Company: CAAS
Filing Date: 2025-09-11
Form Type: 6-K
Source: 0001410578-25-002100
Chunk: 7

Company: China Automotive Systems, Inc.
Filing Date: 2025-09-11
Form: 6-K
Chunk 7
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 capital by the amount of the shares so cancelled. |

Subject to the Companies Act
and confirmation by the Grand Court of the Cayman Islands on an application by CAAS Cayman for an order confirming such reduction, CAAS
Cayman may by special resolution reduce its share capital and any capital redemption reserve in any manner authorized by the Companies
Act.

Issuance of Additional
Shares

The Amended CAAS Cayman Articles
authorizes CAAS Cayman’s board of directors to issue additional ordinary shares from time to time as its board of directors shall
determine, to the extent of available authorized but unissued shares.

The Amended CAAS Cayman Articles
authorizes CAAS Cayman’s board of directors to establish from time to time one or more series of preferred shares and to determine,
with respect to any series of preferred shares, the terms and rights of that series, including:

| · | the designation of the series; |

| · | the number of shares of the series; |

| · | the dividend rights, dividend rates, conversion rights, voting rights; and |

| · | the rights and terms of redemption and liquidation preferences. |

CAAS Cayman’s board
of directors may issue preferred shares without action by its shareholders to the extent authorized but unissued. In addition, the issuance
of preferred shares may be used as an anti-takeover device without further action on the part of the shareholders. Issuance of these shares
may dilute the voting power of holders of ordinary shares.

Rights of Non-resident
or Foreign Shareholders.

There are no
limitations imposed by the Amended CAAS Cayman Articles on the rights of non-resident or foreign shareholders to hold or exercise voting
rights on the shares. In addition, there are no provisions in the Amended CAAS Cayman Articles governing the ownership threshold above
which shareholder ownership must be disclosed.

Exempted Company

CAAS Cayman is an exempted
company duly incorporated with limited liability under the Companies Act. The Companies Act distinguishes between ordinary resident companies
and exempted companies. Any company, the objects of which are to conduct business mainly outside of the Cayman Islands, may apply to be
registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except
for certain exemptions and privileges, including (a) an exempted company does not have to file an annual return of its shareholders
with the Registrar of Companies, (b