Company Overview

Name: Northann Corp.

Type of Business:

• The company operates in manufacturing and trading, primarily involved in the production and sales of flooring products, including vinyl flooring and three-dimensional printed flooring.

Key Operations and Subsidiaries:

• The company oversees manufacturing, distribution, and trading entities across China, Hong Kong, and the United States.
• Major subsidiaries include Northann Building Solutions LLC, Northann (Changzhou) Construction Products Ltd, Benchwich Construction Products Ltd, Changzhou Macro Merit International Trading Co., Ltd., Northann Distribution Center Inc., and others involved in R&D, import/export, and online retail.

Financial Highlights (as of December 31, 2024)

• Revenue: Approximately $15.35 million in 2024, up from about $14.0 million in 2023.
• Net Loss: $(4,379,875) in 2024, a decrease from $(7,132,573) in 2023.
• Gross Profit: $3,979,826 in 2024, significantly higher than $1,214,364 in 2023.
• Total Assets: $13,875,685 in 2024, slightly increased from $13,618,710 in 2023.
• Shareholders’ Equity: $2,599,173 as of December 31, 2024, an increase from $582,612 in 2023.

Customer and Revenue Concentration

• In 2024, nearly 72% of revenue was generated from two major customers.
• As of December 31, 2024, five customers accounted for 94% of the accounts receivable.
• In 2023, two customers accounted for 91% of revenue.
• A small number of suppliers dominate the cost of revenues, with the top three suppliers accounting for 48% of the cost in 2024.

Employees and Operations

• Specific employee counts are not provided.
• The company operates manufacturing facilities, distribution centers, and maintains online retail outlets.
• It has a factory construction project underway, with a significant capital commitment of approximately $4.3 million for a second phase of its factory as of December 31, 2024.

Business Activities

• Product Types:
  • Hardwood floors
  • Vinyl flooring (dotfloor.com, online store in the US)
  • Three-dimensional printed flooring
• Revenue Recognition: Typically upon delivery, passing control and legal title to customers.
• The company engages in importing/exporting products, manufacturing, and distribution, with a focus on flooring solutions.

Strategic Initiatives and Acquisitions

• In October 2024, acquired Cedar Modern Limited for approximately $753,379 (consideration: 4,484,400 shares).
• In November 2024, acquired Raleigh Industries Limited for approximately $1,777,500 (consideration: 4,500,000 shares).
• These acquisitions aim to expand sales and distribution channels.

Corporate Structure and Capital

• The company’s stock structure includes:
  • 95,464,400 shares of common stock outstanding as of June 30, 2025.
  • 5 million Series A Preferred Stock shares outstanding as of June 30, 2025.
• Implemented a 2-for-1 reverse stock split in July 2023.

Notable Financial Controls and Risks

• The company has a working capital deficit (approximately $3.75 million in 2024).
• It continues to face substantial doubt about its ability to remain a going concern, though operational improvements have shown increased gross profit margins.
• The company operates under various lease agreements, has secured borrowing facilities, and maintains significant related-party balances, including a prominent related-party debt of over $1.4 million as of December 31, 2024.

In summary, Northann Corp. produces and sells flooring products, with a strong focus on vinyl and 3D printed flooring, supported by manufacturing and trading subsidiaries. The company has increased revenues but remains unprofitable, with high customer concentration risk and ongoing capital commitments for factory expansion.