Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 3

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 3
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 our business in substantially the same manner as is currently being conducted by the Company and its
subsidiaries. CAAS Cayman will be managed by the same directors and executive officers that manage the Company today.

As further explained in the accompanying proxy
statement/prospectus, our board of directors (the “Board of Directors”) expects that the reorganization of the Company’s
corporate structure, which will be facilitated by the approval of the Redomicile Merger, will result in the following benefits:

| · | reduction of our operational, administrative, legal and accounting costs                                                                   
 over the long term through the reduction of our reporting obligations and related expenses because CAAS Cayman is expected to qualify      
 as a “foreign private issuer” under the rules and regulations of the Securities and Exchange Commission (“SEC”)                            
 and be exempt from certain rules under the Securities Exchange Act of 1934, as amended (“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, which is in line with the Company’s current business and operations, the majority of which are conducted outside of the            
 United States; and                                                                                                                         |

| · | alignment of our structure with our international corporate strategy, which                               
 structure would more closely align with those of other companies operating in the same industry in China. |

We have chosen to redomicile under the laws of
the Cayman Islands because of its political and economic stability, effective judicial system, absence of exchange control or currency
restrictions and availability of professional and support services.

The Redomicile Merger cannot be completed unless
the proposal to adopt the Merger Agreement and the Plan of Merger is approved by the holders of a majority of the Company’s outstanding
shares of common stock. There are a number of risks which you should be aware of in considering whether to vote in favor of the proposal
to approve the Merger Agreement and the Plan of Merger. The accompanying proxy statement/prospectus contains important information about
the Merger Agreement and the Plan of Merger and related Redomicile Merger and the risks associated thereto and we encourage you to read
it. In particular, you should carefully consider the discussion in the section of the proxy statement/prospectus entitled “Risk
Factors and Caution Regarding Forward-Looking Statements” beginning on page 18.

After the Redomicile Merger, CAAS Cayman, as successor
to the Company