Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 88

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 88
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 the foregoing, if we provide funding
to our wholly or majority foreign-owned subsidiaries through shareholder loans, the balance of such loans (i) cannot exceed the
difference between the total investment and the registered capital of the subsidiaries and we will need to register such loans with SAFE
or its local branches in the event that the currently valid foreign debt management mechanism applies, or (ii) will be subject to
the risk-weighted approach and the Net Asset Limits and we will need to file the loans with SAFE in its information system in the event
that the mechanism as provided in PBOC Notice No. 9 applies. Pursuant to PBOC Notice No. 9, after a transition period of one
year from January 11, 2017, the PBOC and SAFE would determine the cross-border financing administration mechanism for the FIEs after
evaluating the overall implementation of PBOC Notice No. 9. As of the date hereof, neither the PBOC nor SAFE has promulgated and
made public any further rules, regulations, notices, or circulars in this regard. It is uncertain which mechanism will be adopted by
the PBOC and SAFE in the future and what statutory limits will be imposed on us when providing loans to our PRC Subsidiaries.

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Offshore Investment

Under the Circular on Relevant Issues Concerning
Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and Roundtrip Investment Through Special Purpose
Vehicles, or SAFE Circular 37, effective on July 4, 2014, PRC residents are required to register with the local SAFE branch prior
to the establishment or control of an offshore special purpose vehicle, which is defined as an offshore enterprise directly established
or indirectly controlled by PRC residents for investment and financing purposes, with the enterprise assets or interests PRC residents
hold in China or overseas. The term “control” means to obtain the operating rights, right to proceeds, or decision-making
power of a special purpose vehicle through acquisition, trust, holding shares on behalf of others, voting rights, repurchase, convertible
bonds, or other means. An amendment to registration or subsequent filing with the local SAFE branch by such PRC residents is also required
if there is any change in the basic information of the offshore company or any material change with respect to the capital of the offshore
company. At the same time, SAFE has issued the Operation Guidance for the Issues Concerning Foreign