Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 7

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 7
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. Current PRC regulations permit our PRC subsidiaries to pay dividends
to their respective shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards
and regulations. In addition, each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, if
any, to fund a statutory reserve until such reserve reaches 50% of each of their registered capitals. These reserves are not distributable
In addition, PRC Operating Entities cannot distribute dividends until previous years’ loss has been offset.

To address persistent capital outflows and the
RMB’s depreciation against the U.S. dollar in the fourth quarter of 2016, the People’s Bank of China and the State Administration
of Foreign Exchange, or SAFE, have implemented a series of capital control measures, including stricter vetting procedures for China-based
companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments. The PRC government may
continue to strengthen its capital controls and our PRC subsidiaries’ dividends and other distributions may be subject to tightened
scrutiny in the future. The PRC government also imposes controls on the conversion of RMB into foreign currencies and the remittance of
currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and
remit foreign currency for the payment of dividends from our profits, if any. Furthermore, if our subsidiaries in the PRC incur debt on
their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments.

Investing in our securities involves a high degree of risk. See the “ Risk Factors” section on page S-8 of this prospectus supplement, in any accompanying prospectus supplement or in the documents incorporated by reference into this prospectus supplement before making a decision to invest in our securities.

Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities or determined if this prospectus supplement is accurate or adequate. Any representation to the contrary is a criminal offense.

|                                           |     | Per share |      |     | Total |            |
|:------------------------------------------|:----|:----------|-----:|:----|:------|-----------:|
| Public offering price                     |     | $         | 7.00 |     | $     | 50,000,000 |
| Underwriting discounts and commissions(1) |     |