Company: NCL
Filing Date: 2025-01-14
Form Type: S-1/A
Source: 0001575872-25-000059
Chunk: 33

Company: Northann Corp.
Filing Date: 2025-01-14
Form: S-1/A
Chunk 33
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 could have a material adverse effect on our business and operations.

Most of our products
are manufactured through NCP in China and as a result, our business, financial condition, results of operations, and prospects may be
influenced to a significant degree by political, economic and social conditions in China generally. The Chinese government plays a significant
role in regulating industry development by imposing industrial policies. The Chinese government also exercises significant control over
China’s economic growth by allocating resources, controlling payment of foreign currency-denominated obligations, setting monetary
policy, and providing preferential treatment to particular industries or companies.

While the Chinese economy
has experienced significant growth over the past decades, growth has been uneven, both geographically and among various sectors of the
economy. Any adverse changes of economic 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