Company: NCL
Filing Date: 2025-01-29
Form Type: S-1/A
Source: 0001575872-25-000097
Chunk: 9

Company: Northann Corp.
Filing Date: 2025-01-29
Form: S-1/A
Chunk 9
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 present plans to declare dividends and plans to retain our
earnings to continue to grow its business. See “Risk Factors—Risks Related to Our Corporate Structure—Northann Corp.
is a holding company and will rely on dividends paid by its subsidiaries for its cash needs. Any limitation on the ability of its subsidiaries
to make dividend payments to the Company, or any tax implications of making dividend payments to the Company, could limit the Company’s
ability to pay its expenses or pay dividends to holders of its common stock.”

As of the date of this prospectus, funds and
assets were transferred between the Company and the subsidiaries and among the subsidiaries for working capital purposes and during
the ordinary course of business.

For the fiscal year ended December 31, 2022, (i)
Northann (Changzhou) Construction Products Co., Ltd. (“NCP”) transferred cash in the amount of US$866,238 to Changzhou Marco
Merit International Trading Co., Ltd. (“Marco”), (ii) NCP transferred cash in the amount of US$2,849,916 to Crazy Industry
(Changzhou) Industry Technology Co., Ltd. (“Crazy Industry”), and (iii) Crazy Industry transferred cash in the amount of US$2,682,423
to NCP.

For the fiscal year ended December 31, 2023, (i)
NCP transferred cash in the amount of US$210,089 to Marco, (ii) NCP transferred cash in the amount of US$3,552,318 to Crazy Industry,
(iii) Crazy Industry transferred cash in the amount of US$3,696,330 to NCP, (iv) the Company transferred cash in the amount of US$ 2,740,000
to Northann Distribution Center Inc. (“NDC”), and (v) NDC transferred cash in the amount of US$ 269,700 to the Company.

From January 1, 2024 to the date of this prospectus,
(i) NCP transferred cash in the amount of US$55,655 to Marco, (ii) Crazy Industry transferred cash in the amount of US$749,922 to NCP,
(iii) Changzhou Ringold International Trading Co., Ltd. transferred cash in the amount of US$756,343 to Crazy Industry, (iv) the Company
transferred cash in the amount of US$ 150,600 to NDC, and (v) NDC transferred cash in the amount of US$