Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 69

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 69
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 business, financial condition and results of operations.

After SunCar is no longer
an “emerging growth company,” SunCar may incur significant expenses and devote substantial management effort toward ensuring
compliance with the requirements of Section 404 and the other rules and regulations of the SEC.

Future sales or perceived sales of substantial
amounts of our securities in the public market could have a material adverse effect on the prevailing market price of our Ordinary Shares
and our ability to raise capital in the future, and may result in dilution of your shareholdings.

The market price of our Ordinary
Shares could decline as a result of future sales of substantial amounts of our Ordinary Shares or other securities relating to our Ordinary
Shares in the public market or the issuance of new Ordinary Shares or other securities, or the perception that such sales or issuances
may occur. Future sales, or perceived sales, of substantial amounts of our securities, including any future offerings, could also materially
and adversely affect our ability to raise capital in the future at a time and at a price which we deem appropriate. In addition, our Shareholders
may experience dilution in their holdings to the extent we issue additional securities in future offerings.

We may have conflicts of interest with our
largest shareholder and may not be able to resolve such conflicts on favorable terms for us.

The largest shareholder has
a fair amount of the voting rights of SunCar and substantial influence over our business with respect to material matters requiring voting
rights, and we cannot assure you that any of our controlling shareholders will act in the best interest of our company should any conflict
arise. For example, they may make strategic decisions with respect to us or that affect our business in ways that favor themselves and
therefore their own shareholders, which may not coincide with the interests of our other shareholders. We may not be able to resolve any
potential conflicts, and even if we do so, the resolution may be less favorable to us than if we were dealing with an unaffiliated party.

ITEM 4. INFORMATION ON THE COMPANY