Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 37

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 37
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 of their stock ownership and trading activities and establishing insider liability for profits 
 realized from any “short-swing” trading transaction.                                                                                         |

Thus, you may not be afforded the same protections
or information under the applicable laws and the Amended CAAS Cayman Articles which would be made available to you if we remain a U.S.
corporation with publicly traded securities.

If CAAS Cayman fails to qualify as a foreign private issuer upon completion of the Redomicile Merger, or loses its status as a foreign private issuer at some future time, CAAS Cayman would be required to comply fully with the reporting requirements of the Exchange Act applicable to U.S. domestic issuers and would incur significant operational, administrative, legal and accounting costs that it would not incur as a foreign private issuer.

Following completion of the Redomicile Merger,
CAAS Cayman is expected to qualify as a “foreign private issuer” under the rules and regulations of the SEC. As a foreign
private issuer, CAAS Cayman will be exempt from certain rules under the Exchange Act that would otherwise apply if CAAS Cayman were
a company incorporated in the United States or did not meet the other conditions to qualify as a foreign private issuer. While CAAS Cayman
is expected to qualify as a foreign private issuer following the completion of the Redomicile Merger, if CAAS Cayman fails to qualify
as a foreign private issuer upon completion of the Redomicile Merger, or loses its status as a foreign private issuer at some future time,
CAAS Cayman will be required to comply fully with the reporting requirements of the Exchange Act applicable to U.S. domestic issuers and
would incur significant operational, administrative, legal and accounting costs that it would not incur as a foreign private issuer.

Changes in domestic and foreign tax laws could adversely affect CAAS Cayman, its subsidiaries and its shareholders, and our effective tax rate may increase whether we effect the Redomicile Merger or not.

Changes in tax laws, regulations or treaties or
the interpretation or enforcement thereof, in both or either of the U.S. or Cayman Islands, could adversely affect the tax consequences
to CAAS Cayman and its shareholders (whether associated with the Redomicile Merger or otherwise). While the Redomicile Merger is not anticipated
to have any material impact on our effective tax rate, there is uncertainty regarding the tax policies of the jurisdictions where we operate,
and our effective tax rate may increase and any such increase may be material