Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 57

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 57
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 operations or financial conditions of the Company’s customers, which could harm the Company’s results of
operations.

The recent government interference into business activities of U.S.-listed Chinese companies may negatively impact our operations.

Certain PRC regulatory authorities issued Opinions
on Strictly Cracking Down on Illegal Securities Activities, made available to the public on July 6, 2021, which emphasized their
goal to strengthen the cross-border regulatory collaboration, to improve relevant laws and regulations on data security, cross-border
data transmission, and confidential information management, and provided that efforts will be made to revise the regulations on strengthening
the confidentiality and file management relating to the offering and listing of securities overseas, to implement the responsibility
on information security of overseas listed companies, and to strengthen the standardized management of cross-border information provision
mechanisms and procedures. China intends to improve regulation of cross-border data flows and security, crack down on illegal activity
in the securities market and punish fraudulent securities issuance, market manipulation and insider trading. China will also check sources
of funding for securities investment and control leverage ratios. The CAC has also opened a cyber security probe into several U.S.-listed
tech companies focusing on anti-monopoly, financial technology regulation and more recently, with the passage of the Data Security Law,
how companies collect, store, process and transfer data. If the Chinese government’s interference expands, our operations may be
negatively impacted in a significant way, although, presently, there is no discernible immediate impact.

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If the Company becomes directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve the matters. Any unfavorable results from the investigations could harm our business operations and our reputation.

Recently, U.S. public companies that have substantially
all of their operations in China have been subjects of intense scrutiny, criticism and negative publicity by investors, financial commentators
and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative publicity has centered on financial and accounting
irregularities, lack of effective internal control over financial reporting, inadequate corporate governance and ineffective implementation
thereof and, in many cases, allegations of fraud. As a result of enhanced scrutiny, criticism and negative publicity, the publicly traded
stocks of many U.S.-listed Chinese companies have sharply decreased in value and, in some cases, have become virtually worthless or illiquid.
Many of these companies are now subject to shareholder lawsuits and