Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 41

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 41
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 market
dynamics and competition. The Company may not be as successful as its competitors in generating revenues in international markets due
to the lack of recognition of its products or other factors. Developing product recognition overseas is expensive and time-consuming
and the Company’s international expansion efforts may be more costly and less profitable than it expects. If the Company is not
successful in its target markets, its sales could decline, its margins could be negatively impacted and it could lose market share, any
of which could materially harm the Company’s business, results of operations and profitability.

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Pricing pressure by automobile manufacturers on their suppliers may adversely affect the Company’s business and results of operations.

Recently, pricing pressure from automobile manufacturers
has been prevalent in the automotive parts industry in China. Virtually all vehicle manufacturers seek price reductions each year.
Although the Company has tried to reduce costs and resist price reductions, these reductions have impacted the Company’s sales
and profit margins. If the Company cannot offset continued price reductions through improved operating efficiencies and reduced expenditures,
price reductions will have a material adverse effect on the Company’s results of operations.

The Company’s business, revenues and profitability would be materially and adversely affected if it loses any of its large customers.

For the year ended December 31, 2024, approximately
20.3%, 18.2%, 6.8%, 6.5% and 5.1% of the Company’s sales were to Stellantis N.V., BYD Auto Co., Ltd., Mahindra &
Mahindra Ltd., Chery Automobile Co., Ltd. and Hubei Hongrun, the Company’s five largest customers in 2024, respectively. In
total, these five customers accounted for 56.9% of total sales in 2024. For the year ended December 31, 2023, approximately 17.2%,
6.4%, 6.1%, 5.5% and 5.2% of the Company’s sales were to Stellantis N.V., BYD Auto Co., Ltd., Hubei Hongrun, Mahindra &
Mahindra Ltd and Chery Automobile Co., Ltd, the Company’s five largest customers in 2023, respectively. In total, these five customers
accounted for 40.4% of total sales in 2023. The loss of, or significant reduction in purchases by, one or more of these major customers
could adversely affect the Company