Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 103

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 103
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 60      226,456       51  
  Total                        $                                           282,413      100      363,746      100      441,897      100  

Auto eInsurance Service. We provide auto eInsurance service distributing automobile insurance products on behalf of insurance companies. Auto eInsurance services
are considered to be rendered and completed and revenue is recognized at the time an insurance policy becomes effective, i. e. when the
signed insurance policy is in place and the premium is collected from the insured. We recognize revenue when the premiums are collected
by the respective insurance companies, because collectability is not ensured until receipt of the premium. Accordingly, we do not accrue
any commission and fees prior to the receipt of the relevant premiums.

Technology Service. We operate our technology service business by providing technical software and consulting related to automobile services and insurance,
including modular management tools such as customer relationship management, order management, finance management and visual analysis
systems. For the use of our technology services, we charge technology service fees based on fixed prices per service period (usually one
month) for service provided, and recognize revenue over time during the service period.

Auto Service. We provide
customized auto service to enterprises, who ultimately offer them to their end customers. These services include necessary maintenance
as well as regular services such as car wash, oil change, tire repair, car beautification, road assistance, flight pickup, designated
driving, VIP lounge, etc. We charge a service fee either based on the number of service items completed at a fixed price per item, or,
charge for service coupons with a limited duration term, whether or not the services have been performed. We act as the principal supplier
and control the access to the services before providing them to end customers. Therefore, we recognize revenue in the gross amount of
consideration at the point of time when the service is provided, or when the service coupons with limited duration term have expired.

Operating costs and expenses

The following table sets forth
our operating costs and expenses, both in absolute amounts and as a percentage of total revenues, for the years indicated.

                                           For the Year Ended December 31,                                                                           
                                           2022                                                                                                      
                                           (In thousands, except for percentages)                                                                    
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Integrated service cost                  $                                           166,793       59      209,553       58      226