Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 97

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 97
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 For the auto service business, our customers
are enterprises mainly consisting of banks, insurance companies, telecom companies, airlines and other large corporations. It is critical
for us to maintain good relationships and obtain recognition from both our enterprise customers and their end customers. We need to keep
growing our business, building our brand influence, and improving the quality of service to attract new customers, solidify relationships
with existing customers, and deliver a satisfactory service experience to the end-consumer. Positive feedback from the end-consumer encourages
our customers to deepen their business relations with us.

Cooperation with Service Providers

For the auto eInsurance business,
we collaborate with a variety of external referral sources to expand our market penetration and broaden our customer base. We have built
up a network of external sales partners, including offline after-sales networks who have frequent exposure to car owners, major online
platforms with significant user traffic, and emerging EV OEMs and service providers. Our strong relationships with external referral sources
are crucial for us to attract end customers for our auto eInsurance business.

For the auto service business,
we rely on auto service providers to deliver a variety of auto-related services to the end customers of our enterprise customers. Positive
feedback from end customers is dependent on the quality of service provided by our service providers. If our relationships with our service
providers deteriorate, our business, financial condition, and results of operations may be materially and adversely affected.

Operating Efficiency of our Business

While we expect our operating
costs and expenses to increase as our business grows, we also expect them to decrease as a percentage of revenues as we improve our operating
efficiency and achieve greater economies of scale.

The synergies between our
auto eInsurance and auto service businesses enable the symbiotic growth of both segments. As we continue to develop our nationwide automotive
service provider network, these service providers become sales partners in our auto eInsurance business. Conversely, when we engage with
insurance companies to sell their insurance products, we also engage them as customers of our auto service.

Our business is built on a
multi-tenant cloud platform which we have continued to integrate into both our customers systems as well as our service and sales networks.
We are in the process of adding AI intelligence and digital processes to all our internal workflows as well as to the related business
processes of our partners, empowering them with efficient and user-friendly tools and systems. We continue to deploy cutting-edge technology
including AI, big data, and Robotics Process Automation (“ RPA”), to