Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 47

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 47
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 be required to perform annual
data security assessment either by itself or retaining a third-party data security service provider and submit such data security assessment
report to the local agency if we provide personal information overseas or are treated as data processor for important data as Draft Regulations
on Network Data Security applying to the data process activities by the utilization of the network, as well as the supervision and administration
of cybersecurity in PRC. Upon the effectiveness of the Draft Regulations on Network Data Security, we may have to retain a third-party
data security service provider to conduct annual data security assessment, which may incur additional cost to the operations of our PRC
Operating Entities. We cannot guarantee that our PRC Operating Entities will be able to timely submit such annual data security assessment
report as needed, which may be subject to fines or penalties.

As of the date of this Report,
our PRC Operating Entities have obtained all the requisite permissions and approvals required for our operations under the relevant PRC
laws and regulations in the PRC. In the event that the applicable laws, regulations or interpretations change such that we are subject
to any mandatory cybersecurity review and other specific actions required by the CAC, we cannot guarantee whether we can complete the
process in a timely manner, or at all. If we inadvertently conclude that such permission or approval is not required, fail to obtain and
maintain such permissions or approvals, licenses or permits required for our business or respond to changes in the regulatory environment,
we could be subject to liabilities, penalties and operational disruption, which may materially and adversely affect our business, operating
results, financial condition and the value of our ordinary shares, significantly limit or completely hinder our ability to offer or continue
to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

The M& A Rules and certain other PRC
regulations may make it more difficult for us to pursue growth through acquisitions.

The Regulations on Mergers
and Acquisitions of Domestic Companies by Foreign Investors, or the M& A Rules, adopted by six PRC regulatory agencies in 2006 and
amended in 2009, and some other regulations and rules concerning mergers and acquisitions established complex procedures and requirements
for some acquisitions of Chinese companies by foreign investors, including requirements in some instances that the Ministry of Commerce
of the PRC (“ MOFCOM”), be notified in advance of any change-of-control transaction in which a foreign investor takes control
of a PRC domestic enterprise. Moreover, the Anti-Monopoly