Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 71

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 71
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 Business Overview

Prior to the Business Combination,
the Company did not conduct any material activities other than those incidental to its formation and the matters contemplated by the Merger
Agreement, such as the making of certain required securities law filings and the establishment of merger subsidiaries. Upon the Closing,
the Company became the direct parent of ASGL (d/b/a SunCar), and conducts its business through ASGL and ASGL’s subsidiaries.

INDUSTRY OVERVIEW OF SUNCAR

Electric Vehicles (“ EVs”) in China

The EV auto service
market has shown significant growth in recent years. With the continuous research and development investment in the electric vehicle space,
EVs demonstrate their market potential through a robust increase in sales in recent years. An increasing number of players have quickly
entered the EV auto service market to gain first-mover advantage, while existing auto service providers have deployed specific equipment
and initiated pilot collaborations with EV manufacturers.

Overview of China’s Auto eInsurance Market

The insurance market in China
is highly concentrated and dominated by state-owned insurance companies such as PICC, PingAn, and Pacific Insurance, with the top 10 insurance
company groups enjoying over 90% market share.

Auto eInsurance in China include
compulsory motor vehicle liability insurance and commercial insurance. Compulsory motor vehicle liability insurance premium is paid annually
with rates determined by accident record and capacity of the vehicle. Commercial insurances are classified into two categories, primary
insurances and additional insurances. Usually, the premium of commercial insurance is decided by the sales price of the vehicle, records
of traffic regulation violations and other possible variables. Commercial insurances are frequently adjusted according to the accident
rate in previous years.

Auto insurance agency market
in China includes two parties, namely insurance companies and insurance agencies. Insurance companies are the manufacturer of insurance
products. Insurance policies are created and administered and claims are paid by the insurance company. Insurance companies are responsible
for issuing and assuming the risk for insurance policies. Insurance agencies are the retail or wholesale shop that sells and services
the product created by the manufacturer, i. e. the insurance company. They are not directly employed by any insurance company. Instead,
they can decide which insurance companies they would like to represent and which products they would like to sell. By cooperating with
various insurance companies, the insurance agency service providers are able to offer insurance products underwritten by different insurance
companies, making more options available for consumers.

Auto eInsurance agency refers
to the auto insurance agency that lever