Company: NCL
Filing Date: 2025-01-14
Form Type: S-1/A
Source: 0001575872-25-000059
Chunk: 19

Company: Northann Corp.
Filing Date: 2025-01-14
Form: S-1/A
Chunk 19
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 offerings under PRC laws, we and/or our subsidiaries may be fined or subject to other sanctions, and 
 our subsidiaries’ business and our reputation, financial condition, and results of operations may be materially and adversely affected.  |

| · | PRC regulations relating to offshore investment activities by PRC residents may subject our PRC resident                                
 beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiary, limit 
 our PRC subsidiary’s ability to increase its registered capital or distribute profits to us, or may otherwise adversely affect us.      |

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

| · | Under the EIT Law, we may be classified as a PRC “resident enterprise” for PRC enterprise                                                
 income tax purposes. Such classification would likely result in unfavorable tax consequences to us and our non-PRC stockholders and have 
 a material adverse effect on our results of operations and the value of your investment.                                                 |

| · | We face uncertainty with respect to indirect transfers of equity interests in PRC resident enterprises 
 by their non-PRC holding companies.                                                                    |

| · | The M&A Rules and certain other PRC regulations establish complex procedures for some acquisitions                                   
 of Chinese companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China. |

Risks Related to Our Common Stock, this Offering, and Our Status as a Public Company

| · | Our common stock may be delisted or prohibited from being traded on a national exchange under the Holding                          
 Foreign Companies Accountable Act (the “HFCA Act”) and the Consolidated Appropriations Act, 2023, if the Public Company Accounting 
 Oversight Board (the “PCAOB”) is unable to inspect our auditors for two consecutive years. The delisting of our common stock,      
 or the threat of their being delisted, may materially and adversely affect the value of your investment.                           |

| · | The purchase price for our common stock may not be indicative of prices that will prevail in the trading 
 market and such market prices may be volatile.                                                           |

| · | You may experience extreme stock price volatility, including any stock-run up, unrelated to our actual                                   
 or expected operating performance, financial condition or prospects, making it difficult for prospective investors to assess the rapidly 
 changing value of our common stock.                                                                                                      |

| · | R