Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 35

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 35
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man Islands Laws.”

The expected benefits of the Redomicile Merger may not be realized.

We have presented in this proxy statement/prospectus
the anticipated benefits of the Redomicile Merger. Please see the section entitled “Proposal One — The Merger
Proposal — Background and Reasons for the Redomicile Merger.” We cannot be assured that all of the goals of the Redomicile
Merger will be achievable, and some or all of the anticipated benefits of the Redomicile Merger may not occur, particularly as the achievement
of the benefits are in many important respects subject to factors that we do not control.

These factors would include such things as the
reactions of third parties with whom we enter into contracts and do business and the reactions of investors and analysts. In addition,
the anticipated reduction of SEC reporting requirements and related expenses may not be achieved in the event of changes to the SEC rules applicable
to foreign private issuers or if we fail to qualify as a foreign private issuer. While we expect the Redomicile Merger will enable us
to reduce our operational, administrative, legal and accounting costs over the long term, these benefits may not be achieved.

CAAS Cayman will continue to be treated as a U.S. corporation for U.S. federal income tax purposes.

After the Redomicile Merger, CAAS Cayman, as successor
to the Company, will continue to be treated as a U.S. corporation for U.S. federal income tax purposes. Accordingly, CAAS Cayman will
continue to be subject to U.S. federal income taxes as if it were incorporated in Delaware, and dividends paid by CAAS Cayman to non-U.S.
stockholders will generally be subject to withholding tax at a 30% rate (or a reduced rate specified by an applicable income tax treaty).
While the Redomicile Merger is not anticipated to have any material impact on our effective tax rate, changes in U.S. tax laws could
adversely affect our results of operations and profitability.

As a foreign private issuer, CAAS Cayman will not be required to provide its shareholders with the same information as the Company would if the Company remained a U.S. public issuer and, as a result, you may not receive as much information about CAAS Cayman as you did about the Company and you may not be afforded the same level of protection as a beneficial owner of CAAS Cayman under applicable laws and the CAAS Cayman’s amended and restated memorandum and articles of