Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 137

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 137
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 that are U.S. Holders. A U.S. Holder is a beneficial owner of Company common stock that is for U.S. federal income tax purposes:

| · | a                                                                                           
 citizen or individual resident of the United States;                                        |
| · | a                                                                                           
 corporation, or other entity taxable as a corporation, created or organized in or under the 
 laws of the United States, any state therein or the District of Columbia or treated as a    
 U.S. corporation pursuant to section 7874 of the Code;                                      |
| · | an                                                                                          
 estate, the income of which is subject to U.S. federal income taxation regardless of its    
 source; or                                                                                  |
| · | a                                                                                           
 trust if (i) a U.S. court can exercise primary supervision over the trust’s administration  
 and one or more United States persons (as defined in the Code) are authorized to control    
 all substantial decisions of the trust, or (ii) it has a valid election in effect under     
 applicable U.S. Treasury regulations to be treated as a United States person.               |

A “Non-U.S. Holder” is a
beneficial holder of our Company common stock who is neither a U.S. Holder nor a partnership or other pass-through entity for U.S. federal
income tax purposes.

A U.S. Holder will not recognize any gain or loss
for U.S. federal income tax purposes upon receipt of CAAS Cayman ordinary shares in the Redomicile Merger. A U.S. Holder will have an
adjusted tax basis in the CAAS Cayman ordinary shares received in the Redomicile Merger equal to the adjusted tax basis of the Company
common stock surrendered by such U.S. Holder in the Redomicile Merger. The holding period for CAAS Cayman ordinary shares received in
the Redomicile Merger will include the holding period for the Company common stock surrendered therefor.

The U.S. federal income tax consequences of owning
and disposing of CAAS Cayman ordinary shares received in the Redomicile Merger will be the same as the U.S. federal income tax consequences
of owning and disposing of Company common stock before the Redomicile Merger. Each U.S. Holder should consult its own tax advisor to
determine the particular U.S. federal, state or local or non-U.S. income or other tax consequences to it of the ownership and disposition
of CAAS Cayman ordinary shares.

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U.S.