# EDGAR Filing Document

**Accession Number:** 0001930207
**File Stem:** 0000000000-23-000432
**Filing Date:** 2023-1
**Character Count:** 28085
**Document Hash:** 7786eb98fde5971a84d385f0989c720b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000000000-23-000432.hdr.sgml**: 20231101

**ACCESSION NUMBER**: 0000000000-23-000432

**CONFORMED SUBMISSION TYPE**: UPLOAD

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230117

**FILED FOR**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CH AUTO Inc.
- **CENTRAL INDEX KEY:** 0001930207
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLES & PASSENGER CAR BODIES [3711]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** UPLOAD

**BUSINESS ADDRESS:**
- **STREET 1:** 6TH FLOOR, BUILDING C
- **STREET 2:** SHUNKE BUILDING, SHUNYI DISTRICT
- **CITY:** BEIJING
- **STATE:** F4
- **ZIP:** 101200
- **BUSINESS PHONE:** 00861080485511

**MAIL ADDRESS:**
- **STREET 1:** 4TH FLOOR, HARBOUR PLACE
- **STREET 2:** 103 SOUTH CHURCH STREET, P.O. BOX 10240
- **CITY:** GRAND CAYMAN
- **STATE:** E9
- **ZIP:** KY1-1002
**PUBLIC REFERENCE ACCESSION NUMBER**: 0001213900-22-047280

