Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 72

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 72
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also required to conduct review and approval. There are no other cash management policies.

In the reporting periods presented in this prospectus,
(1) no cash transfers have occurred between our holding company and its subsidiaries, (2) no dividends nor distributions have been made
by the subsidiaries to our holding company, and (3) our holding company has not paid any dividends nor made any distributions to U.S.
investors. For further details, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as the consolidated financial statements for fiscal years ending in December 31, 2023, 2022 and 2021,
incorporated by reference in this prospectus. As of the date of this prospectus, SunCar does not have any cash management policy other
than that is stated in the paragraph above. For the foreseeable future, we intend to use the earnings for research and development, to
develop new products and to expand our production capacity. As a result, SunCar currently does not have a plan to declare dividends to
its shareholders in the foreseeable future.

SunCar’s PRC subsidiaries’ ability
to distribute dividends is based upon their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay dividends
to their respective shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards
and regulations. In addition, each of our PRC subsidiaries is 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 each of their registered capitals. These reserves are not distributable
In addition, PRC Operating Entities cannot distribute dividends until previous years’ loss has been offset.

To address persistent capital outflows and the
RMB’s depreciation against the U.S. dollar in the fourth quarter of 2016, the People’s Bank of China and the State Administration
of Foreign Exchange, or SAFE, have implemented a series of capital control measures in the subsequent months, including stricter vetting
procedures for China-based companies to remit foreign currency for overseas acquisitions, dividend payments and shareholder loan repayments.
The PRC government may continue to strengthen its capital controls and our PRC subsidiaries’ dividends and other distributions may
be subject to tightened scrutiny in the future. The PRC government also imposes controls on the conversion of RMB into foreign currencies
and the remittance of currencies out of the PRC. Therefore, we may