Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 123

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 123
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 the Exchange                                                                  
 Act with the SEC;                                                                                                                            |
| · | CAAS Cayman will not be subject to the requirement to comply with Regulation                                                                 
 FD, which imposes certain restrictions on the selected disclosure of material information;                                                   |
| · | CAAS Cayman will not be required to comply with the sections of the Exchange                                                                 
 Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act; and       |
| · | CAAS Cayman will not be required to comply with Section 16 of the Exchange                                                                   
 Act requiring insiders to file public reports of their stock ownership and trading activities and establishing insider liability for profits 
 realized from any “short-swing” trading transaction.                                                                                         |

CAAS Cayman expects to take advantage of these
exemptions if the Redomicile Merger is effected. Accordingly, after the completion of the Redomicile Merger, if you hold CAAS Cayman securities,
you may receive less information about CAAS Cayman and its business than you currently receive with respect to the Company and be afforded
less protection under the U.S. federal securities laws than you are entitled to currently.

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Additionally, as a foreign private issuer, CAAS
Cayman will be permitted to follow corporate governance practices in accordance with Cayman Islands laws in lieu of certain exchange corporate
governance standards, such as the following Nasdaq corporate governance standards requiring that:

| · | the majority of the board of directors be comprised of independent directors;   |
| · | executive compensation be determined by independent directors or a committee    
 of independent directors;                                                       |
| · | director nominees be selected, or recommended for selection by the board        
 of directors, by independent directors or a committee of independent directors; |
| · | an audit committee be comprised of at least three members; and                  |
| · | all related party transactions be reviewed by the audit committee or another    
 independent body of the board of directors.                                     |

Maples and Calder (Hong Kong) LLP, our Cayman Islands
counsel, has advised us that there are no comparable Cayman Islands laws related to the above corporate governance standards.

We believe the Redomicile Merger will enhance shareholder
value for the reasons discussed above. However, in light of the fact that the achievement of our objectives depends on many things, including,
among other things, future laws and regulations, as well as the development of our business, and we