Company: NCL
Filing Date: 2025-01-29
Form Type: S-1/A
Source: 0001575872-25-000097
Chunk: 39

Company: Northann Corp.
Filing Date: 2025-01-29
Form: S-1/A
Chunk 39
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departments of the PRC State Council. While detailed interpretation of or implementing rules under Article 177 have yet to be promulgated,
the inability of an overseas securities regulator to directly conduct an investigation or evidence collection activities within China
may further increase the difficulties faced by you in protecting your interests. See “Enforceability of Civil Liabilities.”

The PRC government exerts substantial influence over the manner in which our PRC subsidiaries conduct their business activities. The PRC government may also intervene or influence our operations at any time and may exert more control over foreign investment in China-based issuers, which could result in a material change in our PRC subsidiaries’ operations.

The Chinese government has exercised and continues
to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability
to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations,
land use rights, property and other matters. 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