Company: NCL
Filing Date: 2025-01-29
Form Type: S-1/A
Source: 0001575872-25-000097
Chunk: 42

Company: Northann Corp.
Filing Date: 2025-01-29
Form: S-1/A
Chunk 42
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 conducted overseas and/or foreign investment in China-based issuers could significantly limit or complete hinder
our ability to offer or continue to offer our securities and cause the value of such securities to significantly decline or be worthless.

Recent greater oversight by the Cyberspace Administration of China (the “CAC”) over data security, could adversely impact our business.

On December 28, 2021,
the CAC, together with 12 other governmental departments of the PRC, jointly promulgated the Cybersecurity Review Measures, which took
effect on February 15, 2022. The Cybersecurity Review Measures provide that, in addition to critical information infrastructure operators
(“CIIOs”) that intend to purchase Internet products and services, data processing operators engaging in data processing activities
that affect or may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According
to the Cybersecurity Review Measures, a cybersecurity review assesses potential national security risks that may be brought about by any
procurement, data processing, or overseas listing. The Cybersecurity Review Measures further require that CIIOs and data processing operators
that possess personal data 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