Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 15

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 15
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 revenue could be materially and adversely affected if we lose any significant customer, or if any significant customer
fails to cooperate with us at anticipated levels.

For the year of 2024, we
had three customer accounting for more than 10% of our revenue for a total of 45%, and four customers each accounting for more than 10%
of our accounts receivables for a total of 63%. For the year 2023, there was three customer who accounted for more than 10% of our
revenue for a total of 48%, and four customers each accounting for more than 10% of our accounts receivables for a total of 50%. For
the year 2022, we had two customers each accounting for more than 10% of our revenue for a total of 26%, and four customers each
accounting for more than 10% of our accounts receivables for a total of 70%.

There are a number of factors,
other than our performance, that could cause loss of, or decrease in the volume of business from, a customer. Despite our moderate and
decreasing customer concentration and our record of maintaining customer loyalty, our top customers, especially the insurance companies,
are large state-owned enterprises, who may enjoy significant bargaining power over us, and who may be difficult for us to replace if we
lose them. We cannot assure you that we will continue to maintain the business cooperation with these customers at the same level, or
at all. The loss of business from any of these significant customers, or any downward adjustment of the commission rates paid to us, could
materially adversely affect our revenue and profit. Furthermore, if any significant customer terminates its relationship with us, we cannot
assure you that we will be able to secure an alternative arrangement with comparable insurance company in a timely manner, or at all.

We are subject to credit risks from our
customers.

We typically grant credit
period to our automobile enterprise customers. While they are principally insurance companies and banking institutions, there is no assurance
that income receivable by us will not be subject to disputes with our customers and partners. Given the scale of our customers and the
negotiating positions they enjoy, in case of dispute we are typically in a less favorable position to succeed in recovering the trade
receivables and our financial position and results of operations may be negatively impacted as a result.

Our outstanding accounts receivable
are not covered by collateral or credit insurance. While we have procedures to monitor