Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 123

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 123
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, which imposes        
 certain restrictions on the selected disclosure of material information;                         |
| · | CAAS                                                                                             
 Cayman will not be required to comply with the sections of the Exchange Act regulating the       
 solicitation of proxies, consents or authorizations in respect of a security registered under    
 the Exchange Act; and                                                                            |
| · | CAAS                                                                                             
 Cayman will not be required to comply with Section 16 of the Exchange Act requiring              
 insiders to file public reports of their stock ownership and trading activities and establishing 
 insider liability for profits realized from any “short-swing” trading transaction.               |

CAAS Cayman expects to take advantage of these
exemptions if the Redomicile Merger is effected. Accordingly, after the completion of the Redomicile Merger, if you hold CAAS Cayman
securities, you may receive less information about CAAS Cayman and its business than you currently receive with respect to the Company
and be afforded less protection under the U.S. federal securities laws than you are entitled to currently.

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Additionally, as a foreign private issuer, CAAS
Cayman will be permitted to follow corporate governance practices in accordance with Cayman Islands laws in lieu of certain exchange
corporate governance standards, such as the following Nasdaq corporate governance standards requiring that:

| · | the                                                                                          
 majority of the board of directors be comprised of independent directors;                    |
| · | executive                                                                                    
 compensation be determined by independent directors or a committee of independent directors; |
| · | director                                                                                     
 nominees be selected, or recommended for selection by the board of directors, by independent 
 directors or a committee of independent directors;                                           |
| · | an                                                                                           
 audit committee be comprised of at least three members; and                                  |
| · | all                                                                                          
 related party transactions be reviewed by the audit committee or another independent body    
 of the board of directors.                                                                   |

Maples and Calder (Hong Kong) LLP, our Cayman
Islands counsel, has advised us that there are no comparable Cayman Islands laws related to the above corporate governance standards.

We believe the Redomicile Merger will enhance
shareholder value for the reasons discussed above. However, in light of the fact that the achievement of our objectives depends on many
things, including, among other things, future laws and regulations, as well as the development of our business, and we cannot predict
what impact, if any, the Redomicile Merger will have in