Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 114

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 114
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Our principal sources of liquidity
have been cash provided from bank borrowings and revenue generated from business operations. As of December 31, 2024, we had US$26.9 million
in cash, and US$2.6 million restricted cash, of which almost all was denominated in Renminbi. Most of the cash and restricted cash were
held at banks located in China.

We believe that our current
cash on hand, short-term investments, and cash provided by equity securities will be sufficient to meet the current and anticipated needs
for general corporate purposes for at least the next 12 months. We may, however, need additional cash resources in the future if we experience
changes in business conditions or other developments. We may also need additional cash resources in the future if we find and wish to
pursue opportunities for investment, acquisition, capital expenditures, or similar actions. If we determine that the cash requirements
exceed the amount of cash on hand, we may seek to issue equity or equity-linked securities or obtain debt financing. The issuance and
sale of additional equity would result in further dilution to the shareholders. The incurrence of indebtedness would result in increased
fixed obligations and could result in operating covenants that would restrict our operations.

We expect that substantially
all of our future revenues will be denominated in RMB. Under existing PRC foreign exchange regulations, payments of current account items,
including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign
currencies without prior SAFE approval as long as certain routine procedural requirements are fulfilled. Therefore, our PRC subsidiaries
are allowed to pay dividends in foreign currencies to us without prior SAFE approval by following certain routine procedural requirements.
However, approval from or registration with competent government authorities is required where the RMB is to be converted into foreign
currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government
may at its discretion restrict access to foreign currencies for current account transactions in the future.

Operating Activities

Net cash provided by operating
activities of continuing operations for the year ended December 31, 2024 was US$11.8 million, as compared to net loss from continuing
operations of US$64.5 million. The difference between net loss and net cash provided by operating activities was primarily attributable
to (i) a non-cash adjustment of share-based compensation of US$63.5 million