Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 45

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 45
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 could have a material adverse effect on the Company’s business, results of operations and the trading price of its shares.

The Company is subject to reporting obligations
under the U.S. securities laws. The Securities and Exchange Commission, the “SEC,” as required by Section 404 of the
Sarbanes-Oxley Act of 2002, has adopted rules requiring public companies to include a report of management in its annual report that
contains an assessment by management of the effectiveness of such company’s internal control over financial reporting.

If the Company fails to maintain the adequacy of
its internal controls in the future, it will not be able to ensure that it can conclude on an ongoing basis that it has effective internal
control over financial reporting in accordance with the Sarbanes-Oxley Act. Moreover, effective internal controls are necessary for the
Company to produce reliable financial reports and are important to help prevent fraud. Any failure to maintain effective internal control
over financial reporting could result in the loss of investor confidence in the reliability of the Company’s financial statements,
which in turn could harm its business and negatively impact the trading price of its common stock. Furthermore, the Company may need to
incur additional costs and use additional management and other resources in an effort to comply with Section 404 of the Sarbanes-Oxley
Act and other requirements going forward.

The Company generally does not pay cash dividends on its common stock.

Although the Company announced and paid a special
cash dividend of $0.18 per common stock to the Company’s shareholders of record as of the close of business on June 26, 2014
and a special cash dividend of $0.80 per common stock to the company’s shareholders of record as of the close of business on July 30,
2024, respectively, it does not anticipate paying any other cash dividends in the foreseeable future. The Company currently intends to
retain future earnings, if any, to finance operations and the expansion of its business. Any future determination to pay cash dividends
will be at the discretion of the Board of Directors of the Company, and after the Redomicile Merger, the board of directors of CAAS Cayman,
and will be based upon the Company’s financial condition, operating results, capital requirements, plans for expansion, restrictions
imposed by any financing arrangements and any other factors that the Company’s Board of Directors deems relevant.

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Techniques employed by short sellers may drive down the market price of the