Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 38

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 38
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 our Cayman Islands holding company and
who are known to us as being PRC residents to complete the foreign exchange registrations. However, we may not be informed of the identities
of all the PRC residents or entities holding direct or indirect interest in our company, nor can we compel our beneficial owners to comply
with SAFE registration requirements. We cannot assure you that all other shareholders or beneficial owners of ours who are PRC residents
or entities have complied with, and will in the future make, obtain or update any applicable registrations or approvals required by, SAFE
regulations. Failure by such shareholders or beneficial owners to comply with SAFE regulations, or failure by us to amend the foreign
exchange registrations of our PRC Operating Entities, could subject us to fines or legal sanctions, restrict our overseas or cross-border
investment activities, and limit our PRC Operating Entities’ ability to make distributions or pay dividends to us or affect our
ownership structure, which could adversely affect our business and prospects.

Furthermore, as these foreign
exchange and outbound investment related regulations are relatively new and their interpretation and implementation has been constantly
evolving, it is unclear how these regulations, and any future regulation concerning offshore or cross-border investments and transactions,
will be interpreted, amended and implemented by the relevant government authorities. For example, we may be subject to a more stringent
review and approval process with respect to our foreign exchange activities, such as remittance of dividends and foreign-currency-denominated
borrowings, which may adversely affect our financial condition and results of operations. We cannot assure you that we have complied or
will be able to comply with all applicable foreign exchange and outbound investment related regulations. In addition, if we decide to
acquire a PRC domestic company, we cannot assure you that we or the owners of such company, as the case may be, will be able to obtain
the necessary approvals or complete the necessary filings and registrations required by the foreign exchange regulations. This may restrict
our ability to implement our acquisition strategy and could adversely affect our business and prospects.

In light of the various requirements
imposed by PRC regulations on loans to, and direct investment in, PRC entities by offshore holding companies, we cannot assure you that
we will be able to complete the necessary government registrations or obtain the necessary government permissions or approvals on a timely
basis, if at all, with respect to future loans to the PRC Operating Entities or future capital contributions by us to our PRC Operating
Entities. If we fail to complete such registrations or