Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 19

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 19
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.S. corporation for U.S. federal income tax purposes. The Company intends the Redomicile
Merger to qualify as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended
(the “Code”). Assuming the Redomicile Merger qualifies as a reorganization, a U.S. Holder will not recognize any gain or
loss for U.S. federal income tax purposes upon receipt of CAAS Cayman ordinary shares in the Redomicile Merger. A U.S. holder will have
an adjusted tax basis in the CAAS Cayman ordinary shares received in the Redomicile Merger equal to the adjusted tax basis of the Company
common stock surrendered by such U.S. Holder in the Redomicile Merger. The holding period for CAAS Cayman ordinary shares received in
the Redomicile Merger will include the holding period for the Company common stock surrendered therefor. Please see the section entitled
“Proposal One — The Merger Proposal — Taxation — United States Taxation.”

Comparison of Stockholder/Shareholder Rights

Upon consummation of the Redomicile Merger, the
holders of issued and outstanding common stock of the Company will be entitled to receive CAAS Cayman ordinary shares. The rights of
the holders of the Company’s common stock are governed by the Company’s certificate of incorporation and bylaws, the DGCL
and the common law of the State of Delaware, while the rights of holders of CAAS Cayman’s ordinary shares are generally governed
by CAAS Cayman’s amended and restated memorandum and articles of association, the Companies Act of the Cayman Islands (As Revised),
and the common law of the Cayman Islands. There are differences in rights afforded by under Delaware law and Cayman Islands law. Please
see the section entitled “Comparison of Rights under Delaware and Cayman Islands Laws.”

Risks Associated with the Redomicile Merger

Holders of the Company’s common stock and,
assuming consummation of the Redomicile Merger, CAAS Cayman’s ordinary shares, will be subject to various risks associated with
CAAS Cayman’s business and industries. These risks are discussed in greater detail under the section entitled “Risk Factors
and Caution Regarding Forward-Looking Statements” in this proxy statement/prospectus. The Company encourages you to read and consider
all of these risks carefully.

The Holding Foreign Companies Accountable Act

Pursuant to the Holding Foreign Companies