Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 60

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 60
---
OB may not be able to inspect
or investigate completely such audit documentation and, as such, you may be deprived of the benefits of such inspection and our ordinary
share could be delisted from the stock exchange pursuant to the HFCAA.

On May 20, 2020, the U. S.
Senate passed the Holding Foreign Companies Accountable Act (the “ HFCAA”) requiring a foreign company to certify it is not
owned or controlled by a foreign government if the PCAOB is unable to audit specified reports because the Company uses a foreign auditor
not subject to PCAOB inspection. If the PCAOB is unable to inspect the Company’s auditors for three consecutive years, the issuer’s
securities are prohibited to trade on a national securities exchange or in the over the counter trading market in the U. S. On December
18, 2020, the HFCAA was signed into law.

On June 22, 2021, the U. S.
Senate passed the Accelerating Holding Foreign Companies Accountable Act (“ AHFCAA”), which reduced the period for foreign
companies to comply with PCAOB audits from three to two consecutive years. On December 29, 2022, the Consolidated Appropriations Act,
2023 was signed into law, which officially reduced the number of consecutive non-inspection years required for triggering the prohibitions
under the HFCAA from three years to two.

On December 16, 2021, PCAOB
announced HFCAA determinations relating to its inability to inspect or investigate completely registered public accounting firms headquartered
in mainland China or Hong Kong because of positions taken by authorities in the PRC or Hong Kong. The inability of the PCAOB to conduct
inspections of auditors in China made it more difficult to evaluate the effectiveness of these accounting firms’ audit procedures
compared to auditors subject to PCAOB inspections.

On August 26, 2022, the PCAOB
signed a Statement of Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the People’s Republic
of China. On December 15, 2022, the PCAOB announced in its 2022 HFCAA Determination Report that it was able to secure complete access
to inspect and investigate audit firms in the PRC, and vacated previous determinations to the contrary. The PCAOB may reassess its determinations
and issue new determinations consistent with the HFCAA at any time.

On December 15, 2022, the
PCAOB announced in