## Text-Extract

```

United States securities and exchange commission logo

                             January 17, 2023

       Qun Lu
       Chief Executive Officer
       CH AUTO Inc.
       6F, Building C
       Shunke Building
       Shunyi District, Beijing 101200, China

                                                        Re: CH AUTO Inc.
                                                            Amendment No. 2 to
Draft Registration Statement on Form F-4
                                                            Submitted December
30, 2022
                                                            CIK No. 0001930207

       Dear Qun Lu:

             We have reviewed your amended draft registration statement and
have the following
       comments. In some of our comments, we may ask you to provide us with
information so we
       may better understand your disclosure.

              Please respond to this letter by providing the requested
information and either submitting
       an amended draft registration statement or publicly filing your
registration statement on
       EDGAR. If you do not believe our comments apply to your facts and
circumstances or do not
       believe an amendment is appropriate, please tell us why in your
response.

             After reviewing the information you provide in response to these
comments and your
       amended draft registration statement or filed registration statement, we
may have additional
       comments.

       Amendment No. 2 to Draft Registration Statement on Form F-4

       Questions and Answers About the Business Combination and the Special
Meeting
       Will I experience dilution as a result of the Business Combination?,
page 12

   1.                                                   Refer to the table on
page 12 where you disclose a total of 1,668,000 Class A Ordinary
                                                        Shares to be issued to
MCAF Initial Shareholders (including rights shares). Please clarify
                                                        if the total should
instead be 1,668,500 shares as we note the narrative discussion under
                                                        the answer to this
question and footnote (5) to the table, indicate this total consists of
                                                        1,437,500 Pubco Class A
Ordinary Shares to be issued to the Sponsor in exchange for the
                                                        Insider Shares, 210,000
shares for MCAF common stock in the Private Placement, and
                                                        21,000 shares for the
rights in the Private Placement. Please advise or revise throughout
 Qun Lu
CH AUTO Inc.
January 17, 2023
Page 2
         the filing.

2.       It appears the introductory paragraph above the table on page 12
should be revised to
         clarify that the scenarios include a Minimum Redemption scenario
rather than a No
         Redemption scenario, and explain the reasons thereof. Reference is
made to footnote (7)
         to the tables on page 46. It also appears footnotes (1), (2), and (3)
should be revised. In
         addition, please disclose the date that the actual redemption of the
2,432,520 shares
         occurred, as approved at the special meeting of MCAF stockholders held
on December 15,
         2022, and include that date in the first bullet point on page 189 and
elsewhere where such
         discussion is provided.

3.       We note your response to comment 1 and reissue. We note that the table
refers to "MCAF
         Initial Shareholders." By footnote or otherwise, revise the table to
clearly provide and/or
         define only the sponsor and its affiliates    total potential
ownership interest in the
         combined company.
Summary of the Proxy Statement/Prospectus, page 21

4.       We note your revisions in response to prior comment 6. Refer to the
sentence that begins
         "In light of the foregoing circumstances, the Company's independent
registered public
         accounting firm has included...the six months ended June 30, 2022 were
issued". Please
         clarify that the auditors included an explanatory paragraph expressing
substantial doubt in
         their report on your December 31, 2021 consolidated financial
statements since there is no
         auditors' report for the six months ended June 30, 2022. Please also
revise the related
         disclosures on pages 62-64, 97-98 and 175. Further, please clarify in
the last sentence
         of the top paragraph on page 176 that your auditors issued a going
concern paragraph in
         their report on your December 31, 2021 and 2020 consolidated financial
statements
         expressing substantial doubt as to your ability to continue as a going
concern.

5.     We note your responses to comments 2 and 3 and reissue. Please include
the table in the
       prospectus summary. The table should provide a detailed sources and uses
of funds in
       addition to your plan to repay liabilities. For example, the table
should (1) state the
       amount of the expected proceeds from the Business Combination, including
the amount
       remaining in the trust account, PIPE financings and any other private
financings in
       connection with the Business Combination and (2) provide detailed
disclosure stating the
       amount of proceeds that you intend to allocate to (i) fund operations,
(ii) cure loans, debt,
       accounts payable and other liabilities in default and (iii) settle
lawsuits or satisfy
       judgements. Clearly disclose which short-term loans and borrowings that
you intend to
FirstName LastNameQun Lu
       repay with proceeds from the Business Combination. Additionally, revise
this section to
Comapany    NameCHdisclose
       prominently    AUTO theInc.total amount of borrowings, accounts payable
and other
Januaryliabilities
         17, 2023currently
                   Page 2 under default.
FirstName LastName
 Qun Lu
FirstName
CH AUTO LastNameQun    Lu
           Inc.
Comapany
January 17,NameCH
            2023   AUTO Inc.
January
Page 3 17, 2023 Page 3
FirstName LastName
6.       We note that your disclosure that the recent extension approved by
MCAF   s shareholders
         led to a redemption of 2,432,520 MCAF   s shares in the amount of
$24.5 million. Please
         update your disclosure to reflect the outcome of the special meeting
of MCAF   s
         stockholders held on December 15, 2022, including the "Background of
the Business
         Combination" where you should explain the reason the amendments were
sought, the
         conflicts of interest pertaining to your Sponsor, directors and
officer, and the impact on
         the transaction. Additionally, disclose the overall impact to the
amount of funds in the
         Trust Account (and the amount available for liquidation and/or
redemption). Finally,
         please make appropriate updates about the terms of the amended and
restated certificate of
         incorporation and trust agreement and the related party extension
loans where disclosed in
         your registration statement.
Selected Historical Financial Information of MCAF, page 44

7.       Please provide a footnote to the interim balance sheet data to
