Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 22

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 22
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Our continued success depends
on our ability to attract and retain an experienced management team and other employees with the requisite expertise and skills. Our ability
to do so is influenced by a variety of factors, including the structure of the compensation package that we formulate and the competitive
market position of our overall compensation package. Our management team and skilled employees may leave us or we may terminate their
employment at any time. We cannot assure you that we will be able to retain our management team and skilled employees or find suitable
or comparable replacements on a timely basis. Moreover, if any of our management team or skilled employees leaves us or joins a competitor,
we may lose customers. In addition, former employees may request certain compensation arising from their resignation or retirement, which
we typically negotiate on a case-by-case basis. However, if we are unable to reach a mutually acceptable resolution with such employees,
they may take other actions including, but not limited to, initiating legal proceedings. Such legal proceedings may require us to pay
damages, divert our management’s attention cause us to incur costs and harm our reputation. In particular, our business operations
and development crucially depend on key persons, including our Chairman and CEO Mr. Ye Zaichang and our CTO Mr. Lei Zhunfu, the loss or
departure of whom would materially impact our business. Each of these foregoing factors could have a material adverse effect on our business,
financial condition and results of operations.

If we are unable to manage our growth or
execute our strategies effectively, our business and prospects may be materially and adversely affected.

Our business has grown substantially
since our inception, and we expect continued growth in the scale of our business and our operations. We have significantly expanded branch
establishment, our headcount and office facilities, and we anticipate further expansion in certain areas and geographies. This expansion
increases the complexity of our operations and may cause strain on our managerial, operational and financial resources. We must continue
to hire, train and effectively manage new employees. If our new hires perform poorly or if we are unsuccessful in hiring, training, managing
and integrating new employees, our business, financial condition and results of operations may be materially harmed.

In addition, as we pursue
our business growth and strive to expand our customer base, we endeavor to establish presence in new geographical markets, introduce new
insurance products and types of auto services, and work with a variety of additional business partners, including banks, insurance companies,
external referral sources and auto service providers, to address