Company: NCL
Filing Date: 2025-01-14
Form Type: S-1/A
Source: 0001575872-25-000059
Chunk: 41

Company: Northann Corp.
Filing Date: 2025-01-14
Form: S-1/A
Chunk 41
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 of at least one million users must apply for a review by the Cybersecurity Review Office of the PRC before
conducting listings in foreign countries.

On November 14, 2021,
the CAC published the Security Administration Draft, which provides that data processing operators engaging in data processing activities
that affect or may affect national security must be subject to network data security review by the relevant Cyberspace Administration
of the PRC. According to the Security Administration Draft, data processing operators who possess personal data of at least one million
users or collect data that affects or may affect national security must be subject to network data security review by the relevant Cyberspace
Administration of the PRC. The deadline for public comments on the Security Administration Draft was December 13, 2021.

As of the date of this
prospectus, we have not received any notice from any authorities identifying our PRC subsidiaries as CIIOs or requiring us to go through
cybersecurity review or network data security review by the CAC. We believe that the operations of our PRC subsidiaries and our listing
will not be affected and that we will not be subject to cybersecurity review and network data security review by the CAC, given that:
(i) because our companies mainly manufacture and sell vinyl flooring products, our PRC subsidiaries are unlikely to be classified as CIIOs
by the PRC regulatory agencies; (ii) our PRC subsidiaries make all of their sales through distributors and do not collect or have access
to personal data of the end customers and as a result, we possess personal data of fewer than one million individual clients in our business
operations as of the date of this prospectus; and (iii) since our PRC subsidiaries are in the vinyl flooring manufacture and wholesale
industry, data processed in our business is unlikely to have a bearing on national security and therefore is unlikely to be classified
as core or important data by the authorities. There remains uncertainty, however, as to how the Cybersecurity Review Measures and the
Security Administration Draft will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt
new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures and the Security
Administration Draft. If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all
reasonable measures and actions to comply and to minimize the adverse effect of such laws on us. We cannot guarantee, however, that we
will