Company: CAAS
Filing Date: 2025-08-04
Form Type: 424B3
Source: 0001104659-25-073486
Chunk: 94

Company: China Automotive Systems, Inc.
Filing Date: 2025-08-04
Form: 424B3
Chunk 94
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, employees’ wages must not be lower than local standards on minimum wages and must be paid to employees in a timely
manner.

Social Insurance

As required under the Regulation of Insurance
for Labor Injury implemented on January 1, 2004 and amended in 2010, the Provisional Measures for Maternity Insurance of Employees
of Corporations implemented on January 1, 1995, the Decisions on the Establishment of a Unified Program for Old-Aged Pension
Insurance of the State Council issued on July 16, 1997, the Decisions on the Establishment of the Medical Insurance Program for
Urban Workers of the State Council promulgated on December 14, 1998, the Unemployment Insurance Measures promulgated on January 22,
1999, and the PRC Social Insurance Law implemented on July 1, 2011 and amended on December 29, 2018, employers are required
to provide their employees in China with welfare benefits covering pension insurance, unemployment insurance, maternity insurance, work-related
injury insurance, and medical insurance. These payments are made to local administrative authorities. Any employer that fails to make
social insurance contributions may be ordered to rectify the non-compliance and pay the required contributions within a prescribed
time limit and be subject to a late fee. If the employer still fails to rectify the failure to make the relevant contributions within
the prescribed time, it may be subject to a fine ranging from one to three times the amount overdue. On July 20, 2018, the General
Office of the State Council issued the Plan for Reforming the State and Local Tax Collection and Administration Systems, which stipulated
that SAT would become solely responsible for collecting social insurance premiums.

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Housing Fund

In accordance with the Regulations on the Administration
of Housing Funds, which was promulgated by the State Council in 1999 and amended in 2002 and 2019, employers must register at the designated
administrative centers and open bank accounts for depositing employees’ housing funds. Employers and employees are also required
to pay and deposit housing funds, with an amount no less than 5% of the monthly average salary of the employee in the preceding year
in full and on time.

M&A Rules and Overseas Listing

On August 8, 2006, six PRC governmental and
regulatory agencies, including the MOFCOM and the CSRC, promulgated the M