Company: NCL
Filing Date: 2025-11-14
Form Type: 424B3
Source: 0001575872-25-000688
Chunk: 35

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 424B3
Chunk 35
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 conditions in China, in the policies of the Chinese government, or in the laws and regulations
in China could have a material adverse effect on the overall economic growth of China. Such developments could adversely affect our business
and operating results, reduce production and weaken our competitive position. The Chinese government has implemented various measures
to encourage economic growth and guide the allocation of resources. Some of these measures may benefit the overall Chinese economy, but
may have a negative effect on us. For example, our financial condition and results of operations may be adversely affected by government
control over capital investments or changes in tax regulations. In addition, in the past the Chinese government has implemented certain
measures, including interest rate adjustments, to control the pace of economic growth. These measures may cause decreased economic activities
in China, which may adversely affect our business and operating results.

Uncertainties in the interpretation and enforcement of PRC laws and regulations and changes in policies, rules, and regulations in China, which may be quick with little advance notice, could limit the legal protection available to you and us.

Our PRC subsidiaries
are subject to various PRC laws and regulations generally applicable to companies in China. Since these laws and regulations are relatively
new and the PRC legal system continues to rapidly evolve, however, the interpretations of many laws, regulations, and rules are not always
uniform and enforcement of these laws, regulations, and rules involve uncertainties.

From time to time, we
may have to resort to administrative and court proceedings to enforce our legal rights. Since PRC administrative and court authorities
have significant discretion in interpreting and implementing statutory and contractual terms, however, it may be more difficult to evaluate
the outcome of administrative and court proceedings and the level of legal protection we enjoy in the PRC legal system than in more developed
legal systems. Furthermore, the PRC legal system is based in part on government policies, internal rules, and regulations that may have
retroactive effects and may change quickly with little advance notice. As a result, we may not be aware of our violation of these policies
and rules until sometime after the violation. Such uncertainties, including uncertainties over the scope and effect of our contractual,
property (including intellectual property), and procedural rights, and any failure to respond to changes in the regulatory environment
in China could materially and adversely affect our business and impede our ability to continue our operations.

PRC regulation of parent/subsidiary loans and direct investment by offshore holding companies to PRC entities may delay or prevent us