Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 43

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 43
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 manufactured component parts from its suppliers. The Company would be materially and adversely affected by the failure
of its suppliers to perform as expected. The Company could experience delivery delays or failures caused by production issues or delivery
of non-conforming products if its suppliers fail to perform, and it also faces these risks in the event any of its suppliers becomes
insolvent or bankrupt.

The Company’s business and growth may suffer if it fails to attract and retain key personnel.

The Company’s ability to operate its business
and implement its strategies effectively depends on the efforts of its executive officers and other key employees. The Company depends
on the continued contributions of its senior management and other key personnel. The Company’s future success also depends on its
ability to identify, attract and retain highly skilled technical staff, particularly engineers and other employees with mechanics and
electronics expertise, and managerial, finance and marketing personnel. The Company does not maintain a key person life insurance policy
on Mr. Hanlin Chen or Mr. Qizhou Wu. The loss of the services of any of the Company’s key employees or the failure to
attract or retain other qualified personnel could substantially harm the Company’s business.

The Company’s management controls approximately 64.76% of its outstanding common stock and may have conflicts of interest with the Company’s minority stockholders.

As of March 31, 2025, members of the Company’s
management beneficially own approximately 64.76% of the outstanding shares of the Company’s common stock. As a result, except for
the related party transactions that require approval of the audit committee of the Board of Directors of the Company, these majority
stockholders have control over decisions to enter into any corporate transaction, which could result in the approval of transactions
that might not maximize overall stockholders’ value. Additionally, these stockholders control the election of members of the Company’s
Board of Directors, have the ability to appoint new members to the Company’s management team and control the outcome of matters
submitted to a vote of the holders of the Company’s common stock (and after the redomicile merger, CAAS Cayman’s ordinary
shares). The interests of these majority stockholders may at times conflict with the interests of the Company’s other stockholders.
The Company regularly engages in transactions with entities controlled by one or more of its officers and directors, including those
controlled by Mr. Hanlin Chen, the chairman of the Board of Directors of the Company and its controlling stockholder.

There is a limited public float of