreign exchange registration of inbound foreign direct investments and outbound overseas direct investments,
including those required under SAFE Circular 37, will be filed with qualified banks instead of SAFE. The qualified banks will directly
examine the applications and accept registrations under the supervision of SAFE.

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We are aware that some of our stockholders are
subject to SAFE regulations, and expect all of these stockholders will have completed all necessary registrations with the local SAFE
branch or qualified banks as required by SAFE Circular 37. We cannot assure you, however, that all of these stockholders may continue
to make required filings or updates in a timely manner, or at all. We can provide no assurance that we are, or will in the future continue
to be informed of the identities of all PRC residents holding a direct or indirect interest in our common stock. Any failure or inability
by such stockholders to comply with SAFE regulations may subject us to fines or legal sanctions, such as restrictions on our cross-border
investment activities or our PRC subsidiaries’ ability to distribute dividends to, or obtain foreign exchange-denominated loans
from, our company or prevent us from making distributions or paying dividends. As a result, our business operations and our ability to
make distributions to you could be materially and adversely affected.

Fluctuations in exchange rates could have a material adverse effect on our results of operations and the value of your