Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 71

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 71
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ist the Company’s securities. In addition, under the HFCAA, as amended by the AHFCAA,
our securities may be prohibited from trading on the Nasdaq or other U.S. stock exchanges if our auditor is not inspected by the PCAOB
for two consecutive years, and this ultimately could result in our Ordinary Shares being delisted by the Nasdaq.

The structure of cash flows within our organization
and a summary of the applicable regulations are as follows: Our equity structure is a direct holding structure. ASGL (as defined below),
direct and wholly owned subsidiary of SunCar, controls Haiyan Trading (Shanghai) Co., Ltd (“Haiyan Trading”, or the “WFOE”)
and other domestic operating entities through the Hong Kong company, Auto Market Group Ltd. (“Auto Market HK”). Within our
direct holding structure, the cross-border transfer of funds within our corporate group is legal and compliant with the current laws and
regulations of the PRC. After any non-PRC based investors’ funds enter SunCar at SunCar’s securities offerings outside of
China, the funds can be directly transferred to Auto Market HK, and then transferred to subordinate operating entities through the WFOE
in accordance with relevant laws and regulations of the PRC. 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.

If we intend to distribute dividends, we will
transfer the funds to Auto Market HK from WFOE in accordance with the laws and regulations of the PRC, and then Auto Market HK will transfer
the dividends to SunCar, and the dividends will be distributed from SunCar to all shareholders respectively in proportion to the shares
they hold, regardless of whether the shareholders are U.S. investors or investors in other countries or regions. In terms of the cash
transfer among SunCar and its subsidiaries, subject to the amounts of cash transfer and the nature of the use of funds, requisite internal
approval shall be obtained prior to each cash transfer. Specifically, all transactions require the approvals of the financial controllers
of the entities involved. As for an internal cash transfer exceeds RMB10,000,000 (approximately $1.5 million), the general manager is