Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 58

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 58
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 the matters. Any unfavorable results from the investigations could harm our business operations and our reputation.

Recently, U.S. public companies that have substantially
all of their operations in China have been subjects of intense scrutiny, criticism and negative publicity by investors, financial commentators
and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative publicity has centered on financial and accounting
irregularities, lack of effective internal control over financial reporting, inadequate corporate governance and ineffective implementation
thereof and, in many cases, allegations of fraud. As a result of enhanced scrutiny, criticism and negative publicity, the publicly traded
stocks of many U.S.-listed Chinese companies have sharply decreased in value and, in some cases, have become virtually worthless or illiquid.
Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and are conducting internal and external investigations
into the allegations. It is not clear what effects the sector-wide investigations will have on the Company. If the Company becomes a subject
of any unfavorable allegations, whether such allegations are proven to be true or untrue, the Company will have to expend significant
resources to investigate such allegations and defend the Company. If such allegations were not proven to be baseless, the Company would
be severely hampered and the price of the stock of the Company could decline substantially. If such allegations were proven to be groundless,
the investigation might have significantly distracted the attention of the Company’s management.

Because a majority of our operations are in China, our business is subject to the complex and rapidly evolving laws and regulations there. The Chinese government may exercise significant oversight and discretion over the conduct of our business and may influence our operations from time to time, which could result in a material change in our operations and/or the value of our securities.

As a business operating in China, we are subject
to the laws and regulations of the PRC, which can be complex and evolve rapidly. The PRC government has the power to exercise significant
oversight and discretion over the conduct of our business, and the regulations to which we are subject may change from time to time. As
a result, there remain uncertainties regarding the application, interpretation, and enforcement of new and existing laws and regulations
in the PRC. Compliance with the complex and evolving PRC laws, regulations, and regulatory statements may be costly, and such compliance
or any associated inquiries or investigations or any other government actions may:

| · | Delay or impede our development,                                                                                                      |
| · | Result in negative publicity or