Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 74

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 74
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 based on the Cybersecurity Review Measures. However, there remains some uncertainty as to how relevant rules published by the
PRC government authorities will be interpreted or implemented, and our opinions summarized above are subject to any new laws, rules, and
regulations or detailed implementations and interpretations in any form. We cannot assure you that the relevant PRC government authorities,
including the CSRC and the CAC, would reach the same conclusion and hence, we may face regulatory actions or other sanctions from them.
For more details, see “Risk Factors and Caution Regarding Forward-Looking Statements — Risks Related to Doing Business in
China — Because a majority of our operations are in China, our business is subject to the complex and rapidly evolving laws and
regulations there. The Chinese government may exercise significant oversight and discretion over the conduct of our business and may influence
our operations at any time, which could result in a material change in our operations and/or the value of our securities.” and “Risk
Factors and Caution Regarding Forward-Looking Statements — Risks Related to Doing Business in China and Other Countries besides
The United States — The approval of, or filing or other procedures with, the CSRC or other Chinese regulatory authorities may be
required in connection with issuing our equity securities to foreign investors under Chinese law, and, if required, we cannot predict
whether we will be able, or how long it will take us, to obtain such approval or complete such filing or other procedures. We are also
required to obtain business licenses from Chinese authorities in connection with our general business activities currently conducted in
China.”

Cash Flows through Our Organization

The Company is a holding company with no operations
of its own. We conduct our operations in China primarily through our subsidiaries, particularly Genesis, which owns interests in eight
Sino-joint ventures and seven wholly-owned subsidiaries in the PRC. As a result, although other means are available for us to obtain financing
at the holding company level, the Company’s ability to pay dividends to the shareholders and to service any debt it may incur may
depend upon dividends paid by our PRC subsidiaries. If any of our subsidiaries incurs debt on its own behalf, the instruments governing
such debt may restrict its ability to pay dividends to the Company. In addition, our PRC subsidiaries are permitted to pay dividends to
CAAS only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Further,
our PRC subsidiaries are required to make