Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 64

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 64
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 in the future, and the amount of any dividend,
will depend upon a number of factors, including our earnings and financial condition, operating requirements, capital requirements, business
prospects, statutory, regulatory and contractual restrictions on our declaration and payment of dividends, and any other factors that
our Directors may consider important. Any history dividends distribution cannot be regarded as any form of indication of either the amount
or the time we will distribute dividends. We cannot assure you that our dividend policies will not change in the future.

SunCar is a holding company, and will rely
on dividends paid by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments
to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends
to holders of our ordinary shares.

SunCar is a holding company
and conduct substantially all of our business in China through our PRC Operating Entities. We may rely on dividends to be paid by our
PRC Operating Entities to fund our cash and financing requirements, including the funds necessary to pay dividends and other cash distributions
to our shareholders, to service any debt we may incur and to pay our operating expenses. If our PRC Operating Entities incur debt on its
own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to
us, and in turn affect our ability to pay dividends to our investors.

Under PRC laws and regulations,
our PRC Operating Entities may pay dividends only out of their accumulated profits as determined in accordance with PRC accounting standards
and regulations. In addition, our subsidiaries in China are required to set aside at least 10% of its after-tax profits each year, if
any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entity in China is also required
to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any,
is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase
the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not
distributable as cash dividends except in the event of liquidation. If our PRC Operating Entities cannot generate enough revenues in the
future, their abilities to pay dividends or make other distributions to us may be restricted,