Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 21

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 21
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 of our securities could be adversely affected as a result of anticipated negative impacts
of such legislative or executive actions upon, as well as negative investor sentiment toward, companies with significant operations in
mainland China and Hong Kong that are listed in the United States, regardless of whether such actions are implemented and regardless
of our actual operating performance.

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For more details, see “Risk Factors and
Caution Regarding Forward-Looking Statements — Risks Related to Doing Business in China and Other Countries besides The United
States — The PCAOB had historically been unable to inspect our auditor in relation to their audit work performed for our financial
statements and the inability of the PCAOB to conduct inspections of our auditor in the future may deprived our investors with the benefits
of such inspections.” And “Risk Factors and Caution Regarding Forward-Looking Statements — Risks Related to Doing Business
in China and Other Countries besides the United States — Our shares may be prohibited from trading in the United States under the
HFCAA in the future if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting of the shares,
or the threat of being delisted, may materially and adversely affect the value of your investment.”

Our Corporate Structure

The Company is not a PRC operating company but
a Delaware holding company with operations primarily conducted through its wholly owned direct subsidiaries, Genesis and HLUSA, and its
several indirect subsidiaries that are either wholly-owned or majority-owned by either Genesis or HLUSA. Our investors hold shares of
common stock in the Delaware holding company, and after redomicile merger, will hold ordinary shares of CAAS Cayman as a Cayman holding
company.

We do not have or intend to set up any subsidiary
or enter 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