Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 35

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 35
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 shortages of capacity increased premium levels. Since the fluctuation of insurance premiums
are periodic and are now set at a very low level, therefore, SunCar anticipates the auto eInsurance services to be profitable again after
such period. However, there is no guarantee that SunCar’s estimation is correct, or the CBIRC will raise the set rate, if the CBIRC
does not raise the premium rate, or such a low-level period prolonged, auto eInsurance service business may negatively impact SunCar’s
ability to generate profit and indirectly influence the price of our Ordinary Shares.

The Chinese EV market is experiencing
rapid growth, supported by government policies encouraging EV manufacturing and purchases. SunCar plans to partner directly with OEMs
for higher margins and develop customized EV insurance products. However, as an insurance intermediary rather than provider, we face challenges
including: limited control over product release timing, potentially expensive development processes, possible commission reductions, regulatory
approval uncertainties, and the risk that customer demand may change during development. If our product development efforts fail to yield
competitive offerings despite significant resource investment, our business growth and financial results could be adversely affected.

Risks Related to Doing Business in China

China’s economic, political and social
conditions, as well as regulatory policies, significantly affect the overall economic growth of China, which could reduce the demand for
our services, and materially and adversely affect our competitive position.

We are a holding company and
all of our operating entities are incorporated and operated in China. Accordingly, our financial condition and results of operations are
subject to the economic, political and legal developments in China. China’s economy differs from the economies of developed countries
in many respects, including the amount of government involvement, level of development, growth rate, control of foreign exchange and allocation
of resources. While China’s economy has experienced significant growth in the past few decades, growth has been uneven across different
regions and economic sectors and we cannot assure you that such growth is sustainable, especially under the current COVID-19 Pandemic.
The PRC government has implemented various measures to encourage economic development and guide the allocation of resources. Some of these
measures benefit the overall PRC economy, but may negatively affect us. For example, our business, financial condition and results of
operations may be adversely affected by the following factors:

  an economic downturn in China or any regional market in China;                        
  inaccurate assessment of the economic conditions of the markets in which we operate;  
  economic policies and initiatives undertaken by the PRC