Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 40

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 40
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 subsidiaries.

The Company almost has no operations independent
of those of Genesis and its subsidiaries, and the Company’s principal assets are its investments in Genesis and its subsidiaries
and affiliates. As a result, the Company is dependent upon the performance of Genesis and its subsidiaries and will be subject to the
financial, business and other factors affecting Genesis as well as general economic and financial conditions. As substantially all of
the Company’s operations are, and will be, conducted through its subsidiaries, the Company will be dependent on the cash flow of
its subsidiaries to meet its obligations.

Because virtually all of the Company’s assets
are, and will be, held by operating subsidiaries, the claims of the Company’s stockholders will be structurally subordinate to
all existing and future liabilities, obligations and trade payables of such subsidiaries. In the event of the Company’s bankruptcy,
liquidation or reorganization, its assets and those of its subsidiaries will be available to satisfy the claims of the Company’s
stockholders only after all of its and its subsidiaries’ liabilities and obligations have been paid in full.

With the automobile parts markets being highly competitive and many of the Company’s competitors having greater resources than it does, the Company may not be able to compete successfully.

The automobile parts industry is a highly competitive
business. The Company’s customers consider criteria including:

| · | quality;                                       |
| · | price/cost                                     
 competitiveness;                               |
| · | system                                         
 and product performance;                       |
| · | reliability                                    
 and timeliness of delivery;                    |
| · | new                                            
 product and technology development capability; |
| · | excellence                                     
 and flexibility in operations;                 |
| · | degree                                         
 of global and local presence;                  |
| · | effectiveness                                  
 of customer service; and                       |
| · | overall                                        
 management capability.                         |

The Company’s competitors include independent
suppliers of parts, as well as suppliers formed by spin-offs from the Company’s customers, who are becoming more aggressive in
selling parts to other vehicle manufacturers. Depending on the particular product, the number of the Company’s competitors varies
significantly. Many of the Company’s competitors have substantially greater revenues and financial resources than the Company does,
as well as stronger brand names, consumer recognition, business relationships with vehicle manufacturers, and geographic presence than
the Company has. The Company may not be able to compete favorably and increased competition may substantially harm its business, business
prospects and results of operations.

Internationally, the Company faces different