CHINA AUTOMOTIVE SYSTEMS COMPLETES REDOMICILIATION MERGER

Rhea-AI Summary

China Automotive Systems (NASDAQ: CAAS), a prominent Chinese power steering components supplier, has successfully completed its redomiciliation merger. Through this corporate restructuring, the company has transformed from its previous jurisdiction to become incorporated under Cayman Islands law.

Under the terms of the redomiciliation merger, each existing share of CAAS common stock has been converted into one ordinary share of the new Cayman Islands-incorporated entity. The company will maintain its listing on the NASDAQ Capital Market under the same trading symbol "CAAS".

Positive

• Maintains NASDAQ Capital Market listing continuity
• One-to-one share conversion ratio preserves shareholder equity
• Potential tax and regulatory benefits from Cayman Islands incorporation

Negative

• Shareholders now subject to Cayman Islands corporate law which may provide different rights than previous jurisdiction

WUHAN, China, Sept. 11, 2025 /PRNewswire/ -- China Automotive Systems, Inc. (NASDAQ: CAAS) ("CAAS" or the "Company"), a leading power steering components and systems supplier in China, today announced that the redomiciliation merger to redomicile the Company as a Cayman Islands company (the "Redomiciliation Merger") has been completed.

Pursuant to the Redomiciliation Merger, each outstanding share of the common stock of the Company was converted into the right to receive one ordinary share of China Automotive Systems, Inc., a company incorporated under the laws of the Cayman Islands ("CAAS Cayman"). The ordinary shares of CAAS Cayman will be listed on the NASDAQ Capital Market under the trading symbol "CAAS," the same symbol under which the common stock of the Company was listed.

About China Automotive Systems, Inc.

Based in Hubei Province, the People's Republic of China, China Automotive Systems, Inc. is a leading supplier of power steering components and systems to the Chinese automotive industry, operating through its sixteen Sino-foreign joint ventures and wholly owned subsidiaries. The Company offers a full range of steering system parts for passenger automobiles and commercial vehicles. The Company currently offers four separate series of power steering with an annual production capacity of over 8 million sets of steering gears, columns and steering hoses. Its customer base is comprised of leading auto manufacturers, such as China FAW Group, Corp., Dongfeng Auto Group Co., Ltd., BYD Auto Company Limited, Beiqi Foton Motor Co., Ltd. and Chery Automobile Co., Ltd. in China, and Stellantis N.V. and Ford Motor Company in North America. For more information, please visit: http://www.caasauto.com.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements" as defined under the Private Securities Litigation Reform Act of 1995. Forward-looking statements represent our estimates and assumptions only as of the date of this press release. Our actual results may differ materially from the results described in or anticipated by our forward-looking statements due to certain risks and uncertainties. As a result, the Company's actual results could differ materially from those contained in these forward-looking statements due to a number of factors, including those described under the heading "Risk Factors" in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission on March 28, 2025, and in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. Any of these factors and other factors beyond our control, could have an adverse effect on the overall business environment, cause uncertainties in the regions where we conduct business, cause our business to suffer in ways that we cannot predict and materially and adversely impact our business, financial condition and results of operations. A prolonged disruption or any further unforeseen delay in our operations of the manufacturing, delivery and assembly process within any of our production facilities could continue to result in delays in the shipment of products to our customers, increased costs and reduced revenue. We expressly disclaim any duty to provide updates to any forward-looking statements made in this press release, whether as a result of new information, future events or otherwise.

For more information, please contact:

Jie Li
Chief Financial Officer
China Automotive Systems, Inc.
Email: jieli@chl.com.cn 

Kevin Theiss
Awaken Advisors
+1-212-510-8922
Kevin@awakenlab.com 

View original content:https://www.prnewswire.com/news-releases/china-automotive-systems-completes-redomiciliation-merger-302554331.html

SOURCE China Automotive Systems, Inc.

FAQ

What is the purpose of CAAS's redomiciliation merger to Cayman Islands?

The redomiciliation merger changes CAAS's incorporation from its previous jurisdiction to the Cayman Islands, which can offer potential tax and regulatory advantages while maintaining its NASDAQ listing.

How does the CAAS redomiciliation merger affect shareholders?

Each share of CAAS common stock was converted into one ordinary share of the Cayman Islands-incorporated entity, maintaining the same NASDAQ trading symbol 'CAAS'.

Will CAAS stock symbol change after the Cayman Islands redomiciliation?

No, CAAS will continue trading on the NASDAQ Capital Market under the same symbol 'CAAS'.

What is China Automotive Systems' main business?

CAAS is a leading power steering components and systems supplier in China.