Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 36

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 36
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 government;                   
  changes to prevailing market interest rates;                                          
  decrease in automobile use in China; and                                              
  a higher rate of bankruptcy.                                                          

In addition, an unfavorable
financial or economic environment in recent years, including as a result of continued global financial uncertainties and the rising tension
over trade between China and the U. S., have had and may continue to have an adverse impact on investors’ confidence and financial
markets in China. Moreover, concerns over capital market volatility, issues of liquidity, inflation, geopolitical issues, the availability
and cost of credit and concerns about the rate of unemployment have resulted in adverse market conditions in China, which may materially
and adversely affect our business, financial condition and results of operations.

Changes in the economic, political
and social conditions or the relevant policies of the PRC government, such as changes in laws and regulations (or the interpretation thereof)
or restrictive financial measures, could have an adverse effect on the overall economic growth of the PRC, which could subsequently hinder
our current or future business, growth strategies, financial condition and results of operations.

A severe or prolonged downturn in Chinese
or global economy could materially and adversely affect our business and financial condition.

The Chinese economy faces
ongoing challenges from both domestic and global factors. While recovering from the COVID-19 pandemic, China continues to navigate economic
headwinds including a moderated growth rate since 2010. Global economic uncertainties, including monetary policy shifts in major economies,
geopolitical tensions, and supply chain disruptions affect China's economic outlook. Current conflicts in the Middle East and Eastern
Europe impact global energy markets, which may affect vehicle usage patterns in China and consequently our business. Trade relations between
China and other nations, particularly the United States, remain uncertain with potential implications for regulatory policies, tariffs,
and business operations. These economic conditions in China respond to both global economic trends and domestic policy changes. Any severe
or prolonged economic slowdown, either globally or within China, could materially impact our business performance, operational results,
and financial condition.

PRC regulations relating to investments
in offshore companies by PRC residents may subject our PRC-resident beneficial owners or our PRC Operating Entities to liability or penalties,
limit our ability to inject capital into our PRC Operating Entities or limit the ability of our PRC Operating Entities to increase their
registered capital or distribute profits.

As an offshore holding company
of our PRC subsidiary, SunCar may make loans or make additional capital contributions to our subsidiaries, subject to satisfaction of