quantify and disclose the
         facts and circumstances related to MCAF public stockholders exercising
redemption
         rights in connection with the extension that resulted in cash
redemptions of over $24
         million subsequent to September 30, 2022. Please also disclose and
discuss the cash
         redemptions in MCAF's MD&A.
Manufacturing, page 141

8.       We note your response to prior comment 8. Please elaborate on the
milestones needed
         to achieve to ramp up your production from 100 vehicles to 9,000
vehicles in 2023.
         Please also discuss your projected timeline, anticipated location and
funding needed
         to establish a new manufacturing facility referenced on page 141.
Offline Sales Network, page 142

9.       Please disclose the number of your current brand stores and partner
stores.
Unaudited Pro Forma Condensed Combined Financial Statements, page 188

10.      Refer to page 191. In order to allow shareholders to more clearly
evaluate the financial
         condition of each entity prior to the proposed business combination,
it appears you should
         revise the pro forma balance sheet to add a column for the cash
redemptions that occurred
         at MCAF subsequent to the balance sheet data and related subtotal
column to
         reflect MCAF's historical balances adjusted for the cash redemptions
that resulted from
         the extension request and occurred after the balance sheet date but
prior to the proposed
         business combination. Please refer to Rule 11-02(b)(4) of Regulation
S-X.
11.      We have reviewed the revisions made in response to prior comments 5
and 13. In regard
         to the disclosures in note 3(8) on page 198, and based on the
disclosures on page 117, it
         remains unclear how you determined it is most probable that CH-Auto
(Hong Kong)
         Limited will directly own no less than ninety percent (90%) of the
then-issued and
         outstanding equity interests CH-AUTO TECH as a result of the
Reorganization, absent
 Qun Lu
FirstName
CH AUTO LastNameQun    Lu
           Inc.
Comapany
January 17,NameCH
            2023   AUTO Inc.
January
Page 4 17, 2023 Page 4
FirstName LastName
         binding agreements with shareholders or a provision the Reorganization
will not occur if
         shareholders holding greater than 10% in equity interests elect not to
exchange their
         interests. Please clarify or revise. In regard to the pro forma
financial statements, please
         also address the following:
             Given CH-AUTO TECH shareholders can elect to exchange, maintain or
sell their
              equity interests in CH-AUTO TECH as a result of the
Reorganization under
              Approaches I, II or III, as described on page 117, more fully
explain how you
              determined the pro forma financial statements appropriately
reflect the range of
              possible results as required by Rule 11-02(a)(10) of Regulation
S-X;
             Explain why the non-controlling interest has no impact on the
annual and interim pro
              forma statements of operations; and
             Explain if and how the Advisors Shares disclosed on page 12 are
accounted for in the
              pro forma financial statements.

Compensation of Directors and Executive Officers, page 210

12.      Please update your compensation disclosure to reflect the fiscal year
ended December 31,
         2022.
Index to Consolidated Financial Statements
CH AUTO Inc., page F-1

13.      We have reviewed the revisions made in response to prior comment 15.
We note the
         auditors' reports for CH AUTO Inc. included on pages F-52 and F-60
appear to be
         duplicative, except as to the auditors' name as signed and the firm's
letterhead. In this
         regard, the auditors' report on page F-52 covers the period as of
April 30, 2022 and for the
         period from January 25, 2022 through April 30, 2022, and is signed by
Marcum
         Bernstein & Pinchuk LLP, whereas the auditors' report on page F-60
covers the same
         period and is signed by Marcum Asia CPAs LLP (Formerly Marcum
Bernstein & Pinchuk
         LLP). Please include only one auditors' report for this period in the
next
         amendment. Further, tell us the consideration given to instead
referring to the audit firm
         as Marcum Asia CPAs LLP (Formerly Marcum Bernstein & Pinchuk LLP)
throughout the
         filing, such as on pages 22 and 80, and also under Experts on page 254
and in the Exhibit
         Index listing in Part II.

14.      It appears you have included audited financial statements of CH Auto
Inc. as of April 30,
         2022 and for the period of January 25, 2022 through April 30, 2022,
along with unaudited
         interim financial statements of CH Auto Inc. as of June 30, 2022 and
for the period
         January 25, 2022 through June 30, 2022. Please confirm if our
understanding is correct
         and revise the Index to Consolidated Financial Statements for CH Auto
Inc. on page F-1
         to remove the line item for inclusion of an auditors' report for the
June 30, 2022 unaudited
         interim financial statements.
 Qun Lu
CH AUTO Inc.
January 17, 2023
Page 5
Index to Consolidated Financial Statements
Mountain Crest Acquisition Corp. IV, page F-2

15.      Under the listing of the Unaudited Condensed Financial Statements,
please clarify that
         you have included financial statements for the three and nine months
ended September 30,
         2022. Your current disclosure states the three and six months ended
September 30, 2022.
         This applies to the line items for the statements of operations and
changes in
         stockholders' (deficit). For the statements of cash flows line item,
please revise to state
         for the nine months ended September 30, 2022.

Consolidated Financial Statements - CH-Auto Technology Corporation, page F-4

16.      We note the audited financial statements of CH-Auto Technology
Corporation, the
         registrant's predecessor, are older than 12 months and the filing
essentially represents the
         registrant's initial public offering; therefore, it appears you may be
required to provide
         updated annual financial statements and related disclosures pursuant
to Item 14 of Form
         F-4 and Item 8.A.4 of Form 20-F or, if applicable, provide the
representations required by
         Instruction 2 to Item 8.A.4 filed in an exhibit to the filing.
General

17.      We note your disclosure that MCAF received revenue projections. Please
elaborate on the
         assumptions underlying the projections. Please tell us whether any
other projections were
         provided to MCAF.
        You may contact Beverly Singleton at 202-551-3328 or Anne McConnell at
202-551-
3709 if you have questions regarding comments on the financial statements and
related
matters. Please contact Evan Ewing at 202-551-5920 or Asia Timmons-Pierce at
202-551-3754
with any other questions.

FirstName LastNameQun Lu                                       Sincerely,
Comapany NameCH AUTO Inc.
                                                               Division of
Corporation Finance
January 17, 2023 Page 5                                        Office of
Manufacturing
FirstName LastName

