Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 68

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 68
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 Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2021 Edition), effective
January 1, 2022. As a company operating its business in auto service, auto eInsurance service and technology service, which are not included
in the 2021 Negative List, SunCar believes its business is not subject to any ownership restrictions. However, since the Negative List
has been adjusted and updated almost on an annual basis in the recent years, we cannot assure you that the aforementioned business segments
will continuously be beyond the “prohibited” category, which would likely result in a material change in our operations or
in the value of our securities. The PRC government will also establish a foreign investment information reporting system, according to
which foreign investors or foreign-invested enterprises shall submit investment information to the competent department for commerce concerned
through the enterprise registration system and the enterprise credit information publicity system, and a security review system under
which the security review shall be conducted for foreign investment affecting or likely affecting the state security. For a detailed description
of risks related to doing business in China, see “Risk Factors — Risk Factors Relating to Doing Business in China”
in our most recent Annual Report on Form 20-F, incorporated herein by reference.

SunCar may encounter several limitations related
to cash transfer among its PRC Operating Entities, the holding company and its investors. Any funds we transfer to the PRC Operating Entities,
either as a shareholder loan or as an increase in registered capital, are subject to permission and approval by or registration with relevant
governmental authorities in China. According to the relevant PRC regulations on foreign invested enterprises in China, capital contributions
to our PRC Operating Entities are subject to the registration with the State Administration for Market Regulation or its local counterpart
and registration with a local bank authorized by SAFE. In addition, (i) any foreign loan procured by our PRC Operating Entities is required
to be registered with the SAFE or its local branches and (ii) any of our PRC Operating Entities may not procure loans which exceed the
difference between its total investment amount and registered capital or, as an alternative, only procure loans subject to the calculation
approach and limitation as provided by the People’s Bank of China. As a holding company with no operations, our ability to distribute
dividends largely depends on the distribution from our PRC Operating Entities. In addition, if SunCar is determined to be a PRC resident
enterprise for enterprise income tax purposes,