Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 38

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 38
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 more difficult (or impossible) to bring some types of claims against CAAS Cayman in Cayman Islands courts
than it would be to bring similar claims against a U.S. company in a U.S. court.

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The market for CAAS Cayman shares may differ from the market for the Company’s common stock.

Although it is expected that the CAAS Cayman ordinary
shares will be authorized for listing on Nasdaq under the symbol “CAAS,” as a company incorporated under the laws of the
Cayman Islands, shares of CAAS Cayman may appeal to different institutional investors, or impact the level of investment by current investors
who may prefer or be required by internal guidelines to invest in companies that are incorporated in the United States. Accordingly,
the redomicile may impact our institutional investor base, or the level of their respective investments in our securities, and may result
in a change in the market prices, trading volume and volatility of the CAAS Cayman ordinary shares from those of the Company’s
common stock.

We expect to incur transaction costs and adverse financial consequences in the year of completion of the Redomicile Merger.

We expect to incur significant transaction costs
in connection with the Redomicile Merger, which have been and will continue to be expensed as incurred. The substantial majority of these
costs will be incurred regardless of whether the Redomicile Merger is completed and prior to your vote on the proposal. We expect to
incur costs and expenses, including professional fees, to comply with the Cayman Islands corporate and other laws. In addition, we expect
to incur attorneys’ fees, accountants’ fees, filing fees, mailing expenses, solicitation fees and financial printing expenses
in connection with the Redomicile Merger, even if the Redomicile Merger is not approved or completed. The Redomicile Merger also may
negatively affect us by diverting attention of our management and employees from our operating business during the period of implementation
and by increasing other administrative costs and expenses.

Our Board of Directors may choose to defer or abandon the Redomicile Merger.

Completion of the Redomicile Merger may be deferred
or abandoned, at any time, by action of our Board of Directors. While we currently expect the Redomicile Merger to take place promptly
after the proposal to adopt the Merger Agreement is approved, our Board of Directors may defer completion or may abandon the Redomicile
Mer