```

### Attached PDF Documents

**Attachment 1:** `filename1`

![img-0.jpeg](img-0.jpeg)

CORPORATION FINANCE

# UNITED STATES  
SECURITIES AND EXCHANGE COMMISSION  
WASHINGTON, D.C. 20549

January 17, 2023

Qun Lu  
Chief Executive Officer  
CH AUTO Inc.  
6F, Building C  
Shunke Building  
Shunyi District, Beijing 101200, China

**Re: CH AUTO Inc.**

**Amendment No. 2 to Draft Registration Statement on Form F-4**

**Submitted December 30, 2022**

**CIK No. 0001930207**

Dear Qun Lu:

We have reviewed your amended draft registration statement and have the following comments. In some of our comments, we may ask you to provide us with information so we may better understand your disclosure.

Please respond to this letter by providing the requested information and either submitting an amended draft registration statement or publicly filing your registration statement on EDGAR. If you do not believe our comments apply to your facts and circumstances or do not believe an amendment is appropriate, please tell us why in your response.

After reviewing the information you provide in response to these comments and your amended draft registration statement or filed registration statement, we may have additional comments.

# Amendment No. 2 to Draft Registration Statement on Form F-4

# Questions and Answers About the Business Combination and the Special Meeting  
Will I experience dilution as a result of the Business Combination?, page 12

1. Refer to the table on page 12 where you disclose a total of 1,668,000 Class A Ordinary Shares to be issued to MCAF Initial Shareholders (including rights shares). Please clarify if the total should instead be 1,668,500 shares as we note the narrative discussion under the answer to this question and footnote (5) to the table, indicate this total consists of 1,437,500 Pubco Class A Ordinary Shares to be issued to the Sponsor in exchange for the Insider Shares, 210,000 shares for MCAF common stock in the Private Placement, and 21,000 shares for the rights in the Private Placement. Please advise or revise throughout

Qun Lu
CH AUTO Inc.
January 17, 2023
Page 2

the filing.

2. It appears the introductory paragraph above the table on page 12 should be revised to clarify that the scenarios include a Minimum Redemption scenario rather than a No Redemption scenario, and explain the reasons thereof. Reference is made to footnote (7) to the tables on page 46. It also appears footnotes (1), (2), and (3) should be revised. In addition, please disclose the date that the actual redemption of the 2,432,520 shares occurred, as approved at the special meeting of MCAF stockholders held on December 15, 2022, and include that date in the first bullet point on page 189 and elsewhere where such discussion is provided.

3. We note your response to comment 1 and reissue. We note that the table refers to "MCAF Initial Shareholders." By footnote or otherwise, revise the table to clearly provide and/or define only the sponsor and its affiliates' total potential ownership interest in the combined company.

