Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 55

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 55
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 ended December 31,
2024.

Each year, the PCAOB will determine whether it
can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines
in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong
and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with
the Securities and Exchange Commission, we would be identified as a Commission-Identified Issuer following the filing of the annual report
for the relevant fiscal year. In accordance with the HFCAA, our securities would be prohibited from being traded on a national securities
exchange or in the over-the-counter trading market in the United States if we are identified as a Commission-Identified Issuer for two
consecutive years in the future. If our securities are prohibited from trading in the United States, there is no certainty that we will
be able to list on a non-U.S. exchange or that a market for our securities will develop outside of the United States. A prohibition of
being able to trade in the United States would substantially impair your ability to sell or purchase our securities when you wish to do
so, and the risk and uncertainty associated with delisting would have a negative impact on the price of our securities. Also, such a prohibition
would significantly affect our ability to raise capital on terms acceptable to us, or at all, which would have a material adverse impact
on our business, financial condition, and prospects.

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The non-U.S. activities of the Company’s non-U.S. subsidiaries may be subject to U.S. taxation.

The majority of the Company’s subsidiaries
are based in China and are subject to income taxes in the PRC. These China-based subsidiaries conduct substantially all of the Company’s
operations, and generate most of the Company’s income in China. The Company is a Delaware corporation and is subject to income tax
in the United States, and following the Redomicile Merger, CAAS Cayman will continue to be subject to income tax in the United States.
Under applicable U.S. federal income tax law, certain activities conducted in the PRC or other jurisdictions outside of the U.S. may give
rise to U.S. corporate income tax. These U.S. taxes would be imposed on CAAS Cayman when its subsidiaries that are controlled foreign
corporations (“CFCs”) generate income