Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 21

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 21
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 impair our ability to
conduct and grow our business and compete effectively, which could materially and adversely impact our results of operations and business
prospects. On the other hand, any significant breakdown of our IT systems and infrastructure may materially and adversely affect our business,
results of operations, reputation and business prospects, and may even subject us to potential claims or even litigations, particularly
as parts of our IT systems and infrastructure are linked to or connected with IT systems and infrastructure of our insurance company partners
and enterprise customers, who are mostly sizeable and reputable financial institutions whom themselves are subject to stringent regulatory
supervision. As we rely heavily on our apps and our IT systems and infrastructure to facilitate and conduct our business, any prolonged
breakdown of systems and infrastructure could also materially impact our business and results of operations.

Failure to ensure and protect the confidentiality
of the personal data of end consumers could subject us to penalties, negatively impact our reputation and deter end consumers from using
our platforms.

In providing our services,
a challenge we face is the secured collection, storage and transmission of confidential information. We acquire certain private information
about end consumers, such as name, personal identification number, address and telephone number during the course of our business. We
also obtained certain personal data from our insurance company partners and enterprise customers pursuant to the collaboration agreements
with them, such as the vehicle registration number and registration date, the engine number, the make and model of the automobile and
information about the current insured status of the automobile of a potential insurance purchaser. We are required to collect and use
such information in accordance with relevant PRC laws and not to disclose or use such information without consent from the respective
consumers.

While we have taken steps
to protect the personal data that we have access to, our security measures could be breached. Any accidental or willful security breaches
or other unauthorized access to our system could cause confidential personal data to be stolen and used for criminal purposes, and could
also expose us to liability related to the loss of information, time-consuming and expensive litigation and negative publicity. If security
measures are breached or if we fail to protect confidentiality of the personal data of end consumers otherwise, our insurance company
partners, our enterprise customers as well as end consumers may be deterred from choosing us, which could result in significant loss of
business and we could incur significant liability, and our business and operations could be adversely affected.

We may fail to attract or retain an experienced
management team and qualified personnel.