Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 124

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 124
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 channel partners.

Integration and Consolidation
in the Value Chain

As the profit margin of the
market is comparatively low, certain integrated auto service providers opt to establish their service networks by integrating the scattered
and independent offline service providers, which allows them to expand their geographical reach and service scope in a cost-effective
way, and promotes resource integration along the value chain. This results in a win-win partnership between online platforms and offline
service providers. In the future, this model is expected to be widely-adopted and the consolidation will increase, with leading players
acquiring or engaging more service providers to expand the reach of their network across the country.

More Innovation in the
Online-to-Offline Business Mode

Attracted by the market potential,
many auto service providers have developed their online-to-offline service platforms to deliver auto services. However, the homogeneous
business model, low consumer loyalty and lack of competitive advantages are of great concern to integrated auto service providers. Developing
more innovative business models to optimize the resources online and offline have become one of the priorities for current players and
new entrants to capture the opportunities in the current market as well as the high-potential EV market, among the increasingly intensified
competition.

BUSINESS OF SUNCAR

Overview

We are a leading provider
of cloud and mobile app-based auto eInsurance services, technology services, and auto services in China. For the years ended December
31, 2024 and 2023, we generated revenue of $441.9 million and $363.7, respectively. Building on our leading position in both of these
segments and the synergies between them, we offer one-stop, fully digitalized, on-demand auto service systems to help our enterprise customers
build up their customer base and serve their end customers.

Since our inception in 2007,
we have amassed ample experience in perceiving and serving the expanding needs of China’s automobile owners. Rising with the increasing
prevalence of the mobile internet in China, we introduced online apps for our insurance and auto business in 2014 and 2015, respectively.
We have built comprehensive digital systems for both of our auto service and our auto eInsurance business segments, centered on our multi-tenant,
cloud-based platform which empowers our customers and service providers to optimally access and manage the types of services and insurance
they desire.

For our auto eInsurance business,
we facilitate the sale of auto insurance products underwritten by major insurance companies in China. We receive commissions from these