Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 67

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 67
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US$467.7 million, which was calculated based on 54,009,825 Ordinary Shares outstanding held by non-affiliates and a per share closing
price of US$8.66 as reported on The Nasdaq Capital Market on such date.

SunCar is not an operating company but a Cayman
Islands holding company with operations primarily conducted by its subsidiaries in China.

SunCar’s PRC Operating Entities (as defined
below) face various legal and operational risks and uncertainties related to doing business in China. For instance, SunCar’s PRC
Operating Entities face risks associated with regulatory approvals on offshore offerings, anti-monopoly regulatory actions, and oversight
on cybersecurity and data privacy, as well as the ability of the Public Company Accounting Oversight Board (United States) (“PCAOB”)
to inspect SunCar’s auditors, which may impact the ability of SunCar’s subsidiaries to conduct certain businesses, accept
foreign investors, or its continuing listing on the Nasdaq. These risks could result in a material adverse change in SunCar’s business
operations and the value of our Class A Ordinary Shares, significantly limit or hinder our ability to offer or continue to offer securities
to investors, or cause such securities to significantly decline in value or become worthless.

SunCar’s corporate structure as a Cayman Islands
holding company with operations primarily conducted by its subsidiaries in China involves unique risks to investors. Chinese regulatory
authorities could disallow this structure, which cause the incapability to continue operation without changing the corporate structure
or switching the business focus. This may in turn cause the value of the securities to significantly decline or even 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 December 27, 2021, 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) (2021 Edition),
and the Special