Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 13

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 13
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we collaborate with various external referral sources to expedite our market penetration and broaden our end consumer base. Our external
referral sources are our service providers in the auto eInsurance business. Failure to establish and maintain cordial relationships with
our external referral sources may materially and adversely affect our ability to expand our business scale and geographical coverage,
which in turn could adversely affect our results of operations and business prospects.

In addition, our contracts
with our customers and service providers are typically on a non-exclusive basis, and they may choose to cooperate with our competitors
or offer competing services themselves. For example, there is an increasing trend that major insurance companies build their own Internet
or mobile channels and strengthen their in-house capabilities to distribute their insurance products, as well as establishing their own
auto eInsurance arms. Our auto service providers may also choose to work with our competitors or other service platforms, which may offer
better terms or bring upon more business volume to them. In any event, there is no assurance that we will be able to continuously maintain
positive relationships with our business partners, or continue to work with them on terms favorable to us, or at all. If any of the foregoing
occurs, our business growth, results of operations and financial condition will be adversely affected.

Moreover, our auto service
providers depend upon frequent use of auto parts, products, and supplies to perform the services they provide for us. Shortages or interruptions
in the supply chain caused by unexpected demand, problems in production or distribution, acts of terrorism, financial or other difficulties
of suppliers, labor issues, inclement weather, natural disasters such as floods, drought and hurricanes, outbreak of armed conflicts or
disease, such as COVID-19, or other conditions could adversely affect the availability, quality and cost of supplies for such products,
which could materially and adversely affect the businesses of our auto service providers and us. Recent global supply chain disruptions
have had minimal direct impacts on our operations, because our business is digitalized and require very little continuous supply of physical
materials. Moreover, the labor supply of our auto service providers have been affected only minimally, since we source these providers
in China locally, close to the locations of our customers service requests. For examples, Russia, Ukraine, and the United States have
no nexus to our supply chains, so events happening in these locations have minimal effect on our supply chain management or risks.

Global inflationary pressures could negatively impact our results
of operations and cash flows.

We face two types of possible