# Summary of the Proxy Statement/Prospectus, page 21

4. We note your revisions in response to prior comment 6. Refer to the sentence that begins "In light of the foregoing circumstances, the Company's independent registered public accounting firm has included...the six months ended June 30, 2022 were issued". Please clarify that the auditors included an explanatory paragraph expressing substantial doubt in their report on your December 31, 2021 consolidated financial statements since there is no auditors' report for the six months ended June 30, 2022. Please also revise the related disclosures on pages 62-64, 97-98 and 175. Further, please clarify in the last sentence of the top paragraph on page 176 that your auditors issued a going concern paragraph in their report on your December 31, 2021 and 2020 consolidated financial statements expressing substantial doubt as to your ability to continue as a going concern.

5. We note your responses to comments 2 and 3 and reissue. Please include the table in the prospectus summary. The table should provide a detailed sources and uses of funds in addition to your plan to repay liabilities. For example, the table should (1) state the amount of the expected proceeds from the Business Combination, including the amount remaining in the trust account, PIPE financings and any other private financings in connection with the Business Combination and (2) provide detailed disclosure stating the amount of proceeds that you intend to allocate to (i) fund operations, (ii) cure loans, debt, accounts payable and other liabilities in default and (iii) settle lawsuits or satisfy judgements. Clearly disclose which short-term loans and borrowings that you intend to repay with proceeds from the Business Combination. Additionally, revise this section to prominently disclose the total amount of borrowings, accounts payable and other liabilities currently under default.

Qun Lu
CH AUTO Inc.
January 17, 2023
Page 3

6. We note that your disclosure that the recent extension approved by MCAF's shareholders led to a redemption of 2,432,520 MCAF's shares in the amount of $24.5 million. Please update your disclosure to reflect the outcome of the special meeting of MCAF's stockholders held on December 15, 2022, including the "Background of the Business Combination" where you should explain the reason the amendments were sought, the conflicts of interest pertaining to your Sponsor, directors and officer, and the impact on the transaction. Additionally, disclose the overall impact to the amount of funds in the Trust Account (and the amount available for liquidation and/or redemption). Finally, please make appropriate updates about the terms of the amended and restated certificate of incorporation and trust agreement and the related party extension loans where disclosed in your registration statement.

# Selected Historical Financial Information of MCAF, page 44

7. Please provide a footnote to the interim balance sheet data to quantify and disclose the facts and circumstances related to MCAF public stockholders exercising redemption rights in connection with the extension that resulted in cash redemptions of over $24 million subsequent to September 30, 2022. Please also disclose and discuss the cash redemptions in MCAF's MD&A.

# Manufacturing, page 141

8. We note your response to prior comment 8. Please elaborate on the milestones needed to achieve to ramp up your production from 100 vehicles to 9,000 vehicles in 2023. Please also discuss your projected timeline, anticipated location and funding needed to establish a new manufacturing facility referenced on page 141.

# Offline Sales Network, page 142

9. Please disclose the number of your current brand stores and partner stores.

# Unaudited Pro Forma Condensed Combined Financial Statements, page 188

10. Refer to page 191. In order to allow shareholders to more clearly evaluate the financial condition of each entity prior to the proposed business combination, it appears you should revise the pro forma balance sheet to add a column for the cash redemptions that occurred at MCAF subsequent to the balance sheet data and related subtotal column to reflect MCAF's historical balances adjusted for the cash redemptions that resulted from the extension request and occurred after the balance sheet date but prior to the proposed business combination. Please refer to Rule 11-02(b)(4) of Regulation S-X.

