Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 39

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 39
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 to incur
costs and expenses, including professional fees, to comply with the Cayman Islands corporate and other laws. In addition, we expect to
incur attorneys’ fees, accountants’ fees, filing fees, mailing expenses, solicitation fees and financial printing expenses
in connection with the Redomicile Merger, even if the Redomicile Merger is not approved or completed. The Redomicile Merger also may negatively
affect us by diverting attention of our management and employees from our operating business during the period of implementation and by
increasing other administrative costs and expenses.

Our Board of Directors may choose to defer or abandon the Redomicile Merger.

Completion of the Redomicile Merger may be deferred
or abandoned, at any time, by action of our Board of Directors. While we currently expect the Redomicile Merger to take place promptly
after the proposal to adopt the Merger Agreement is approved, our Board of Directors may defer completion or may abandon the Redomicile
Merger because of, among other reasons, changes in existing or proposed laws, our determination that the Redomicile Merger would involve
tax or other risks that outweigh their benefits, our determination that the level of expected benefits associated with the Redomicile
Merger would otherwise be reduced, a dispute with the taxation authorities over the Redomicile Merger (or certain aspects thereof), an
unexpected increase in the costs to complete the Redomicile Merger or any other determination by our Board of Directors that the Redomicile
Merger would not be in the best interests of the Company or its stockholders or that the Redomicile Merger would have material adverse
consequences to the Company or its stockholders.

Risks Related to the Company’s Business and Industry

The cyclical nature of automotive production and sales could result in a reduction in automotive sales, which could adversely affect the Company’s business and results of operations.

The Company’s business relies on automotive
vehicle production and sales by its customers, which are highly cyclical and depend on general economic conditions and other factors,
including consumer spending and preferences and the price and availability of gasoline. They also can be affected by labor relations issues,
regulatory requirements and other factors. In the last two years, the price of automobiles in China has generally declined. Additionally,
the volume of automotive production in China has fluctuated from year to year, which gives rise to fluctuations in the demand
for the Company’s products. Therefore, any significant economic decline