Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 28

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 28
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% of its accumulated after-tax profits each year, if
any, to fund a certain statutory reserve fund, until the aggregate amount of such fund reaches 50% of its registered capital. At its discretion,
a wholly foreign-owned enterprise may allocate a portion of its after-tax profits based on PRC accounting standards to an enterprise expansion
fund, or a staff welfare and bonus fund. Such reserve funds and discretionary funds cannot be distributed to us as dividends. In addition,
registered share capital and capital reserve accounts are also restricted from withdrawal in the PRC, up to the amount of net assets held
in each operating subsidiary. The amounts restricted include the paid-up capital and the statutory reserve funds of our PRC subsidiaries,
totaling RMB 504.7 million, RMB 508.8 million, RMB 514.0 million and RMB522.3 million as of December 31, 2021, 2022, 2023 and 2024,
respectively.

The Company may provide funding to its PRC subsidiaries
by making capital contributions or providing loans, subject to the satisfaction of applicable government registration, filing and approval
requirements.

During the fiscal years ended December 31,
2021, 2022, 2023 and 2024, the Company received loans which were interest free from its subsidiaries in the aggregate amount of $2.5 million,
$6.1 million, $5.8 million and $16.9 million, respectively, and no principal was repaid in such years.

Although the Company announced and paid a special
cash dividend of $0.18 per common stock to the Company’s shareholders of record as of the close of business on June 26, 2014
and a special cash dividend of $0.80 per common stock to the company’s shareholders of record as of the close of business on July 30,
2024, respectively, it does not anticipate paying any other cash dividends in the foreseeable future. The Company currently intends to
retain future earnings, if any, to finance operations and the expansion of its business. Any future determination to pay cash dividends
will be at the discretion of the Company’s Board of Directors, and after the Redomicile Merger, the board of directors of CAAS Cayman,
and will be based upon the Company’s financial condition, operating results, capital requirements, plans for expansion, restrictions
imposed by any financing arrangements and any other factors that the Company’s board of directors deems relevant.

Recommendation to