Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 37

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 37
---
 is expected to qualify as a “foreign private issuer” under the rules and regulations of the SEC. As a foreign
private issuer, CAAS Cayman will be exempt from certain rules under the 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. While CAAS Cayman
is expected to qualify as a foreign private issuer following the completion of the Redomicile Merger, if CAAS Cayman fails to qualify
as a foreign private issuer upon completion of the Redomicile Merger, or loses its status as a foreign private issuer at some future
time, CAAS Cayman will be required to comply fully with the reporting requirements of the Exchange Act applicable to U.S. domestic issuers
and would incur significant operational, administrative, legal and accounting costs that it would not incur as a foreign private issuer.

Changes in domestic and foreign tax laws could adversely affect CAAS Cayman, its subsidiaries and its shareholders, and our effective tax rate may increase whether we effect the Redomicile Merger or not.

Changes in tax laws, regulations or treaties or
the interpretation or enforcement thereof, in both or either of the U.S. or Cayman Islands, could adversely affect the tax consequences
to CAAS Cayman and its shareholders (whether associated with the Redomicile Merger or otherwise). While the Redomicile Merger is not
anticipated to have any material impact on our effective tax rate, there is uncertainty regarding the tax policies of the jurisdictions
where we operate, and our effective tax rate may increase and any such increase may be material.

The enforcement of civil liabilities against CAAS Cayman may be more difficult.

After the Redomicile Merger, the significant majority
of our officers and directors will reside outside of the United States. As a result, it may be difficult to serve legal process within
the United States upon any of these persons and it may also be difficult to enforce, both in and outside of the United States, judgments
you may obtain in the U.S. courts against these persons in any action, including actions based upon the civil liability provisions of
U.S. federal or state securities laws. Because CAAS Cayman is a Cayman Islands company, investors could also experience more difficulty
enforcing judgments obtained against CAAS Cayman in U.S. courts than would currently be the case for U.S. judgments obtained against
CAAS. In addition, it may be