Company: NCL
Filing Date: 2025-02-07
Form Type: 424B3
Source: 0001575872-25-000134
Chunk: 39

Company: Northann Corp.
Filing Date: 2025-02-07
Form: 424B3
Chunk 39
---
 future could significantly
affect economic conditions in China or particular regions thereof, and could require our subsidiaries in PRC and Hong Kong to materially
change their operating activities or divest ourselves of any interests we hold in Chinese assets. Our subsidiaries in PRC and Hong Kong
may be subject to various government and regulatory interference. We may incur increased costs necessary to comply with existing and newly
adopted laws and regulations or penalties for any failure to comply. Such subsidiaries’ operations could be adversely affected,
directly or indirectly, by changes to existing laws or implementation of future laws and regulations relating to their business or industry.

As of the date of this prospectus, we and our subsidiaries
in the Mainland China and Hong Kong (1) are not required to obtain permissions from any PRC authorities to operate or issue our common
stock to foreign investors, (2) are not subject to permission requirements from the CSRC, CAC or any other entity that is required to
approve their operations in the Mainland China and Hong Kong, and (3) have not received or were denied such permissions by any PRC authorities.
Nevertheless, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council
jointly issued the “Opinions on Severely Cracking Down on Illegal Securities Activities According to Law,” which were made
available to the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities,
and the need to strengthen the supervision over overseas listings by Chinese companies. The regulatory agencies like CSRC or CAC may impose
fines and penalties on our operations in the Mainland China or Hong Kong, limit our ability to pay dividends outside of the Mainland China
or Hong Kong, limit our operations in the Mainland China or Hong Kong, delay or restrict the repatriation of the proceeds from this offering
into the Mainland China or Hong Kong or take other actions that could have a material adverse effect on our business, financial condition,
results of operations and prospects, as well as the trading price of our securities. The CSRC, the CAC, or other PRC regulatory agencies
also may take actions requiring us, or making it advisable for us, to halt this offering before settlement and delivery of our common
stock. Consequently, if you engage in market trading or other activities in anticipation of and prior to settlement and delivery, you
do so at the risk that settlement and delivery may not occur. In addition