Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 147

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 147
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. The Companies Act distinguishes between ordinary resident companies and exempted companies.
Any company, the objects of which are to conduct business mainly outside of the Cayman Islands, may apply to be registered as an exempted
company. The requirements for an exempted company are essentially the same as for an ordinary company except for certain exemptions and
privileges, including (a) an exempted company does not have to file an annual return of its shareholders with the Registrar of Companies,
(b) an exempted company is not required to open its register of members for inspection, (c) an exempted company does not have
to hold an annual general meeting, (d) an exempted company may register by way of continuation in another jurisdiction and be deregistered
in the Cayman Islands, (e) an exempted company may obtain an undertaking against the imposition of any future taxation (such undertakings
are usually given for 30 years in the first instance), (f) an exempted company may register as a limited duration company and (g) an
exempted company may register as a segregated portfolio company.

“Limited liability” means that the
liability of each shareholder is limited to the amount unpaid by the shareholder on that shareholder’s shares of the company (except
in exceptional circumstances, such as fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances
in which a court may be prepared to pierce or lift the corporate veil).

The objects of CAAS Cayman are unrestricted and
CAAS Cayman has the full power and authority to carry out any object not prohibited by the law of the Cayman Islands.

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COMPARISON OF RIGHTS UNDER DELAWARE AND CAYMAN ISLANDS LAWS</div>

Your rights as a stockholder of the Company are
governed by the DGCL and the Company’s certificate of incorporation and bylaws. After the Redomicile Merger, you will become a shareholder
of CAAS Cayman and your rights will be governed by the Companies Act and the Amended CAAS Cayman Articles.

The principal attributes of the Company’s
common stock and CAAS Cayman ordinary shares are similar. However, there are differences between your rights under the DGCL and under
the Companies Act. In addition, there are differences between the Company’s certificate of incorporation and bylaws and the Amended
CAAS Cayman Articles. The following discussion is a summary of certain material differences in your