Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 50

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 50
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 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 China
have had disagreements over political and economic issues. Controversies may arise in the future between these two countries. Any political
or trade controversies between the United States and China could adversely affect the market price of the Company’s common stock
(and CAAS Cayman’s ordinary shares) and its ability to access U.S. capital markets. Political events, international trade disputes
and other business interruptions could harm or disrupt international commerce and the global economy, and could have a material adverse
effect on the Company, its customers and its other business partners.

The Chinese government could change its policies toward private enterprise, which could adversely affect the Company’s business.

The Company’s business is subject to political
and economic uncertainties in China and may be adversely affected by China’s political, economic and social developments. Over the
past several years, the Chinese government has pursued economic reform policies including the encouragement of private economic activity
and greater economic decentralization. The Chinese government may not continue to pursue these policies or may alter them to the Company’s
detriment from time to time. Changes in policies, laws and regulations, or in their interpretation or the imposition of confiscatory taxation,
restrictions on currency conversion, restrictions or prohibitions on dividend payments to stockholders, devaluations of currency or the
nationalization or other expropriation of private enterprises could have a material adverse effect on the Company’s business. Nationalization
or expropriation could result in the total loss of the Company’s investment in China.

Government control of currency conversion and future movements in exchange rates may adversely affect the Company’s operations and financial results.

The Company receives most of its revenues in
Chinese Renminbi, “RMB”. A portion of such revenues will be converted into