#China #Wuhan #Cayman Islands #China Automotive #CAAS

China Automotive Systems Completes Redomiciliation Merger

On September 11, 2025, China Automotive Systems, Inc. (NASDAQ: CAAS) announced the successful completion of its redomiciliation merger. This critical move allows the company to relocate its domicile to the Cayman Islands, enabling better operational flexibility and alignment with global business practices.

The redomiciliation process involved converting each existing share of the company's common stock into a corresponding ordinary share of its new entity, China Automotive Systems, Inc., incorporated in the Cayman Islands. Notably, the trading symbol 'CAAS' will remain unchanged on the NASDAQ Capital Market, ensuring continuity for current shareholders.

Based in Wuhan, Hubei Province, China Automotive Systems is recognized as a leading supplier of power steering components and systems for the automotive sector in China. Operating through a network of sixteen joint ventures and wholly-owned subsidiaries, the company offers a comprehensive suite of steering system parts suitable for both passenger cars and commercial vehicles. Its operations boast an impressive annual production capacity exceeding 8 million sets of steering gears, columns, and hoses.

Prominent customers of China Automotive Systems include major automotive manufacturers such as the China FAW Group, Dongfeng Auto Group, BYD Auto, Beiqi Foton Motor, and Chery Automobile, alongside international giants like Stellantis N.V. and Ford Motor Company, enhancing its footprint across various markets.

The decision to redomicile in the Cayman Islands stems from the potential benefits of a more favorable regulatory environment and tax structure. This strategic transition can facilitate enhanced capital management and attract global investors, positioning CAAS for greater competitiveness in a rapidly evolving automotive landscape.

In announcements accompanying the merger completion, China Automotive Systems emphasized its ongoing commitment to innovation and quality. The company plans to leverage this new structure to expand its market share and invest further in research and development, aligning with global trends towards electric vehicles and advanced automotive technologies.

As CAAS transitions into this new phase, it continues to navigate challenges such as operational disruptions and market uncertainties that could affect its business. Nevertheless, the company's leadership remains optimistic about the future, expressing confidence that this redomiciliation will enhance operational efficiency and shareholder value.

In terms of forward-looking statements, the company warns that outcomes from this merger could be influenced by various factors, including market conditions and regulatory changes, which are inherent to the automotive industry’s dynamic nature. CAAS encourages shareholders and stakeholders to stay informed as they navigate this new chapter.

For further updates and investor relations, stakeholders can access comprehensive information on the company’s official website at www.caasauto.com.

Overall, the successful completion of this redomiciliation merger marks a significant milestone in China Automotive Systems’ journey, setting the stage for a promising future in the global automotive arena.