Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 11

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 11
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 through our operating entities in China. Our revenue and
net profit increased continually. However, our historical performance may not be indicative of our future growth or financial results.
We cannot assure you that we will be able to deliver similar growth or avoid any decline in the future. Our growth may slow down and our
revenue and net profit may decline for a number of possible reasons, including the risk factors set forth in this Report. Some of the
risks are beyond our control, including declining growth of our overall market or industry, increasing competition, the emergence of alternative
business models, decreasing customer base, changes in rules, regulations, government policies or general economic conditions, and we may
encounter unforeseen expenses, difficulties, complications, delays and other unknown factors. You should consider our business and prospects
in light of these risks, and not unduly rely on our past results of operations or historical growth rate as an indicator of our future
performance.

If we fail to maintain cordial relationships
with our business partners, our business, results of operations, financial condition and business prospects could be materially and adversely
affected.

We are a company working as
an intermediary in auto services and insurance. Therefore, we depend on our auto service providers and insurance companies partners to
provide services to our customers and the end customers. Our success depends on our ability to, among other things, develop and maintain
relationships with our existing business partners and attract new business partners.

Our auto services business and auto eInsurance
business largely depend on our relationships with our customers. If we cannot maintain good relationships or provide satisfactory services
to them, we may lose some of our business.

For our auto services business,
our enterprise customers are our direct customers, mainly consisting of banks, insurance companies and other large corporations. We secure
service contracts with a substantial number of our enterprise customers through a bidding or centralized procurement process. These contracts
generally have a term of one or two years which, upon expiry, we are typically subject to a new round of bidding or centralized procurement
process to be awarded a renewed contract. We cannot assure you that we will always be invited to participate in the bidding or procurement
process of our existing customers upon expiry of our existing contract terms or potential customers that we strive to establish business
relationship with, or that we would be able to succeed in the bidding or procurement processes or maintain comparable success rates in
the future. Furthermore, our cooperation with our enterprise customers is subject to their annual budget constraints, which could indirectly
affect