Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 28

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 28
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requirements.

During the fiscal years ended December 31,
2021, 2022, 2023 and 2024, the Company received loans which were interest free from its subsidiaries in the aggregate amount of $2.5
million, $6.1 million, $5.8 million and $16.9 million, respectively, and no principal was repaid in such years.

Although the Company announced and paid a special
cash dividend of $0.18 per common stock to the Company’s shareholders of record as of the close of business on June 26, 2014
and a special cash dividend of $0.80 per common stock to the company’s shareholders of record as of the close of business on July 30,
2024, respectively, it does not anticipate paying any other cash dividends in the foreseeable future. The Company currently intends to
retain future earnings, if any, to finance operations and the expansion of its business. Any future determination to pay cash dividends
will be at the discretion of the Company’s Board of Directors, and after the Redomicile Merger, the board of directors of CAAS
Cayman, and will be based upon the Company’s financial condition, operating results, capital requirements, plans for expansion,
restrictions imposed by any financing arrangements and any other factors that the Company’s board of directors deems relevant.

Recommendation to CAAS Shareholders

CAAS’ Board of Directors has determined
that each of the proposals outlined herein is advisable to and in the best interests of CAAS and its stockholders and recommended that
CAAS stockholders vote “FOR” the Merger Proposal and “FOR” the Adjournment Proposal, if presented.

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Foreign Private Issuer

Following completion of the Redomicile Merger,
CAAS Cayman is expected to qualify as a “foreign private issuer” within the meaning of the rules under the Exchange
Act and, as such, CAAS Cayman would be permitted to follow the corporate governance practices of its home country, the Cayman Islands,
in lieu of the corporate governance standards of Nasdaq applicable to U.S. domestic companies. For example, CAAS Cayman would not be
required to have a majority of the board consisting of independent directors nor have a compensation committee or a nominating committee
consisting entirely of independent directors. As a result, CAAS Cayman’s shareholders may not have the same protection afforded
to shareholders of U.S. domestic companies that are subject