Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 74

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 74
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 and discretion over the conduct of our business
and may influence our operations at any time, which could result in a material change in our operations and/or the value of our securities.”
and “Risk Factors and Caution Regarding Forward-Looking Statements — Risks Related to Doing Business in China and Other Countries
besides The United States — The approval of, or filing or other procedures with, the CSRC or other Chinese regulatory authorities
may be required in connection with issuing our equity securities to foreign investors under Chinese law, and, if required, we cannot
predict whether we will be able, or how long it will take us, to obtain such approval or complete such filing or other procedures. We
are also required to obtain business licenses from Chinese authorities in connection with our general business activities currently conducted
in China.”

Cash Flows through Our Organization

The Company is a holding company with no operations
of its own. We conduct our operations in China primarily through our subsidiaries, particularly Genesis, which owns interests in eight
Sino-joint ventures and seven wholly-owned subsidiaries in the PRC. As a result, although other means are available for us to obtain
financing at the holding company level, the Company’s ability to pay dividends to the shareholders and to service any debt it may
incur may depend upon dividends paid by our PRC subsidiaries. If any of our subsidiaries incurs debt on its own behalf, the instruments
governing such debt may restrict its ability to pay dividends to the Company. In addition, our PRC subsidiaries are permitted to pay
dividends to CAAS only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations.
Further, our PRC subsidiaries are required to make appropriations to certain statutory reserve funds, which are not distributable as
cash dividends except in the event of a solvent liquidation of the companies.

We may rely on dividends and other distributions
on equity paid by our PRC subsidiaries for our cash and financing requirements, including the funds necessary to pay dividends and other
cash distributions to our shareholders or to service any debt we may incur. If any of our PRC subsidiaries incurs debt on its own behalf
in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us. Under
PRC laws and regulations, our PRC subsidiaries may pay dividends only out of their respective accumulated profits as determined in accordance
with PRC accounting standards and regulations. In addition, a wholly foreign