Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 105

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 105
---
 resigns his office by notice in writing to CAAS Cayman, is removed from office by ordinary resolution or is otherwise disqualified
from acting as a director or removed in accordance with the Amended CAAS Cayman Articles.

Code of Business Conduct and Ethics

CAAS Cayman has adopted a Code of Business Conduct
and Ethics applicable to its directors, officers and employees. CAAS Cayman seeks to conduct business ethically, honestly, and in compliance
with applicable laws and regulations. CAAS Cayman’s Code of Business Conduct and Ethics sets out the principles designed to guide
CAAS Cayman’s business practices — compliance, integrity, respect and dedication. The code applies to all directors,
officers, employees and extended workforce, including chairperson and chief executive officer and chief financial officer. Relevant sections
of the code also apply to members of the CAAS Cayman board of directors. CAAS Cayman expects its suppliers, contractors, consultants,
and other business partners to follow the principles set forth in its code when providing goods and services to CAAS Cayman or acting
on CAAS Cayman’s behalf.

Compensation of Directors and Officers

No compensation has been paid to director and
officer appointees of CAAS Cayman for their services rendered to CAAS Cayman.

For the year ended December 31, 2024, the
Company paid an aggregate of US$1.8 million in cash and benefits to director and officer appointees of CAAS Cayman. The Company’s
mainland China subsidiaries are required by law to make contributions equal to certain percentages of each employee’s salary for
his or her pension insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance and other
statutory benefits, and a housing provident fund.

Share Incentive Plan

The Company has a 2004 stock option plan (the
“2004 Stock Option Plan”). At the 2014 annual meeting of stockholders, the stockholders of the Company approved an amendment
to the 2004 Stock Option Plan that extended its term for an additional ten (10) years. Pursuant to such amendment, the 2004 Stock
Option Plan will expire on June 27, 2025. Under the 2004 Stock Option Plan, 2,200,000 shares of common stock were authorized for
issuance to selected employees, consultants, directors and advisors of the Company. As of the date hereof, there were a total of 1,541,150