Company: NCL
Filing Date: 2025-09-26
Form Type: S-1
Source: 0001575872-25-000602
Chunk: 4

Company: Northann Corp.
Filing Date: 2025-09-26
Form: S-1
Chunk 4
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 unique risks to investors.
See “Risk Factors – Risks Related to Our Corporate Structure”.

In addition, as most
of our products are manufactured through our subsidiary, Northann (Changzhou) Construction Products Co., Ltd., in China, we are subject
to certain legal and operational risks associated with having operations in China. The Chinese government may exercise significant oversight
and discretion over the conduct of our PRC subsidiaries’ business and may intervene in or influence our operations at any time,
which could result in a material 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. As of the date of this prospectus, our PRC subsidiaries are not operating in an industry that prohibits or limits foreign
investment.

In addition, as advised by our PRC counsel, Grandall Law Firm, other
than those permissions or approvals required for a domestic company in China to engage in the businesses similar to ours, we are not subject
to cybersecurity review with the Cyberspace Administration of China, or the “CAC,” under the Cybersecurity Review Measures
that became effective on February 15, 2022, since we currently do not have over one million users’ personal information and do not
anticipate that we will be collecting over one million users’ personal information in the foreseeable future, which we understand
might otherwise subject us to the Cybersecurity Review Measures; we are also not subject to network data security review by the CAC if
the Draft Regulations on the Network Data Security Administration (Draft for Comments) (the “Security Administration Draft”)
are enacted as proposed, since we currently do not have over one million users’ personal information and do not collect data that
affects or may affect national security and we do not anticipate that we will be collecting over one million users’ personal information
or data that affects or may affect national security in the foreseeable future, which we understand might otherwise subject us to the
Security Administration Draft.

On February 17, 2023, the
China Securities Regulatory Commission, or the “CSRC,” released the Trial Administrative Measures of Overseas Securities Offering
and Listing by Domestic Companies, or the “Trial Measures”, and five supporting guidelines, which came into effect on March
31, 2023. Pursuant to the Trial Measures, domestic companies that seek to offer or list securities overseas, both directly and