Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 48

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 48
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 Law promulgated by the Standing Committee of the PRC National People’s
Congress, which became effective in 2008 requires that transactions which are deemed concentrations and involve parties with specified
turnover thresholds must be cleared by MOFCOM before they can be completed. In addition, the security review rules issued by MOFCOM that
became effective in September 2011 specify that mergers and acquisitions by foreign investors that raise “national defense and security”
concerns and mergers and acquisitions through which foreign investors may acquire de facto control over domestic enterprises that raise
“national security” concerns are subject to strict review by MOFCOM, and the rules prohibit any activities attempting to bypass
a security review, including by structuring the transaction through a proxy or contractual control arrangement. On December 19, 2020,
the Measures for the Security Review for Foreign Investment was jointly issued by National Development and Reform Commission (“ NDRC”)
and MOFCOM and took effect from January 18, 2021. The Measures for the Security Review for Foreign Investment specified provisions concerning
the security review mechanism on foreign investment, including the types of investments subject to review, review scopes and procedures,
among others.

In the future, we may pursue
potential strategic acquisitions that are complementary to our business and operations. Complying with the requirements of the above-mentioned
regulations and other relevant rules to complete such transactions could be time-consuming, and any required approval processes, including
obtaining approval or clearance from MOFCOM or its local counterparts or other relevant governmental authorities, may delay or inhibit
our ability to complete such transactions, which could affect our ability to expand our business or maintain our market share.

The permission or approval of, or filing
to, the China Securities Regulatory Commission may be required in future offerings or financings, and, if required, we cannot predict
whether we will be able to obtain such permission or approval, or timely clear the filing requirements.

The M& A Rules require
overseas special purpose vehicles controlled by PRC companies or individuals formed for the purpose of seeking a public listing on an
overseas stock exchange through acquisitions of PRC domestic interests using shares of such special purpose vehicles or held by its shareholders
as considerations to obtain the permission or approval of the China Securities Regulatory Commission, or the CSRC, prior to the listing
and trading of such special purpose vehicle’s securities on an overseas stock exchange. SunCar’s legal department, based on
its understanding of the current