Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 58

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 58
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 of loans to and direct investment
in PRC entities by offshore holding companies may delay us from using the proceeds of future offerings to make loans or additional capital
contributions to our PRC Operating Entities, which could materially and adversely affect our liquidity and our ability to fund and expand
our business.

Any funds we transfer to and
from the PRC Operating Entities, either as a shareholder loan or as an increase in registered capital or dividend distributions, are subject
to permission or approval by or registration with relevant governmental authorities in China. According to the relevant PRC regulations
on foreign invested enterprises in China, capital contributions to our PRC Operating Entities are subject to the registration with the
State Administration for Market Regulation or its local counterpart and registration with a local bank authorized by SAFE. In addition,
(i) any foreign loan procured by our PRC Operating Entities is required to be registered with the SAFE or its local branches and (ii)
any of our PRC Operating Entities may not procure loans which exceed the difference between its total investment amount and registered
capital or, as an alternative, only procure loans subject to the calculation approach and limitation as provided by the People’s
Bank of China. Additionally, any medium or long-term loans to be provided by us to the PRC Operating Entities must be registered with
the National Development and Reform Commission and SAFE or its local branches. We may not be able to obtain these government permissions
or approvals or complete such registrations in a timely manner, or at all, with respect to future capital contributions or loans by us
to our PRC Operating Entities. If we fail to receive such permissions or approvals or complete such registration or filing, our ability
to use the proceeds of future offerings to capitalize our PRC operations may be negatively affected, which could adversely affect our
liquidity and our ability to fund and expand our business. In addition, the PRC government imposes controls on the convertibility of RMB
into foreign currencies and, in certain cases, the remittance of currency out of China. The majority of the SunCar subsidiaries’
income is received in RMB and shortages in foreign currencies may restrict our ability to pay dividends or other payments, or otherwise
satisfy our foreign currency denominated obligations, if any. Under existing PRC foreign exchange regulations, payments of current account
items, including profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign
currencies without prior permission or approval from The State Administration of the Foreign Exchange (“ SAFE”) in the