Company: NCL
Filing Date: 2025-11-14
Form Type: 424B3
Source: 0001575872-25-000688
Chunk: 40

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 424B3
Chunk 40
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 in which we operate. We could be subject to regulation by various political and regulatory
entities, including various local and municipal agencies and government sub-divisions. We may incur increased costs necessary to comply
with existing and newly adopted laws and regulations or penalties for any failure to comply.

Although we believe that we are in compliance
with existing and newly adopted laws and regulations of the PRC, we cannot assure you that PRC regulatory agencies would take the same
view as we do, and there is no assurance that we can fully or timely comply with such laws. In the event that we are subject to any mandatory
review and other specific actions required by any Chinese regulator, we face uncertainty as to whether any clearance or other required
actions can be timely completed, or at all. Given such uncertainty, we may be further required to suspend our relevant business, shut
down our website, or face other penalties, which could materially and adversely affect our business, financial condition, and results
of operations. Any future action by the PRC government could significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and could cause the value of such securities to significantly decline or be worthless.

| 19 |

If the Chinese government chooses to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers, such action could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

We face risks arising from China including risks
and uncertainties regarding the enforcement of laws and that rules and regulations in China can change quickly with little advance notice.
The Chinese government may intervene or influence the operations of our subsidiaries in PRC and Hong Kong at any time, or may exert more
control over offerings conducted overseas and/or foreign investment in China-based issuers, which could result in a material change in
the operations of our subsidiaries in PRC and Hong Kong and/or the value of our common stock.

The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China through our subsidiaries in PRC and Hong Kong may be harmed by changes in laws and regulations in China, including
those relating to securities regulation, data protection, cybersecurity and mergers and acquisitions and other matters. The PRC central
or local governments may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures
and efforts on our