Company: NCL
Filing Date: 2025-11-14
Form Type: 424B3
Source: 0001575872-25-000688
Chunk: 36

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 424B3
Chunk 36
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 from using the proceeds of offshore offerings to make loans or additional capital contributions to the PRC subsidiaries, which could materially and adversely affect their liquidity and their ability to fund and expand their business.

We are an offshore holding
company conducting our operations in the U.S. and Hong Kong through offshore subsidiaries and in China through the PRC subsidiaries, to
which we can make loans and make additional capital contributions. Most of these loans or contributions to our PRC subsidiaries are subject
to PRC regulations and approvals or registration. For example, any loans to the PRC subsidiaries, which are treated as foreign-invested enterprises
under PRC law, are subject to PRC regulations and foreign exchange loan registrations. Furthermore, loans made by us to the PRC subsidiaries
to finance their activities cannot exceed statutory limits and must be registered with the local counterpart of SAFE, or filed with SAFE
in its information system. Pursuant to relevant PRC regulations, we may provide loans to the PRC subsidiaries up to the larger amount
of (i) the balance between the registered total investment amount and registered capital of these entities, or (ii) twice the
amount of the net assets of these entities calculated in accordance with the Circular on Full-Coverage Macro-Prudent Management
of Cross-Border Financing, or the “PBOC Circular 9.” Moreover, any medium or long-term loan to be provided by us
to the PRC subsidiaries, or other domestic PRC entities must also be filed and registered with the National Development and Reform Commission
(the “NDRC”). We may also decide to finance the PRC subsidiaries by means of capital contributions. These capital contributions
are subject to registration with the SAMR or its local branch, reporting of foreign investment information with the Ministry of Commerce
of the PRC (the “MOFCOM”), or registration with other governmental authorities in China.

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On March 30, 2015,
SAFE issued the Notice of the State Administration of Foreign Exchange on Reforming the Administrative Approach Regarding the Settlement
of the Foreign Exchange Capital of Foreign-invested Enterprises, or “SAFE Circular 19,” which took effect and replaced
previous regulations effective on June 1, 2015, and was amended on December 30, 2019. Pursuant to SAFE Circular 19, up
to 100% of foreign currency capital of a foreign-invested enterprise may be converted into RMB capital according to the actual operation,
and within the business scope, of the enterprise