Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 67

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 67
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 regulations may restrict the
ability of our PRC subsidiaries to pay dividends to us. Under the current regulatory regime in China, a PRC company may pay dividends
only out of their accumulated profit, if any, determined in accordance with PRC accounting standards and regulations, and is required
to set aside as general reserves at least 10% of its after-tax profit, until the cumulative amount of such reserves reaches 50% of its
registered capital, prior to any dividend distribution. In addition, a PRC company shall not distribute any profits in a given year until
any losses from prior fiscal years have been offset.

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BUSINESS</div>

CAAS Cayman is an exempted company incorporated
under the laws of the Cayman Islands on August 29, 2024, and a wholly-owned subsidiary of the Company. CAAS Cayman does not have
any operations or assets other than those in connection with the Redomicile Merger. Accordingly, a separate discussion of its business,
financial positions and such other relevant matters is not included in this proxy statement/prospectus.

The description of the business of the Company
set forth under “Part I — Item I. Business” included in our 2024 Annual Report is incorporated by reference into
this proxy statement/prospectus.

The Holding Foreign Companies Accountable Act

Pursuant to the Holding Foreign Companies Accountable
Act, if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to
inspections by the PCAOB for two consecutive years, the SEC will prohibit our shares from being traded on a national securities exchange
or in the over-the-counter trading market in the United States. On December 16, 2021, the PCAOB issued a report to notify the SEC
of its determination that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in
mainland China and Hong Kong, including our auditor. In May 2022, the SEC conclusively listed the Company as a Commission-Identified
Issuer under the HFCAA following the filing of the annual report on Form 10-K for the fiscal year ended December 31, 2021. On
December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021 determination and removed mainland China and
Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms. For