Company: NCL
Filing Date: 2025-11-14
Form Type: 424B3
Source: 0001575872-25-000688
Chunk: 46

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 424B3
Chunk 46
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 the necessary permissions from or completing the necessary
filing procedures with the PRC governmental authorities to conduct offerings outside of Hong Kong or mainland China, which could cause
the value of our shares of common stock to significantly decline or be worthless.

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.

In July 2014, SAFE promulgated the Circular on
Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment
Through Special Purpose Vehicles, or SAFE Circular 37, to replace the Notice on Relevant Issues Concerning Foreign Exchange Administration
for Domestic Residents’ Financing and Roundtrip Investment Through Offshore Special Purpose Vehicles, or SAFE Circular 75, which
ceased to be effective upon the promulgation of SAFE Circular 37. SAFE Circular 37 requires PRC residents (including PRC individuals and
PRC corporate entities) to register with SAFE or its local branches in connection with their direct or indirect offshore investment activities.
SAFE Circular 37 is applicable to our stockholders who are PRC residents and may be applicable to any offshore acquisitions that we make
in the future.

Under SAFE Circular 37, PRC residents who make,
or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose vehicles, or
SPVs, will be required 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