Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 46

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 46
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 government authorities.

It remains uncertain as to
how the existing regulatory measures will be interpreted or implemented in the future, and whether the PRC authorities may adopt new laws
or regulations which may impose additional restrictions on companies like us. If the PRC government authorities stipulate new rules which
mandate China-based companies listed on a U. S. stock exchange, such as us, to conduct cybersecurity review or obtain additional approvals,
we face uncertainties as to whether such clearance or approvals can be timely obtained, or at all. If we are not able to comply with the
cybersecurity and data privacy requirements, we may be subject to government enforcement actions, fines, penalties, or suspension of operations,
which could materially and adversely affect our business and results of operations.

On February 22, 2023, CAC
issued the Measures for the Standard Contract for Cross-Border Transfer of Personal Information. If our PRC operating entities failed
to comply with such measures, they may face legal liability under the PRC Personal Information Protection Law, including fines of up to
RMB50 million or 5% of annual revenues and may be ordered to suspend related activities or have business licenses revoked.

On March 22, 2024, CAC issued
the Provisions on Regulating and Promoting Cross-Border Data Flows with immediate effect. Failure to comply with the relevant laws and
regulations in relation to cross-border transfer of personal information may subject us and our PRC operating entities to legal liabilities
and may materially and adversely affect our business, financial condition and results of operations.

Many data privacy laws in
China are relatively new with evolving interpretations. The Cybersecurity Review Measures and Draft Regulations on Network Data Security
create uncertainty for U. S.-listed companies like us. If these regulations require additional cybersecurity reviews or specific compliance
actions, we may face challenges completing these procedures in a timely manner, potentially subjecting us to enforcement actions, penalties,
operational disruptions, or app removal. Compliance with existing and future PRC cybersecurity regulations may increase our expenses and
damage our reputation if not managed properly. Given the evolving regulatory landscape, we cannot guarantee full compliance at all times
or that our current protection systems will be deemed sufficient. Non-compliance could result in warnings, fines, investigations, license
revocations, website closures, app removals, securities price drops, or even criminal liability.

Based on the understanding
of the Company’s legal department, if it is adopted into law, our PRC Operating Entities likely will