Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 113

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 113
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 from 2018 through 2021, and
successfully renewed the qualification in December 2021, which would be effective within 3 years. Shengda Automobile, one of our key subsidiaries,
qualified as a “new high-tech enterprise” and was entitled to a preferential tax rate of 15% from 2018 through 2021, and successfully
renewed the qualification in December 2021, which would be effective within 3 years.

Dividends paid by its wholly
foreign-owned subsidiaries in China to its intermediary holding companies in Hong Kong will be subject to a withholding tax rate of 10%,
unless they qualify for a special exemption. If its intermediary holding companies in Hong Kong satisfy all the requirements under the
Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion
on Income and receive approval from the relevant tax authority, then dividends paid to them by its wholly foreign-owned subsidiaries in
China will be subject to a withholding tax rate of 5% instead.

If our holding company in
the Cayman Islands or any of its subsidiaries outside of China were deemed to be a “resident enterprise” under the Enterprise
Income Tax Law, it would be subject to enterprise income tax on its worldwide income at a rate of 25%.

Liquidity and Capital Resources

                                                                                    For the years ended December 31,                                                             
                                                                                    2022                                               2023                   2024               
                                                                                    (in thousands)                                                                               
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash (used in) provided by operating activities of continuing operations      $                                     (16,092      $         (27,651      $          11,841  
  Net cash used in operating activities of discontinued operations                                                            (52                      -                      -  
  Net cash used in investing activities of continuing operations                                                           (5,402                 (2,394                (12,147  
  Net cash used in investing activities of discontinued operations                                                           (517                      -                      -  
  Net cash provided by (used in) financing activities of continuing operations                                             10,636                 40,434                 (2,951  
  Effect of exchange rate changes                                                                                          (2,573                   (711                   (826  
  Net (decrease) increase in cash and restricted cash                               $                                     (14,000      $           9,678      $          (4