Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 108

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 108
---
 expanded rapidly. Therefore, while the average commission for the year ended December 31, 2023 decreased by 12%
compared with the year of 2022 due to the regulatory requirements and normal market fluctuations, this decrease was offset by the increase
in the number of insurance policies by 108% compared with those for the year ended December 31, 2022.

Technology service. Technology
service revenue increased by US$15.2 million from US$15.5 million for the year ended December 31, 2022 to US$30.7 million for the year
ended December 31, 2023. Technology service is a new business focus of ours starting in 2021 and the revenue increase is due to our continuous
expansion in new business to acquire more market share. The increase is also due to the increasing reliance of our insurance company partners
on our insurance app as their online business develops, which brings more cooperation in the technology service segment. Through the application
of our Private Cloud Platform, we have simplified our development process and we were able to easily integrate various tools for software
development, testing, operation, and maintenance. Together, these strengthened our software platform to be able to increase its capacity
and better serve the customers.

Auto service. Auto service revenue increased by 8% from US$199.3 million for the year ended December 31, 2022 to US$215.0 million for the year ended
December 31, 2023. The increase was driven by the increase of service orders in 2023. The extensive service network we developed served
more enterprise customers and completed more auto service orders in 2023.

Operating costs and expenses. Operating costs and expenses increased by 29% from US$295.0 million for the year ended December 31, 2022 to US$379.2 million for the year
ended December 31, 2023.

Integrated service cost. Integrated service cost increased by 26% from US$166.8 million for the year ended December 31, 2022 to US$209.6 million for the year ended
December 31, 2023. The increase of integrated service costs was in line with the increase in revenue in our technology service business
and significant increase in the auto service business.

Promotional service expenses.
Promotional service expenses increased by 72% from US$65.5 million for the year ended December 31, 2022 to US$112.