Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 69

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 69
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 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 common stock. We may also be subject to penalties
and sanctions imposed by the PRC regulatory agencies, including the 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 or become worthless.

There was no Chinese Communist Party official
who sits on the Company’s Board of Directors and that the Company’s certificate of incorporation and bylaws do not contain
any charter of the Chinese Communist Party.

Doing Business in China

As a result of our operations in China, the Chinese
government may intervene in or exert influence over our operations from time to time which could result in a material change in our operations
and/or the value of our securities. For example, the Chinese government has recently published new policies that significantly affected