Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 34

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 34
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 or judicial precedents in some jurisdictions of the United States. In particular, the Cayman Islands has
a less developed body of securities laws relative to the United States. Therefore, CAAS Cayman’s shareholders may have more difficulty
in protecting their interests in the face of actions by CAAS Cayman’s management, directors or controlling shareholders than would
shareholders of a corporation incorporated in a jurisdiction in the United States. In addition, shareholders of Cayman Islands companies
may not have standing to initiate a shareholder derivative action before the federal courts of the United States. The Cayman Islands
courts are also unlikely to impose liability against CAAS Cayman, in original actions brought in the Cayman Islands, based on certain
civil liabilities provisions of U.S. securities laws.

As a result of different shareholder voting requirements in the Cayman Islands relative to Delaware, we will have less flexibility with respect to our ability to amend our constitutional documents and enter into certain business combinations than we now have.

Under Delaware law and our current bylaws and
certificate of incorporation, our bylaws and certificate of incorporation may be amended by the vote of a majority of shares of common
stock entitled to vote on the matter to approve the amendment present in person or by proxy at the shareholders’ meeting. Cayman
Islands law requires a special resolution of not less than two-thirds of the votes cast by those shareholders entitled to vote who are
present in person or by proxy at a general meeting for any 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 Cay