Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 5

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 5
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 the PCAOB Board voted to vacate previous determinations to the contrary. Should the PCAOB again encounter impediments to inspections
and investigations in mainland China or Hong Kong as a result of positions taken by any authority in either jurisdiction, including by
the CSRC or the MOF, the PCAOB will make determinations under the HFCAA as and when appropriate. We cannot assure you whether Nasdaq or
regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor’s
audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach, or
experience as it relates to the audit of our financial statements. There is a risk that the PCAOB is unable to inspect or investigate
completely the Company’s auditor because of a position taken by an authority in a foreign jurisdiction or any other reasons, and
that the PCAOB may re-evaluate its determinations as a result of any obstruction with the implementation of the Protocol. Such lack of
inspection or re-evaluation could cause trading in the Company’s securities to be prohibited under the HFCAA and ultimately result
in a determination by a securities exchange to delist the Company’s securities. In addition, under the HFCAA, as amended by the
AHFCAA, our securities may be prohibited from trading on the Nasdaq or other U.S. stock exchanges if our auditor is not inspected by the
PCAOB for two consecutive years, and this ultimately could result in our Ordinary Shares being delisted by the Nasdaq.

The structure of cash flows within our organization
and a summary of the applicable regulations are as follows: Our equity structure is a direct holding structure. ASGL (as defined below),
direct and wholly owned subsidiary of SunCar, controls Haiyan Trading (Shanghai) Co., Ltd (“Haiyan Trading”, or the “WFOE”)
and other domestic operating entities through the Hong Kong company, Auto Market Group Ltd. (“Auto Market HK”). Within our
direct holding structure, the cross-border transfer of funds within our corporate group is legal and compliant with the current laws and
regulations of the PRC. After any non-PRC based investors’ funds enter SunCar at SunCar’s securities offerings outside of
China, the funds can be directly transferred to Auto Market HK, and then transferred to subordinate operating entities through the WFOE
in accordance with relevant laws and regulations of the PRC. To the extent cash in the business is in the