Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 56

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 56
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37.5 percent beginning in 2026) to offset the income tax liability, subject to some limitations.

Information technology dependency and cyber security vulnerabilities could lead to reduced revenue, liability claims, or competitive harm.

The Company is dependent on information technology
systems and infrastructure, or “IT systems”, to conduct its business. The Company’s IT systems may be vulnerable to
disruptions from human error, outdated applications, computer viruses, natural disasters, unauthorized access, cyber-attack and other
similar disruptions. Any significant disruption, breakdown, intrusion, interruption or corruption of these systems or data breaches could
cause the loss of data or intellectual property, equipment damage, downtime, and/or safety related issues and could have a material adverse
effect on the Company’s business. The Company has, from time to time, experienced incidents related to its IT systems, and expect
that such incidents will continue, including malware and computer virus outbreaks, unauthorized access, systems failures and disruptions.
The Company has measures and defenses in place against such events, but the Company may not be able to prevent, immediately detect, or
remediate all instances of such events. A material security breach or disruption of the Company’s IT systems could result in theft,
unauthorized use, or publication of the Company’s intellectual property and/or confidential business information, harm the Company’s
competitive position, disrupt the Company’s manufacturing, reduce the value of the Company’s investment in research and development
and other strategic initiatives, impair the Company’s ability to access vendors and suppliers or otherwise adversely affect the
Company’s business.

Additionally, the Company believes that utilities
and other operators of critical infrastructure that serve the Company’s facilities face heightened security risks, including cyber-attack.
In the event of such an attack, disruption in service from the Company’s utility providers could disrupt the Company’s manufacturing
operations which rely on a continuous source of power, electrical, gas, etc.

The Company’s business is subject to natural disasters, health epidemics and other catastrophic incidents.

China has in the past experienced significant
natural disasters, including earthquakes, extreme weather conditions, as well as health scares related to epidemic diseases, and any
similar event could materially impact the Company’s business in the future. If a disaster or other disruption were to occur in
the future that affects the regions where the Company operates its business, the Company’s operations could be materially and adversely
affected due to loss of personnel and damage to property. Even if the Company is not directly affected, such a disaster or disruption
could affect the