Company: NCL
Filing Date: 2025-11-14
Form Type: 424B3
Source: 0001575872-25-000688
Chunk: 4

Company: Northann Corp.
Filing Date: 2025-11-14
Form: 424B3
Chunk 4
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 it shall be deemed as a domestic enterprise conducting indirect offshore issuance and listing: (1) The proportion
of a domestic enterprise’s operating income, total profit, total assets or net assets for the most recent accounting year, to the
relevant data in the issuer’s audited consolidated financial statements for the same period, is more than 50%; (2) The issuer’s
main business activities are conducted within China or its main premises are located in China, or the majority of its senior management
personnel are Chinese citizens or reside in China on a regular basis. As further advised by our PRC counsel, Grandall Law Firm, the Company does not meet both the requirements under Article 15 of the Trial Measures and therefore the Company’s
offering under this prospectus is not an “Indirect overseas offering and listing of domestic enterprises”, considering that
(i) the operating income and total profit of the Company’s subsidiaries that were established in China for the year ended December
31, 2022 do not account for more than 50% of the operating income and total profit in our consolidated financial statements for the same
period, (ii) our main business is not conducted within China, and (iii) the majority of our senior management personnel are not Chinese
citizens or reside in China on a regular basis. Therefore, as concluded by our PRC counsel, Grandall Law Firm, we are not required to complete the record filing requirement under the Trial Measures. If we inadvertently conclude
that such filing procedures are not required, or applicable laws, regulations, or interpretations change such that we are required to
complete the filing procedures in the future, we may be subject to investigations by the regulators, fines or penalties, ordered to suspend
our relevant operations and rectify any non-compliance, prohibited from engaging in relevant business or conducting any offering, and
these risks could result in a material adverse change in our operations and/or the value of our common stock, and could significantly
limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly
decline in value or become worthless. See “Risk Factors – Risks Related to Doing Business in China”.

In addition, since 2021, the Chinese government
has strengthened its anti-monopoly supervision, mainly in three aspects: (1) establishing the National Anti-Monopoly Bureau; (2) revising
and promulgating anti-monopoly laws and regulations, including: the Anti-Monopoly Law (draft Amendment published