Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 1

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 1
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become worthless. According to the Foreign Investment Law in China, the State Council shall promulgate or approve a list of special administrative
measures for market access of foreign investments, or the Negative List. The Foreign Investment Law grants national treatment to foreign-invested entities,
except for those foreign-invested entities that operate in industries specified as either “restricted” or “prohibited”
from foreign investment in the Negative List. The Foreign Investment Law provides that foreign-invested entities operating in “restricted”
or “prohibited” industries will require market entry clearance and other permissions or approvals from relevant PRC government
authorities. On September 6, 2024, the National Development and Reform Commission of China (“NDRC”) and the Ministry of Commerce
(“MOFCOM”) jointly issued the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition),
effective November 1, 2024. As a company operating its business in auto service, auto eInsurance service and technology service, which
are not included in the 2024 Negative List, SunCar believes its business is not subject to any ownership restrictions. However, since
the Negative List has been adjusted and updated almost on an annual basis in the recent years, we cannot assure you that the aforementioned
business segments will continuously be beyond the “prohibited” category, which would likely result in a material change in
our operations or in the value of our securities. The PRC government will also establish a foreign investment information reporting system,
according to which foreign investors or foreign-invested enterprises shall submit investment information to the competent department for
commerce concerned through the enterprise registration system and the enterprise credit information publicity system, and a security review
system under which the security review shall be conducted for foreign investment affecting or likely affecting the state security. For
a detailed description of risks related to doing business in China, see “Risk Factors — Risk Factors Relating to Doing Business in China” in our most recent Annual Report on Form 20-F, incorporated herein by reference.

SunCar may encounter several limitations related
to cash transfer among its PRC Operating Entities, the holding company and its investors. Any funds we transfer to the PRC Operating Entities,
either as a shareholder loan or as an increase in registered capital, are subject to permission and approval by or registration with relevant
governmental authorities in China. According to the relevant PRC regulations on foreign invested enterprises in China, capital contributions
to our PRC Operating Entities are subject to