Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 49

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 49
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um,
tungsten and gold, commonly referred to as “3TG.” If these materials are necessary to the functionality or production of
a product manufactured, or contracted to be manufactured, the rules require a reasonable country of origin inquiry be conducted
to determine if an issuer knows, or has reason to believe, that any of the minerals used in the production process may have originated
from the Democratic Republic of the Congo or an adjoining country. In such a case, if an issuer were not able to determine that the minerals
did not originate from a covered country or conclude that there is no reason to believe that the minerals used in the production process
may have originated in a covered country, that issuer could be required to perform supply chain due diligence on members of its supply
chain. Global supply chains can have multiple layers, thus the costs of complying with these new requirements could be substantial. These
new requirements may also reduce the number of suppliers that provide conflict-free metals and may also affect a company’s ability
to obtain products in sufficient quantities or at competitive prices. If the Company was to source such 3TG minerals that are necessary
to the functionality or production of a product manufactured, or contracted to be manufactured, compliance costs with these rules and/or
the unavailability of raw materials could have a material adverse effect on the Company’s results of operations.

The Company faces risks associated with currency exchange rate fluctuations; any adverse fluctuation may adversely affect its operating margins.

The majority of the Company’s current revenues
are received in Chinese currency. Conducting business in currencies other than U.S. dollars subjects the Company to fluctuations in currency
exchange rates that could have a negative impact on its reported operating results. Fluctuations in the value of the U.S. dollar relative
to other currencies impact the Company’s revenues, cost of revenues and operating margins and result in foreign currency translation
gains and losses. Historically, the Company has not engaged in exchange rate hedging activities. Although the Company may implement hedging
strategies to mitigate this risk, these strategies may not eliminate its exposure to foreign exchange rate fluctuations and involve costs
and risks of their own, such as ongoing management time and expertise requirements, external costs to implement the strategy and potential
accounting implications.

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If relations between the United States and China worsen, the Company’s stock price may decrease and the Company may have difficulty accessing the U.S. capital markets.

At various times during recent years, the
United States and