Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 90

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 90
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 corresponding stocks or interests and fund transfers. In addition, the
PRC agent is required to amend the SAFE registration with respect to the stock incentive plan if there is any material change to the stock
incentive plan, the PRC agent or the overseas entrusted institution or other material changes. The PRC agents must, on behalf of the PRC
residents who have the right to exercise the employee share options, apply to SAFE or its local branches for an annual quota for the payment
of foreign currencies in connection with the PRC residents’ exercise of the employee share options. The foreign exchange proceeds
received by the PRC residents from the sale of shares under the stock incentive plans granted and dividends distributed by the overseas
listed companies must be remitted into the bank accounts in the PRC opened by the PRC agents before distribution to such PRC residents.

Regulations on Dividend Distributions

The principal laws and regulations regulating the
distribution of dividends by FIEs in China include the PRC Company Law, as amended in 2004, 2005, 2013, 2018 and 2024, and the 2019 PRC
Foreign Investment Law and its Implementation Rules. Under the current regulatory regime in China, FIEs in China may pay dividends only
out of their retained earnings, if any, determined in accordance with PRC accounting standards and regulations. A PRC company is required
to set aside as statutory reserve funds at least 10% of its after-tax profit, until the cumulative amount of such reserve funds
reaches 50% of its registered capital unless laws regarding foreign investment provide otherwise. A PRC company cannot distribute any
profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together
with distributable profits from the current fiscal year.

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Regulations on Taxation

Enterprise Income Tax

On March 16, 2007, the National People’s
Congress promulgated the PRC EIT Law, which was amended on February 24, 2017, and December 29, 2018. On December 6, 2007,
the State Council enacted the Regulations for the Implementation of the EIT Law, which became effective on January 1, 2008 and was
amended on April 23, 2019. Under the EIT Law and the relevant implementing regulations, both resident enterprises and non-resident enterprises
are