Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 106

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 106
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 year ended December
31, 2024. The increase was driven by the increase of service orders in 2024. The extensive service network we developed was able to serve
more enterprise customers and complete more auto services in 2024.

Operating costs and expenses. Operating costs and expenses increased by 32% from US$379.2 million for the year ended December 31, 2023 to US$500.3 million for the year
ended December 31, 2024.

Integrated service cost. Integrated service cost increased by 8% from US$209.6 million for the year ended December 31, 2023 to US$226.2 million for the year ended
December 31, 2024. The increase of integrated service costs was in line with the increase of revenue in our technology service and the
significant increase in auto service revenue.

Promotional service expenses.
Promotional service expenses increased by 46% from US$112.5 million for the year ended December 31, 2023 to US$164.3 million for the year
ended December 31, 2024. The increase in promotional service expenses was in line with the increase of revenue in our auto eInsurance
service.

Selling expenses. Selling
expenses increased by 10% from US$20.6 million for the year ended December 31, 2023 to US$22.6 million for the year ended December 31,
2024, primarily due to an increase in promotional expense of US$5.3 million for market expansion and partially offset by decrease of US$2.3
million for compensation for part-time sales personnel and decrease of $1.2 million for depreciation of fixed assets.

General and administrative
expenses. General and administrative expenses increased by 109% from US$22.5 million for the year ended December 31, 2023 to US$47.0
million for the year ended December 31, 2024, primarily due to the increase of share-based compensation expense related to2024
Equity Incentive Planof US$31.0 million and US$5.4 million credit losses, and partially offset by the decrease of earnout payment
of US$9.8 million and US$3.0 consulting fees.

Research and development
expenses. Research and development expenses increased by 185% from US$14.1 million for the year ended December 31, 2023 to US$40.2
million