Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 43

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 43
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The Company is subject to environmental and safety regulations, which may increase the Company’s compliance costs and may adversely affect its results of operations.

The Company is subject to the requirements of environmental
and occupational safety and health laws and regulations in China. The Company cannot provide assurance that it has been or will be at
all times in full compliance with all of these requirements, or that it will not incur material costs or liabilities in connection with
these requirements. Additionally, these regulations may change in a manner that could have a material adverse effect on the Company’s
business, results of operations and financial condition. The capital requirements and other expenditures that may be necessary to comply
with environmental requirements could increase and become a material expense of doing business.

Non-performance by the Company’s suppliers may adversely affect its operations by delaying delivery or causing delivery failures, which may negatively affect demand, sales and profitability.

The Company purchases various types of equipment,
raw materials and 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