Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 18

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 18
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 are described under “The Merger Agreement — Background and Reasons
for the Redomicile Merger.” Please also see the section entitled “Risk Factors and Caution Regarding Forward-Looking Statements
— Risks Related to the Redomicile Merger” for a description of certain risks associated with the Redomicile Merger.

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The Merger Agreement

A copy of the Merger Agreement is attached as Annex
A to this proxy statement/prospectus. The Company encourages you to read the entire Merger Agreement, including the Plan of Merger attached
to the Merger Agreement, carefully as it is the principal document governing the Redomicile Merger.

CAAS Cayman Ordinary Shares

If the Redomicile Merger is completed, each share
of the Company’s common stock shall convert into the right to receive one ordinary share of CAAS Cayman, credited as fully paid,
which ordinary share will be issued by CAAS Cayman in connection with the Redomicile Merger. Following the Redomicile Merger, the former
stockholders of the Company will become holders of CAAS Cayman ordinary shares, and CAAS Cayman, together with its subsidiaries, will
own and continue to conduct our business in substantially the same manner as is currently being conducted by the Company and its subsidiaries.

Treatment of the Company’s Options

In connection with the Redomicile Merger, each
outstanding option of the Company will be assumed by CAAS Cayman and will become an option of ordinary share(s) of CAAS Cayman under
the same terms and conditions.

Overview of the Merger Agreement

The Company and CAAS Cayman are required to complete
the Redomicile Merger only if certain customary conditions are satisfied or waived, including, among others, the registration statement
on Form F-4, of which this proxy statement/prospectus is a part, being declared effective by the SEC, ordinary shares of CAAS Cayman
is approved to be listed on the Nasdaq and the Merger Agreement and Plan of Merger being approved by the Company’s stockholders.

Board of Directors and Management of the CAAS Cayman Following the Redomicile Merger

Following the Redomicile Merger, CAAS Cayman will
be managed by the directors and officers appointed pursuant to the Plan of Merger, who are the same directors and executive officers that
manage the Company today.

Accounting Treatment

The Redomicile Merger will be