Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 94

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4
Chunk 94
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. Organizational Structure

SunCar conducts its operations
in China primarily through its PRC Operating Entities. ASGL was incorporated under the laws of the British Virgin Islands on September
19, 2012 and continued in the Cayman Islands in accordance with applicable laws. SunCar, including all of its subsidiaries, does not have
variable interest entity (“ VIE”) structure. SunCar is a holding company and conduct substantially all of its business in China
through its subsidiaries in China (the “ PRC Operating Entities”). It may rely on dividends to be paid by its PRC Operating
Entities to fund its cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to shareholders,
to service any debt and to pay our operating expenses. Upon consummation of the Business Combination, ASGL and Goldenbridge became wholly
owned subsidiaries of SunCar.

Under PRC laws and regulations,
the PRC Operating Entities may pay dividends only out of their accumulated profits as determined in accordance with PRC accounting standards
and regulations. In addition, the PRC Operating Entities are 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 its registered capital. Each of such entity in China is also required
to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any,
is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other ways, to increase
the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are
not distributable as cash dividends except in the event of liquidation. In addition, the Enterprise Income Tax Law, or EIT, and its implementation
rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident
enterprises unless otherwise exempted or reduced according to treaties or arrangements between the PRC central government and governments
of other countries or regions where the non-PRC resident enterprises are incorporated.

The chart below summarizes the Company’ corporate structure and
identifies its principal subsidiaries, where the entities below the dashed line are organized in PRC under PRC laws.

Beijing Beisheng United insurance Agency Co. Limited is 80% owned by
Shangshi Dalian Insurance Agency Co., Limited and 20% owned by Beijing