Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 29

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 29
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 capital requirements, plans for expansion, restrictions
imposed by any financing arrangements and any other factors that the Company’s board of directors deems relevant.

Recommendation to CAAS Shareholders

CAAS’ Board of Directors has determined that
each of the proposals outlined herein is advisable to and in the best interests of CAAS and its stockholders and recommended that CAAS
stockholders vote “FOR” the Merger Proposal and “FOR” the Adjournment Proposal, if presented.

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Foreign Private Issuer

Following completion of the Redomicile Merger,
CAAS Cayman is expected to qualify as a “foreign private issuer” within the meaning of the rules under the Exchange Act
and, as such, CAAS Cayman would be permitted to follow the corporate governance practices of its home country, the Cayman Islands, in
lieu of the corporate governance standards of Nasdaq applicable to U.S. domestic companies. For example, CAAS Cayman would not be required
to have a majority of the board consisting of independent directors nor have a compensation committee or a nominating committee consisting
entirely of independent directors. As a result, CAAS Cayman’s shareholders may not have the same protection afforded to shareholders
of U.S. domestic companies that are subject to Nasdaq corporate governance requirements. As a foreign private issuer, CAAS Cayman would
also be subject to reduced disclosure requirements and exempt from certain provisions of the U.S. securities rules and regulations
applicable to U.S. domestic issuers such as the rules regulating solicitation of proxies and certain insider reporting and short-swing
profit rules.

Summary Risk Factors

You should consider all the information contained
in this proxy statement/prospectus in deciding how to vote for the proposals presented in this proxy statement/prospectus. In particular,
you should consider the risk factors described under “Risk Factors and Caution Regarding Forward-Looking Statements” beginning
on page 18. Such risks include, but are not limited to:

Risks Related to the Redomicile Merger

| · | Your rights as a stockholder of the Company will change as a result of the                                                                   
 Redomicile Merger and you may not be afforded as many rights as a shareholder of CAAS Cayman under applicable laws and CAAS Cayman’s         
 amended and restated memorandum and articles of association as you were as a stockholder of the Company under applicable laws and the        
 Company’s certificate of incorporation and bylaws