Company: CAAS
Filing Date: 2025-07-25
Form Type: F-4/A
Source: 0001104659-25-070492
Chunk: 75

Company: China Automotive Systems, Inc.
Filing Date: 2025-07-25
Form: F-4/A
Chunk 75
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 appropriations to certain statutory reserve funds, which are not distributable as cash dividends
except in the event of a solvent liquidation of the companies.

We may rely on dividends and other distributions
on equity paid by our PRC subsidiaries for our cash and financing requirements, including the funds necessary to pay dividends and other
cash distributions to our shareholders or to service any debt we may incur. If any of our PRC subsidiaries incurs debt on its own behalf
in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us. Under PRC
laws and regulations, our PRC subsidiaries may pay dividends only out of their respective accumulated profits as determined in accordance
with PRC accounting standards and regulations. In addition, a wholly foreign-owned enterprise is required to set aside at least 10% of
its accumulated after-tax profits each year, if any, to fund a certain statutory reserve fund, until the aggregate amount of such fund
reaches 50% of its registered capital. At its discretion, a wholly foreign-owned enterprise may allocate a portion of its after-tax profits
based on PRC accounting standards to an enterprise expansion fund, or a staff welfare and bonus fund. Such reserve funds and discretionary
funds cannot be distributed to us as dividends. In addition, registered share capital and capital reserve accounts are also restricted
from withdrawal in the PRC, up to the amount of net assets held in each operating subsidiary. The amounts restricted include the paid-up
capital and the statutory reserve funds of our PRC subsidiaries, totaling RMB 504.7 million, RMB 508.8 million, RMB 514.0 million and
RMB 522.3 million as of December 31, 2021, 2022, 2023, 2023 and 2024, respectively.

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The Company may provide funding to its PRC subsidiaries
by making capital contributions or providing loans.

During the fiscal years ended December 31,
2021, 2022, 2023 and 2024, the Company received loans which were interest free from its subsidiaries in the aggregate amount of $2.5 million,
$6.1 million, $5.8 million and $ 16.9 million, respectively, and no principal was repaid in such years.

Although the Company announced and paid a special
cash dividend of $0.18 per common stock to the Company’s shareholders of record as of the close