Company: NCL
Filing Date: 2025-09-26
Form Type: S-1
Source: 0001575872-25-000602
Chunk: 41

Company: Northann Corp.
Filing Date: 2025-09-26
Form: S-1
Chunk 41
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 The central or local governments of these jurisdictions may impose new, stricter regulations
or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance
with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support
recent economic reforms and to return to a more centrally planned economy or regional or local variations in the implementation of economic
policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest
ourselves of any interest we then hold in our operations in China.

For example, the Chinese cybersecurity regulator
announced on July 2, 2021, that it began investigating Didi Global Inc. (NYSE: DIDI) and two days later ordered that the company’s
smartphone application be removed from smartphone application stores. Similarly, our business segments may be subject to various government
and regulatory interference in the regions in which we operate. We could be subject to regulation by various political and regulatory
entities, including various local and municipal agencies and government sub-divisions. We may incur increased costs necessary to comply
with existing and newly adopted laws and regulations or penalties for any failure to comply.

Although we believe that we are in compliance with
existing and newly adopted laws and regulations of the PRC, we cannot assure you that PRC regulatory agencies would take the same view
as we do, and there is no assurance that we can fully or timely comply with such laws. In the event that we are subject to any mandatory
review and other specific actions required by any Chinese regulator, we face uncertainty as to whether any clearance or other required
actions can be timely completed, or at all. Given such uncertainty, we may be further required to suspend our relevant business, shut
down our website, or face other penalties, which could materially and adversely affect our business, financial condition, and results
of operations. Any future action by the PRC government could significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and could cause the value of such securities to significantly decline or be worthless.

| 17 |

If the Chinese government chooses to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers, such action could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless.

We face risks arising from China including risks and
uncertainties