Company: SDAWW
Filing Date: 2025-02-06
Form Type: 424B5
Source: 0001213900-25-010989
Chunk: 6

Company: SunCar Technology Group Inc.
Filing Date: 2025-02-06
Form: 424B5
Chunk 6
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 PRC/Hong Kong or a PRC/Hong
Kong entity, the funds may not be available to fund operations or for other use outside of the PRC/Hong Kong due to interventions in or
the imposition of restrictions and limitations on the ability of SunCar or SunCar’s subsidiaries, by the PRC government to transfer
cash.

If we intend to distribute dividends, we will
transfer the funds to Auto Market HK from WFOE in accordance with the laws and regulations of the PRC, and then Auto Market HK will transfer
the dividends to SunCar, and the dividends will be distributed from SunCar to all shareholders respectively in proportion to the shares
they hold, regardless of whether the shareholders are U.S. investors or investors in other countries or regions. In terms of the cash
transfer among SunCar and its subsidiaries, subject to the amounts of cash transfer and the nature of the use of funds, requisite internal
approval shall be obtained prior to each cash transfer. Specifically, all transactions require the approvals of the financial controllers
of the entities involved. As for an internal cash transfer that exceeds RMB10,000,000 (approximately $1.5 million), the general manager
is also required to conduct review and approval. There are no other cash management policies.

In the reporting periods presented in this prospectus
supplement, (1) no cash transfers have occurred between our holding company and its subsidiaries, (2) no dividends nor distributions have
been made by the subsidiaries to our holding company, and (3) our holding company has not paid any dividends nor made any distributions
to U.S. investors. For further details, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as the consolidated financial statements for fiscal years ending December 31, 2023, 2022 and
2021, and the periods ended June 30, 2024 and September 30, 2024, incorporated by reference in this prospectus supplement. As of the date
of this prospectus supplement, SunCar does not have any cash management policy other than that stated in the paragraph above. For the
foreseeable future, we intend to use the earnings for research and development, to develop new products and to expand our production capacity.
As a result, SunCar currently does not have a plan to declare dividends to its shareholders in the foreseeable future.

The ability of SunCar’s PRC subsidiaries
to distribute dividends is based upon their distributable earnings