Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 59

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 59
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 PRC
as long as certain procedural requirements are met. However, permission or approval from appropriate government authorities is required
if Renminbi is converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated
in foreign currencies. To the extent cash in the business is in the PRC/Hong Kong or a PRC/Hong Kong entity, the funds may not be available
to fund operations or for other use outside of the PRC/Hong Kong due to interventions in or the imposition of restrictions and limitations
on the ability of SunCar or SunCar’s subsidiaries, by the PRC government to transfer cash. The PRC government may, at its discretion,
impose restrictions on access to foreign currencies for current account transactions and if this occurs in the future, we may not be able
to pay dividends in foreign currencies to our shareholders, including U. S. investors.

Our failure to fully comply with PRC labor-related
laws may expose us to potential penalties.

Companies operating in China
are required to participate in various government sponsored employee benefit plans, including certain social insurance, housing funds
and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including
bonuses and allowances, of our employees up to a maximum amount specified by the local government from time to time at locations where
we operate our businesses. The requirement of employee benefit plans has not been implemented consistently by the local governments in
China given the different levels of economic development in different locations. We have been paying and will continue to pay social security
and housing fund contributions in strict compliance with the relevant PRC regulations for and on behalf of our employees. However, we
may be subject to penalties for our failure to make payments in accordance with the applicable PRC laws and regulations should any regulations
change in the future, in which case, we may be required to make up the contributions for these plans as well as to pay late fees and fines.
If we are subject to fines in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely
affected.

The Holding Foreign Companies Accountable
Act, or the HFCAA, and the related regulations are evolving quickly. Further implementations and interpretations of our amendments to
the HFCAA or the related regulations, or a PCAOB’s determination of its lack of sufficient access to inspect our auditor, might
pose regulatory risks to and impose restrictions on us because of our operations in mainland China that PCA