Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 109

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 109
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5 million for the year
ended December 31, 2023. The increase in promotional service expenses was in line with the increase of revenue in our auto eInsurance
service and auto service.

Selling expenses. Selling
expenses increased by 25% from US$16.5 million for the year ended December 31, 2022 to US$20.6 million for the year ended December 31,
2023, primarily due to (i) an increase in promotion expense of US$1.1 million for market expansion after the public listing; and (ii)
an increase in compensation of US$2.9 million for part-time sales personnels the number of service centers nationwide increased.

General and administrative
expenses. General and administrative expenses decreased by 40% from US$37.7 million for the year ended December 31, 2022 to US$22.5
million for the year ended December 31, 2023, primarily due to the decrease of bad debt expense of US$30.1 million for the year ended
December 31, 2023 since the adoption of ASC326, offset by (i) the increase of professional service expense of US$4.7 million due to the
public listing, and (ii) the increase of share-based compensation expense related to Earnout Shares of US$9.7 million.

Research and development
expenses. Research and development expenses increased by 66% from US$8.5 million for the year ended December 31, 2022 to US$14.1 million
for year ended December 31, 2023, primarily due to more research expenditures on the software used in the auto eInsurance service and
technology service businesses.

Net loss and Adjusted EBITDA. Net loss increased by $5.7 million, to $17.6 million for the year ended December 31, 2023. Adjusted EBITDA increased by US$7.2 million,
to US$1.6 million in year ended December 31, 2023. See our reconciliation of Net loss to Adjusted EBITDA within the section titled “ Non-GAAP
Financial Measures.”

Discontinued operations

On March 1, 2022, we entered
into a share purchase agreement with Jiachen Information Technology (Shanghai) Co., Ltd. (“ Jiachen”), an affiliate of Mr.
Ye Zaichang, to transfer the total equity of Shengda Group at a nominal consideration of RMB