Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 42

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 42
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segments may be subject to various government and regulatory interference in the provinces in which they operate. SunCar could be subject
to regulation by various political and regulatory entities, including various local and municipal agencies and government sub-divisions.
SunCar may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure
to comply. The Chinese government may intervene or influence our operations at any time with little advance notice, which could result
in a material change in our operations and in the value of our ordinary shares. Any actions by the Chinese government to exert more oversight
and control over transaction that are conducted overseas and/or foreign investment in China-based issuers could significantly limit or
completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly
decline or be worthless.

Furthermore, it is uncertain
when and whether SunCar will be required to obtain permission or approval from the PRC government to list on U. S. exchanges in the future,
and even when such permission or approval is obtained, whether it will be denied or rescinded. Although SunCar is currently not required
to obtain permission from any of the PRC government to obtain such permission or approval and has not received any denial to list on the
U. S. exchange, our operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating
to its business or industry. As a result, our ordinary shares may decline in value dramatically or even become worthless should we become
subject to new requirement to obtain permission or approval from the PRC government to list on U. S. exchange in the future.

Recently, the General Office
of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Severe
and Lawful Crackdown on Illegal Securities Activities, which was available to the public on July 6, 2021. These opinions emphasized the
need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based companies.
These opinions proposed to take effective measures, such as promoting the construction of relevant regulatory systems, to deal with the
risks and incidents facing China-based overseas-listed companies and the demand for cybersecurity and data privacy protection. As these
opinions were recently issued, official guidance and interpretation of the opinions remain unclear in several respects at this time. Therefore,
we cannot assure you that we will remain fully compliant with all new regulatory requirements of these opinions