Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 12

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 12
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 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”.

THE TAX TREATMENT OF THE REDOMICILE MERGER UNDER STATE OR LOCAL LAW
WILL DEPEND ON THE JURISDICTION. WE URGE YOU TO CONSULT YOUR OWN TAX ADVISOR PRIOR TO CONSENTING REGARDING THE PARTICULAR TAX CONSEQUENCES
OF THE REDOMICILE MERGER TO YOU.

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Q: Has the U.S. Internal Revenue Service rendered a ruling on any aspects of the Redomicile Merger?

A: No ruling has been requested from the U.S. Internal Revenue Service
(the “IRS”) in connection with the Redomicile Merger.

Q: When do you expect to complete the Redomicile Merger?

A:If the adoption of the Merger Agreement is approved by our
stockholders, we anticipate that the Redomicile Merger will become effective during the third quarter of 2025, although the Redomicile
Merger may be abandoned by our Board of Directors prior to its completion. Please see the section entitled “Risk Factors and Caution
Regarding Forward-Looking Statements — Risks Related to the Redomicile Merger — Our Board of Directors may choose to defer
or abandon the Redomicile Merger.”

Q: What types of information and reports will CAAS Cayman make available to shareholders following the Redomicile Merger?

A:Following completion of the Redomicile Merger, CAAS Cayman
is expected to qualify as a “foreign private issuer” under the rules and regulations of the SEC. CAAS Cayman will remain
subject to the provisions of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act. However, as a foreign private issuer, CAAS Cayman
will be exempt from certain rules under the Securities Exchange Act of 1934, as amended (“Exchange Act”), that would
otherwise apply