Company: CNTB
Filing Date: 2025-06-10
Form Type: F-3
Source: 0001193125-25-138482
Chunk: 122

Company: Connect Biopharma Holdings Ltd
Filing Date: 2025-06-10
Form: F-3
Chunk 122
---
 exceeds your tax basis in your ADSs or Ordinary Shares, as capital gain. However, we currently do not, and we do not intend to, calculate our earnings and profits under U.S. federal income tax principles. Therefore, a U.S. Holder
should expect that any distribution will generally be reported as a dividend even if that distribution would otherwise be treated as a non-taxable return of capital or as capital gain under the rules described
above.

The amount of any distribution paid in foreign currency will be the U.S. dollar amount calculated by reference to
the exchange rate in effect on the date of receipt (or deemed receipt), regardless of whether the payment is in fact converted into U.S. dollars. If the distribution is converted into U.S. dollars on the date of receipt, a U.S. Holder should not be
required to recognize foreign currency gain or loss in respect of the distribution. A U.S. Holder may have foreign currency gain or loss if the foreign currency is converted into U.S. dollars after the date of receipt.

With respect to certain non-corporate U.S. Holders, including individual U.S. Holders,
dividends may be taxed at the lower capital gains rate applicable to “qualified dividend income,” provided that (1) the ADSs or Ordinary Shares, as applicable, are readily tradable on an established securities market in the United
States or we are eligible for the benefits of a qualifying income tax treaty with the United States, (2) we are neither a PFIC nor treated as such with respect to you (as discussed below) for the taxable year in which the dividend is paid or
the preceding taxable year, (3) the ADSs or Ordinary Shares, as applicable, are held for a holding period of more than 60 days during the 121-day period beginning 60 days before the ex-dividend date and (4) the U.S. Holder satisfies certain other requirements. Ordinary Shares or ADSs, as applicable, will generally be considered for the purpose of clause (1) above to be readily
tradable on an established securities market in the United States if they are listed on Nasdaq, as our ADSs (but not our Ordinary Shares) currently are. If we are treated as a “resident enterprise” for PRC tax purposes (see “Material
Tax Considerations—People’s Republic of China Taxation”), we may be eligible for the benefits of the income tax treaty between the United States and the PRC (the “Treaty”). You