Company: NCL
Filing Date: 2025-11-14
Form Type: 424B3
Source: 0001575872-25-000688
Chunk: 47

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 424B3
Chunk 47
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 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 investment.

The value of the Chinese Yuan (RMB) against the
U.S. dollar and other major currencies continues to experience fluctuations influenced by political and economic conditions in China,
as well as the country’s foreign exchange policies. Over the past decade, the RMB has shifted from a fixed exchange rate to a managed
floating exchange rate regime, with significant periods of volatility. For example, in 2024, the RMB faced depreciation pressures due
to slower-than-expected economic recovery in China and a strengthening U.S. dollar, prompting intervention from the People’s Bank
of China (PBOC) to stabilize the currency. The exchange rate fluctuated within a range of approximately 1 USD = 7.0103 RMB to 1 USD =
7.2981 RMB during this period.

The depreciation trend observed in 2023 was partly
attributed to ongoing geopolitical tensions, persistent trade