Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 53

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 53
---
AC, has also opened a cybersecurity probe into several U.S.-listed tech companies focusing on anti-monopoly, financial
technology regulation and more recently, with the passage of the Data Security Law, how companies collect, store, process and transfer
data. If the Chinese government’s regulation expands, our operations may be negatively impacted in a significant way, although,
presently, there is no discernible immediate impact.

<div align='center'>31</div>

The PCAOB had historically been unable to inspect our auditor in relation to their audit work performed for our financial statements and the inability of the PCAOB to conduct inspections of our auditor in the future may deprived our investors with the benefits of such inspections.

Our auditor, the independent registered public
accounting firm that issues the audit report included elsewhere in this proxy statement/prospectus, as an auditor of companies that are
traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the United States pursuant to which
the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. The auditor is located in
mainland China, a jurisdiction where the PCAOB was historically unable to conduct inspections and investigations completely before 2022.
As a result, we and investors in our shares of common stock were deprived of the benefits of such PCAOB inspections. The inability of
the PCAOB to conduct inspections of auditors in China in the past has made it more difficult to evaluate the effectiveness of our independent
registered public accounting firm’s audit procedures or quality control procedures as compared to auditors outside of China that
are subject to the PCAOB inspections. On December 16, 2021, the PCAOB issued the HFCAA Determination Report, according to which
our auditor is subject to the determinations that the PCAOB is unable to inspect or investigate completely. On December 15, 2022,
the PCAOB issued a report that vacated its December 16, 2021 determination and removed mainland China and Hong Kong from the list
of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms. However, if the PCAOB determines
in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong,
and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed
with the Securities and Exchange Commission, we and investors in our shares would be deprived of the benefits of such PCAOB inspections
again