Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 17

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 17
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 The mailing address of CAAS Cayman is D8 Henglong Building, Optics
Valley Software Park, Guanshan Avenue, East Lake Hi-Tech Zone, Wuhan City, Hubei 430073, the People’s Republic of China, and its
phone number is (86) 27-8757-0028.

Background and Reasons for the Redomicile Merger

The Company believes that the Redomicile Merger,
which would change its place of incorporation from Delaware to the Cayman Islands, (i) would allow the Company to reduce operational,
administrative, legal and accounting costs over the long term because CAAS Cayman is expected to qualify as a foreign private issuer
and be exempt from certain rules under the Exchange Act, which is in line with the Company’s current business and operations,
the majority of which are conducted outside of the United States, and (ii) will more closely align the Company’s structure
with our international corporate strategy. In reaching its decision to approve the Merger Agreement, the Board of Directors identified
several potential benefits to the Company’s stockholders, which are described under “The Merger Agreement — Background
and Reasons for the Redomicile Merger.” Please also see the section entitled “Risk Factors and Caution Regarding Forward-Looking
Statements — Risks Related to the Redomicile Merger” for a description of certain risks associated with the Redomicile Merger.

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The Merger Agreement

A copy of the Merger Agreement is attached as
Annex A to this proxy statement/prospectus. The Company encourages you to read the entire Merger Agreement, including the Plan of Merger
attached to the Merger Agreement, carefully as it is the principal document governing the Redomicile Merger.

CAAS Cayman Ordinary Shares

If the Redomicile Merger is completed, each share
of the Company’s common stock shall convert into the right to receive one ordinary share of CAAS Cayman, credited as fully paid,
which ordinary share will be issued by CAAS Cayman in connection with the Redomicile Merger. Following the Redomicile Merger, the former
stockholders of the Company will become holders of CAAS Cayman ordinary shares, and CAAS Cayman, together with its subsidiaries, will
own and continue to conduct our business in substantially the same manner as is currently being conducted by the Company and its subsidiaries.

Treatment of the Company’s Options