Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 154

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 154
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).

<div align='center'>RECITALS</div>

WHEREAS, the board of directors
of CAAS (the “”) and the sole director of CAAS Cayman (the “”) have
each determined that it is advisable and in the best interests of their respective stockholders or shareholders for CAAS to merge with
and into CAAS Cayman (the “”), with CAAS Cayman surviving and changing its name to China Automotive Systems, Inc.,
an exempted company incorporated under the laws of the Cayman Islands;

WHEREAS, the CAAS Board and
the CAAS Cayman Director have each approved the Merger, this Agreement, the Plan of Merger (as defined below) and, to the extent applicable,
the other transactions contemplated herein, pursuant to which CAAS Cayman will be the surviving company of the Merger, all upon the terms
and subject to the conditions set forth in this Agreement and the Plan of Merger, and whereby each issued and outstanding share of common
stock, par value US$0.0001 per share, of CAAS (“”) shall be converted into the right to receive one
ordinary share, par value US$0.001 per share, of CAAS Cayman (a “”);

WHEREAS, the consummation
of the Merger is subject to, among other things, the approval of this Agreement and the Plan of Merger by the affirmative vote of the
holders of a majority of the issued and outstanding shares of CAAS Common Stock; and

WHEREAS, the Parties intend
that the Merger qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code
of 1986, as amended (the “”), and that this Agreement shall be, and is hereby, adopted as a “plan of reorganization”
for purposes of Section 368(a) of the Code.

NOW, THEREFORE, in consideration
of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Parties hereby agree as follows:

<div align='center'>Article I

THE MERGER</div>

Section 1.01.

Subject to the terms and
on the conditions of this Agreement, and in accordance with Section 252 of the Delaware General Corporate Law (the “”)
and the Companies Act (As Revised) of the Cayman Islands (the “”), at the Effective Time (as defined
below), CA