Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 45

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 45
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 effective internal controls are necessary
for the Company to produce reliable financial reports and are important to help prevent fraud. Any failure to maintain effective internal
control over financial reporting could result in the loss of investor confidence in the reliability of the Company’s financial
statements, which in turn could harm its business and negatively impact the trading price of its common stock. Furthermore, the Company
may need to incur additional costs and use additional management and other resources in an effort to comply with Section 404 of
the Sarbanes-Oxley Act and other requirements going forward.

The Company generally does not pay cash dividends on its common stock.

Although the Company announced and paid a special
cash dividend of $0.18 per common stock to the Company’s shareholders of record as of the close of business on June 26, 2014
and a special cash dividend of $0.80 per common stock to the company’s shareholders of record as of the close of business on July 30,
2024, respectively, it does not anticipate paying any other cash dividends in the foreseeable future. The Company currently intends to
retain future earnings, if any, to finance operations and the expansion of its business. Any future determination to pay cash dividends
will be at the discretion of the Board of Directors of the Company, and after the Redomicile Merger, the board of directors of CAAS Cayman,
and will be based upon the Company’s financial condition, operating results, capital requirements, plans for expansion, restrictions
imposed by any financing arrangements and any other factors that the Company’s Board of Directors deems relevant.

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Techniques employed by short sellers may drive down the market price of the Company’s common stock (or CAAS Cayman’s ordinary shares).

Short selling is the practice of selling securities
that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later
date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the
borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received
in the sale. As it is in the short seller’s best interests for the price of the stock to decline, many short sellers publish, or
arrange for the publication of, negative opinions regarding the relevant issuer and its business prospects in order to create negative
market momentum and generate profits for themselves after