Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 38

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 38
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The enforcement of civil liabilities against CAAS Cayman may be more difficult.

After the Redomicile Merger, the significant majority
of our officers and directors will reside outside of the United States. As a result, it may be difficult to serve legal process within
the United States upon any of these persons and it may also be difficult to enforce, both in and outside of the United States, judgments
you may obtain in the U.S. courts against these persons in any action, including actions based upon the civil liability provisions of
U.S. federal or state securities laws. Because CAAS Cayman is a Cayman Islands company, investors could also experience more difficulty
enforcing judgments obtained against CAAS Cayman in U.S. courts than would currently be the case for U.S. judgments obtained against CAAS.
In addition, it may be more difficult (or impossible) to bring some types of claims against CAAS Cayman in Cayman Islands courts than
it would be to bring similar claims against a U.S. company in a U.S. court.

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The market for CAAS Cayman shares may differ from the market for the Company’s common stock.

Although it is expected that the CAAS Cayman ordinary
shares will be authorized for listing on Nasdaq under the symbol “CAAS,” as a company incorporated under the laws of the Cayman
Islands, shares of CAAS Cayman may appeal to different institutional investors, or impact the level of investment by current investors
who may prefer or be required by internal guidelines to invest in companies that are incorporated in the United States. Accordingly, the
redomicile may impact our institutional investor base, or the level of their respective investments in our securities, and may result
in a change in the market prices, trading volume and volatility of the CAAS Cayman ordinary shares from those of the Company’s common
stock.

We expect to incur transaction costs and adverse financial consequences in the year of completion of the Redomicile Merger.

We expect to incur significant transaction costs
in connection with the Redomicile Merger, which have been and will continue to be expensed as incurred. The substantial majority of these
costs will be incurred regardless of whether the Redomicile Merger is completed and prior to your vote on the proposal. We expect to incur
costs and expenses, including professional fees, to comply with the Cayman Islands corporate and other laws. In addition, we expect to
incur