Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 2

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 2
---

the proposal to adopt the Merger Agreement and the Plan of Merger is approved by the holders of a majority of the Company’s outstanding
shares of common stock. There are a number of risks which you should be aware of in considering whether to vote in favor of the proposal
to approve the Merger Agreement and the Plan of Merger. The accompanying proxy statement/prospectus contains important information about
the Merger Agreement and the Plan of Merger and related Redomicile Merger and the risks associated thereto and we encourage you to read
it. In particular, you should carefully consider the discussion in the section of the proxy statement/prospectus entitled “Risk
Factors and Caution Regarding Forward-Looking Statements” beginning on page 18.

After the Redomicile Merger, CAAS Cayman, as successor
to the Company, will continue to be treated as a U.S. corporation for U.S. federal income tax purposes. We intend the Redomicile Merger
to qualify as a reorganization for U.S. federal income tax purposes. Assuming the Redomicile Merger qualifies as a reorganization, stockholders
of the Company will not recognize gain or loss for U.S. federal income tax purposes as a result of the Redomicile Merger. For a more
detailed discussion of U.S. federal income tax considerations for stockholders, please see the section entitled “Proposal One — The
Merger Proposal — Taxation — United States Taxation” beginning on page 80. We urge you to consult your own tax advisor
regarding the particular tax consequences of the Redomicile Merger to you.

We expect the ordinary shares of CAAS Cayman to
be listed on the Nasdaq under the symbol “CAAS,” the same symbol under which your shares of common stock in CAAS are currently
listed and traded. Currently, there is no established public trading market for the ordinary shares of CAAS Cayman.

Your vote is important. Whether or not you expect to attend the Special Meeting, you are respectfully requested by the Board of Directors to sign, date and return the enclosed proxy promptly. Stockholders who execute proxies retain the right to revoke them at any time prior to the voting thereof. A return envelope, which requires no postage if mailed in the United States, is enclosed for your convenience.

| Sincerely, |                 |
|            | /s/ Chen Hanlin |
|            | Chen Hanlin     |
|            | Chairman        |

NEITHER THE SEC