Company: NCL
Filing Date: 2025-10-24
Form Type: S-1/A
Source: 0001575872-25-000638
Chunk: 9

Company: Northann Corp.
Filing Date: 2025-10-24
Form: S-1/A
Chunk 9
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 among the subsidiaries for working capital purposes and during the ordinary
course of business.

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.

For the fiscal year ended December 31, 2024, (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$ 2,328,332.05 to the Company.

From January 1, 2025 to the date of this prospectus, no funds and assets
were transferred between the Company and the subsidiaries and among the subsidiaries.

Cash flows of the Company can be found individually on page F-27 under
Note 21 - Unrestricted Net Assets of the consolidated financial statements for the years ended December 31, 2024 and 2023 which are incorporated
by reference in this registration statement. The transfers of funds between the Company and the subsidiaries and among subsidiaries are
subject to the Provisions of the Supreme People’s Court on Several Issues Concerning the Application of Law in the Trial of Private
Lending Cases (2020 Revision, the “Provisions on Private Lending Cases”), which was implemented on August 20, 2020 to regulate
the financing activities between natural persons, legal persons and unincorporated organizations. As advised by our PRC counsel, Grandall Law Firm, the Provisions on Private Lending Cases does not prohibit using cash generated from the Company or one subsidiary to
fund another subsidiary’s operations. We have not been notified of any other restriction which could limit our PRC subsidiaries’
ability to