Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 35

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 35
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 amendment to the memorandum and articles of association of CAAS Cayman. As a result of this Cayman
Islands law requirement, situations may arise where the flexibility we now have under Delaware law would have provided benefits to our
stockholders that will not be available in the Cayman Islands.

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In addition, under Cayman Islands law, certain
corporate transactions, such as a merger, require the approval of a special resolution of not less than two-thirds of the votes cast at
a general meeting by those shareholders entitled to vote who are present in person or by proxy. By contrast, a merger under Delaware law
would only require a simple majority of the outstanding stock of the company entitled to vote thereon. The increased shareholder approval
requirements may limit our flexibility to enter into or complete certain business combinations that may be beneficial to shareholders.

For a detailed discussion of the differences in
shareholder voting requirements in the Cayman Islands relative to Delaware, please see the section entitled “Comparison of Rights
under Delaware and Cayman Islands Laws.”

The expected benefits of the Redomicile Merger may not be realized.

We have presented in this proxy statement/prospectus
the anticipated benefits of the Redomicile Merger. Please see the section entitled “Proposal One — The Merger
Proposal — Background and Reasons for the Redomicile Merger.” We cannot be assured that all of the goals of the Redomicile
Merger will be achievable, and some or all of the anticipated benefits of the Redomicile Merger may not occur, particularly as the achievement
of the benefits are in many important respects subject to factors that we do not control.

These factors would include such things as the
reactions of third parties with whom we enter into contracts and do business and the reactions of investors and analysts. In addition,
the anticipated reduction of SEC reporting requirements and related expenses may not be achieved in the event of changes to the SEC rules applicable
to foreign private issuers or if we fail to qualify as a foreign private issuer. While we expect the Redomicile Merger will enable us
to reduce our operational, administrative, legal and accounting costs over the long term, these benefits may not be achieved.

CAAS Cayman will continue to be treated as a U.S. corporation for U.S. federal income tax purposes.

After the Redomicile Merger, CAAS Cayman, as successor
to the Company, will continue to be treated as a U.S. corporation for U