Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 44

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 44
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, could materially and adversely affect our business and impede our ability to continue our
operations.

Furthermore, if China adopts
more stringent standards with respect to environmental protection or corporate social responsibilities, we may incur increased compliance
costs or become subject to additional restrictions in our operations. Intellectual property rights and confidentiality protections in
China may also not be as effective as in the United States or other countries. In addition, we cannot predict the effects of future developments
in the PRC legal system on our business operations, including the promulgation of new laws, or changes to existing laws or the interpretation
or enforcement thereof. These uncertainties could limit the legal protections available to us and our investors, including you. Moreover,
any litigation in China may be protracted and result in substantial costs and diversion of our resources and management attention.

The PRC government has significant
oversight and discretion over the conduct of our business and may intervene or influence our operations as the government deems appropriate
to further regulatory, political and societal goals. The PRC government has recently published new policies that significantly affected
certain industries such as the education and internet industries, and we cannot rule out the possibility that it will in the future release
regulations or policies regarding our industry that could adversely affect our business, financial condition and results of operations.
Furthermore, the PRC government has recently indicated an intent to exert more oversight and control over securities offerings and other
capital markets activities that are conducted overseas and foreign investment in China-based companies like us. Any such action, once
taken by the PRC government, could significantly limit or completely hinder our ability to offer or continue to offer securities to investors
and cause the value of such securities to significantly decline or in extreme cases, become worthless.

We may become subject to a variety of laws
and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or
appropriation of personal information.

We may become subject to evolving
PRC laws regarding privacy, data security, cybersecurity, and data protection. The scope, interpretation, and enforcement of these laws
are often uncertain and may vary across jurisdictions.

We collect and maintain information
about our operations, customers, and employees. Protecting this data is critical to our business and required by law. As regulatory focus
on data protection intensifies globally, our compliance costs may increase. Any failure to manage these risks or comply with applicable
regulations could result in penalties, business disruption, license revocation, and