Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 54

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 54
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, which could cause investors and potential investors in the shares to lose confidence in our audit procedures and reported financial
information and the quality of our financial statements.

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 their being delisted, may materially and adversely affect the value of your investment.

Pursuant to the HFCAA, if the SEC determines that
we have filed audit reports issued by a registered public accounting firm that has not been subject to inspections by the PCAOB for two
consecutive years, the SEC will prohibit our shares from being traded on a national securities exchange or in the over-the-counter trading
market in the United States.

On December 16, 2021, the PCAOB issued a
report to notify the SEC of its determination that the PCAOB was unable to inspect or investigate completely registered public accounting
firms headquartered in mainland China and Hong Kong and our auditor was subject to that determination. In May 2022, the SEC conclusively
listed us as a Commission-Identified Issuer under the HFCAA following the filing of our annual report on Form 10-K for the fiscal
year ended December 31, 2021. On December 15, 2022, the PCAOB removed mainland China and Hong Kong from the list of jurisdictions
where it is unable to inspect or investigate completely registered public accounting firms. For this reason, we do not expect to be identified
as a Commission-Identified Issuer under the HFCAA after we filed annual report on Form 10-K for the fiscal year ended December 31,
2024.

Each year, the PCAOB will determine whether it
can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines
in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong
and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed
with the Securities and Exchange Commission, we would be identified as a Commission-Identified Issuer following the filing of the annual
report for the relevant fiscal year. In accordance with the HFCAA, our securities would be prohibited from being traded on a national
securities exchange or in the over-the-counter trading market in the United States if we are identified as a Commission