Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 49

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 49
---
 higher costs associated with doing business internationally, restrictions
on the export or import of technology, difficulties in staffing and managing international operations, trade and tariff restrictions,
and variations in tariffs, quotas, taxes and other market barriers. These risks could harm the Company’s international expansion
efforts, which could in turn materially and adversely affect its business, operating results and financial condition.

In addition, under Section 1502 of the Dodd-Frank
Wall Street Reform and Consumer Protection Act, the SEC has adopted additional disclosure requirements related to the source of certain
“conflict minerals” for issuers for which such “conflict minerals” are necessary to the functionality or production
of a product manufactured, or contracted to be manufactured, by that issuer. The metals covered by the rules include tin, tantalum,
tungsten and gold, commonly referred to as “3TG.” If these materials are necessary to the functionality or production of a
product manufactured, or contracted to be manufactured, the rules require a reasonable country of origin inquiry be conducted to
determine if an issuer knows, or has reason to believe, that any of the minerals used in the production process may have originated from
the Democratic Republic of the Congo or an adjoining country. In such a case, if an issuer were not able to determine that the minerals
did not originate from a covered country or conclude that there is no reason to believe that the minerals used in the production process
may have originated in a covered country, that issuer could be required to perform supply chain due diligence on members of its supply
chain. Global supply chains can have multiple layers, thus the costs of complying with these new requirements could be substantial. These
new requirements may also reduce the number of suppliers that provide conflict-free metals and may also affect a company’s ability
to obtain products in sufficient quantities or at competitive prices. If the Company was to source such 3TG minerals that are necessary
to the functionality or production of a product manufactured, or contracted to be manufactured, compliance costs with these rules and/or
the unavailability of raw materials could have a material adverse effect on the Company’s results of operations.

The Company faces risks associated with currency exchange rate fluctuations; any adverse fluctuation may adversely affect its operating margins.

The majority of the Company’s current revenues
are received in Chinese currency. Conducting business in currencies other than U.S. dollars subjects the Company to fluctuations in currency
exchange rates that could have a negative impact on its reported operating results. Fluctuations in the value of the