Company: NCL
Filing Date: 2025-01-14
Form Type: S-1/A
Source: 0001575872-25-000059
Chunk: 42

Company: Northann Corp.
Filing Date: 2025-01-14
Form: S-1/A
Chunk 42
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 not be subject to cybersecurity review and network data security review in the future. During such reviews, we may be required to
suspend our operations or experience other disruptions to our operations. Cybersecurity review and network data security review could
also result in negative publicity with respect to our Company and a diversion of our managerial and financial resources, which could materially
and adversely affect our business, financial conditions, and results of operations.

If we and/or our subsidiaries were to be required to obtain any permission or approval from or complete any filing procedure with the China Securities Regulatory Commission (the “CSRC”), the CAC, or other PRC governmental authorities in connection with future follow-on 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.

On February 17, 2023, the
CSRC promulgated the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (the “Trial
Measures”) and five supporting guidelines, which took effect on March 31, 2023. The Trial Measures requires companies in mainland
China that seek to offer and list securities overseas, both directly and indirectly, to fulfil the filing procedures with the CSRC. According
to the Trial Measures, the determination of the “indirect overseas offering and listing by companies in mainland China” shall
comply with the principle of “substance over form” and particularly, an issuer will be required to go through the filing procedures
under the Trial Measures if the following criteria are met at the same time: (i) 50% or more of the issuer’s operating revenue,
total profits, total assets or net assets as documented in its audited consolidated financial statements for the most recent accounting
year are accounted for by companies in mainland China; and (ii) the main parts of the issuer’s business activities are conducted
in mainland China, or its main places of business are located in mainland China, or the senior managers in charge of its business operation
and management are mostly Chinese citizens or domiciled in mainland China. On the same day, the CSRC held a press conference for the release
of the Trial Measures and issued the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Companies, which
clarifies that (i) on or prior to the effective date of the Trial Measures, companies in mainland China that have already submitted valid
applications for overseas offering and