Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 22

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 22
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RC operating company but
a Delaware holding company with operations primarily conducted through its wholly owned direct subsidiaries, Genesis and HLUSA, and its
several indirect subsidiaries that are either wholly-owned or majority-owned by either Genesis or HLUSA. Our investors hold shares of
common stock in the Delaware holding company, and after redomicile merger, will hold ordinary shares of CAAS Cayman as a Cayman holding
company.

We do not have or intend to set up any subsidiary
or enter into any contractual arrangements to establish a variable interest entity structure with any entity in China.

Our holding company structure presents unique risks
as our investors may never directly hold equity interests in our operating subsidiaries and will be dependent upon dividends and other
distributions from our subsidiaries to finance our cash flow needs. Our ability to receive dividends and other contributions from our
subsidiaries are significantly affected by regulations promulgated by Hong Kong and PRC authorities. Any change in the interpretation
of existing rules and regulations or the promulgation of new rules and regulations may materially affect our operations and/or
the value of our securities, including causing the value of our securities to significantly decline or become worthless. For a detailed
description of the risks facing the Company associated with our structure, please refer to “Risk Factors and Caution Regarding Forward-Looking
Statements – Risks Related to Doing Business in China and Other Countries Besides the United States.”

Currently, PRC laws and regulations do not prohibit
direct foreign investment in our operating subsidiaries. Nonetheless, in light of the recent statements and regulatory actions by the
PRC government, such as those related to the promulgation of regulations prohibiting foreign ownership of Chinese companies operating
in certain industries, which are constantly evolving, and anti-monopoly concerns, we may be subject to the risks of uncertainty of any
future actions of the PRC government in this regard, which would likely result in a material change in our operations, including our ability
to continue our existing holding company structure, carry on our current business, accept foreign investments, and offer or continue to
offer securities to our investors, and the resulting adverse change in value to our securities. We may also be subject to penalties and
sanctions imposed by the PRC regulatory agencies, including the China Securities Regulatory Commission, or CSRC, if we fail to comply
with such rules and regulations, which would likely adversely affect the ability of the Company’s securities to continue to
trade on Nasdaq, which would likely cause the value of our securities to significantly decline