Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 53

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 53
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 dollar may significantly reduce the U. S. dollar equivalent of our earnings, which in turn could adversely
affect the price of our ordinary shares, and if we decide to convert Renminbi into U. S. dollars for the purpose of making dividend payments
on our ordinary shares, strategic acquisitions or investments or other business purposes, appreciation of the U. S. dollar against the
Renminbi would have a negative effect on the U. S. dollar amount available to us.

Very limited hedging options
are available in China to reduce our exposure to exchange rate fluctuations. To date, we have not entered into any hedging transactions
in an effort to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in the future,
the availability and effectiveness of these hedges may be limited and we may not be able to adequately hedge our exposure or at all. In
addition, our currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert Renminbi
into foreign currency. As a result, fluctuations in exchange rates may have a material adverse effect on your investment.

The PRC government’s control over
foreign currency conversion may limit our foreign exchange transactions, including dividend payment to holders.

Currently, Renminbi still
cannot be freely converted into any foreign currency, and conversion and remittance of foreign currencies are subject to PRC foreign exchange
regulations. There is no assurance that, under a certain exchange rate, we will have sufficient foreign exchange to meet our foreign exchange
requirements. Under the current PRC foreign exchange control system, foreign exchange transactions under the current account conducted
by us, including the payment of dividends following the completion of the Transaction, do not require advance permission or approval from
the SAFE, but we are required to present documentary evidence of such transactions and conduct such transactions at designated foreign
exchange banks within the PRC that have the requisite licenses to carry out foreign exchange business. Foreign exchange transactions under
the capital account conducted by us, however, must be approved in advance by SAFE.

Under existing foreign exchange
regulations, following completion of the Transaction, we will be able to pay dividends in foreign currencies without prior permission
or approval from SAFE by complying with certain procedural requirements. However, we cannot assure you that these foreign exchange policies
regarding payment of dividends in foreign currencies will continue in the future. In addition, due to the restriction resulting from government
foreign exchange regulations and influence of foreign exchange shortage, any ins