Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 18

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 18
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In connection with the Redomicile Merger, each
outstanding option of the Company will be assumed by CAAS Cayman and will become an option of ordinary share(s) of CAAS Cayman under
the same terms and conditions.

Overview of the Merger Agreement

The Company and CAAS Cayman are required to complete
the Redomicile Merger only if certain customary conditions are satisfied or waived, including, among others, the registration statement
on Form F-4, of which this proxy statement/prospectus is a part, being declared effective by the SEC, ordinary shares of CAAS Cayman
is approved to be listed on the Nasdaq and the Merger Agreement and Plan of Merger being approved by the Company’s stockholders.

Board of Directors and Management of the CAAS Cayman Following the Redomicile Merger

Following the Redomicile Merger, CAAS Cayman will
be managed by the directors and officers appointed pursuant to the Plan of Merger, who are the same directors and executive officers
that manage the Company today.

Accounting Treatment

The Redomicile Merger will be accounted for as
a legal reorganization with no change in ultimate ownership interest immediately before and after the transaction. Accordingly, all assets
and liabilities will be recorded at historical cost as an exchange between entities under common control.

Dissenters’ Rights

In connection with the Redomicile Merger, our
stockholders will not have dissenters’ rights under the DGCL. Please see the section entitled “Comparison of Rights under
Delaware and Cayman Islands Laws.”

Regulatory Approval

Other than the filing of the Plan of Merger with
the Registrar of Companies of Cayman Islands, the only governmental or regulatory approvals or actions that are required to complete
the Redomicile Merger are compliance with U.S. federal and state securities laws and Delaware corporate law (including the filing with
the Secretary of State of the State of Delaware of a certificate of merger). The Redomicile Merger and the issuance of ordinary shares
by CAAS Cayman in connection therewith may be subject to a post-transaction filing procedure with the CSRC, and we plan to proactively
communicate with the CSRC and complete such procedure if so required.

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Material U.S. Federal Income Tax Consequences

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