Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 37

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 37
---

applicable governmental registration and approval requirements.

Any loans we extend to our
PRC Operating Entities, which are treated as foreign-invested enterprises under PRC law, cannot exceed the statutory limit and must be
registered with the local counterpart of the State Administration of Foreign Exchange (“ SAFE”).

In July 2014, SAFE promulgated
the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents’ Offshore Investment and Financing and
Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, which replaces the previous SAFE Circular 75. SAFE Circular
37 requires PRC residents, including PRC individuals and PRC corporate entities, to register with SAFE or its local branches in connection
with their direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our shareholders who are PRC residents
and may be applicable to any offshore acquisitions that we may make in the future.

Under SAFE Circular 37, PRC
residents who make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose
vehicles, or SPVs, are required to register such investments with SAFE or its local branches. In addition, any PRC resident who is a direct
or indirect shareholder of an SPV, is required to update its registration with the local branch of SAFE with respect to that SPV, to reflect
any material change. Moreover, any subsidiary of such SPV in China is required to urge the PRC resident shareholders to update their registration
with the local branch of SAFE to reflect any material change. If any PRC resident shareholder of such SPV fails to make the required registration
or to update the registration, the subsidiary of such SPV in China may be prohibited from distributing its profits or the proceeds from
any capital reduction, share transfer or liquidation to the SPV, and the SPV may also be prohibited from making additional capital contributions
into its subsidiaries in China. In February, 2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration
Policy on Direct Investment, or SAFE Notice 13. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign
direct investments and outbound direct investments, including those required under SAFE Circular 37, must be filed with qualified banks
instead of SAFE. Qualified banks should examine the applications and accept registrations under the supervision of SAFE. We have used
our best efforts to notify PRC residents or entities who directly or indirectly hold shares in