11. We have reviewed the revisions made in response to prior comments 5 and 13. In regard to the disclosures in note 3(8) on page 198, and based on the disclosures on page 117, it remains unclear how you determined it is most probable that CH-Auto (Hong Kong) Limited will directly own no less than ninety percent (90%) of the then-issued and outstanding equity interests CH-AUTO TECH as a result of the Reorganization, absent

Qun Lu
CH AUTO Inc.
January 17, 2023
Page 4

binding agreements with shareholders or a provision the Reorganization will not occur if shareholders holding greater than 10% in equity interests elect not to exchange their interests. Please clarify or revise. In regard to the pro forma financial statements, please also address the following:

- Given CH-AUTO TECH shareholders can elect to exchange, maintain or sell their equity interests in CH-AUTO TECH as a result of the Reorganization under Approaches I, II or III, as described on page 117, more fully explain how you determined the pro forma financial statements appropriately reflect the range of possible results as required by Rule 11-02(a)(10) of Regulation S-X;
- Explain why the non-controlling interest has no impact on the annual and interim pro forma statements of operations; and
- Explain if and how the Advisors Shares disclosed on page 12 are accounted for in the pro forma financial statements.

# Compensation of Directors and Executive Officers, page 210

12. Please update your compensation disclosure to reflect the fiscal year ended December 31, 2022.

# Index to Consolidated Financial Statements

# CH AUTO Inc., page F-1

13. We have reviewed the revisions made in response to prior comment 15. We note the auditors' reports for CH AUTO Inc. included on pages F-52 and F-60 appear to be duplicative, except as to the auditors' name as signed and the firm's letterhead. In this regard, the auditors' report on page F-52 covers the period as of April 30, 2022 and for the period from January 25, 2022 through April 30, 2022, and is signed by Marcum Bernstein & Pinchuk LLP, whereas the auditors' report on page F-60 covers the same period and is signed by Marcum Asia CPAs LLP (Formerly Marcum Bernstein & Pinchuk LLP). Please include only one auditors' report for this period in the next amendment. Further, tell us the consideration given to instead referring to the audit firm as Marcum Asia CPAs LLP (Formerly Marcum Bernstein & Pinchuk LLP) throughout the filing, such as on pages 22 and 80, and also under Experts on page 254 and in the Exhibit Index listing in Part II.

14. It appears you have included audited financial statements of CH Auto Inc. as of April 30, 2022 and for the period of January 25, 2022 through April 30, 2022, along with unaudited interim financial statements of CH Auto Inc. as of June 30, 2022 and for the period January 25, 2022 through June 30, 2022. Please confirm if our understanding is correct and revise the Index to Consolidated Financial Statements for CH Auto Inc. on page F-1 to remove the line item for inclusion of an auditors' report for the June 30, 2022 unaudited interim financial statements.

Qun Lu
CH AUTO Inc.
January 17, 2023
Page 5

# Index to Consolidated Financial Statements
Mountain Crest Acquisition Corp. IV, page F-2

15. Under the listing of the Unaudited Condensed Financial Statements, please clarify that you have included financial statements for the three and nine months ended September 30, 2022. Your current disclosure states the three and six months ended September 30, 2022. This applies to the line items for the statements of operations and changes in stockholders' (deficit). For the statements of cash flows line item, please revise to state for the nine months ended September 30, 2022.

# Consolidated Financial Statements - CH-Auto Technology Corporation, page F-4

16. We note the audited financial statements of CH-Auto Technology Corporation, the registrant's predecessor, are older than 12 months and the filing essentially represents the registrant's initial public offering; therefore, it appears you may be required to provide updated annual financial statements and related disclosures pursuant to Item 14 of Form F-4 and Item 8.A.4 of Form 20-F or, if applicable, provide the representations required by Instruction 2 to Item 8.A.4 filed in an exhibit to the filing.

# General

17. We note your disclosure that MCAF received revenue projections. Please elaborate on the assumptions underlying the projections. Please tell us whether any other projections were provided to MCAF.

You may contact Beverly Singleton at 202-551-3328 or Anne McConnell at 202-551-3709 if you have questions regarding comments on the financial statements and related matters. Please contact Evan Ewing at 202-551-5920 or Asia Timmons-Pierce at 202-551-3754 with any other questions.

Sincerely,

Division of Corporation Finance
Office of Manufacturing