Company: CAAS
Filing Date: 2025-07-01
Form Type: F-4
Source: 0001104659-25-064447
Chunk: 89

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-01
Form: F-4
Chunk 89
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 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 Exchange Administration over Round-Trip
Investment regarding the procedures for SAFE registration under SAFE Circular 37, which became effective on July 4, 2014, as an attachment
of SAFE Circular 37.

Under the relevant rules, failure to comply with
the registration procedures set forth in SAFE Circular 37 may result in bans on the foreign exchange activities of the relevant onshore
company, including the payment of dividends and other distributions to its offshore parent or affiliates, and may also subject relevant
PRC residents to penalties under PRC foreign exchange administration regulations.

Regulation on Stock Incentive Plans

On February 15, 2012, the SAFE promulgated
the Notice on Foreign Exchange Administration of PRC Residents Participating in Share Incentive Plans of Offshore Listed Companies, or
the Stock Option Rules, replacing the previous rules issued by SAFE in March 2007. Under the Stock Option Rules and other
relevant rules and regulations, domestic individuals, which means the PRC residents and non-PRC citizens residing in China for a
continuous period of not less than one year, subject to a few exceptions, who participate in a stock incentive plan in an overseas publicly-listed
company are required to register with SAFE or its local branches and complete certain other procedures.

Participants of a stock incentive plan who are
PRC residents must retain a qualified PRC agent, which could be a PRC subsidiary of the overseas publicly-listed company or another qualified
institution selected by the PRC subsidiary, to conduct the SAFE registration and other procedures with respect to the stock incentive
plan on behalf of its participants. The participants must also retain an overseas entrusted institution to handle matters in connection
with their exercise of stock options, the purchase and sale of 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