Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 63

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 63
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 responded by imposing, and
proposing to impose additional, new, or higher tariffs on certain products imported from the United States. Following mutual retaliatory
actions for months, on January 15, 2020, the United States and China entered into the Economic and Trade Agreement Between the United
States of America and the People’s Republic of China as a phase one trade deal, effective on February 14, 2020.

Although the direct impact
of the current international trade tension, and any escalation of such tension, on the industries in which we operate is uncertain, the
negative impact on general, economic, political and social conditions may adversely impact our business, financial condition and results
of operations.

Risks Related to Ownership of SunCar’s
Securities

Payment of dividends is subject to restrictions
under PRC laws. There is no assurance whether and when we will pay dividends.

On October 26, 2021, Shengshi
Dalian Insurance Agency Co., Ltd. (“ SUNCAR Online”), one of SunCar’s majority-owned subsidiary listed on the National
Equities Exchange and Quotations Co., Ltd. (the “ NEEQ”) declared and paid dividend of US$15,859,000, among which US$6,620,000
was paid to non-controlling shareholders of SUNCAR Online. The remaining dividends were paid to 100% owned subsidiaries of SunCar.

Under applicable PRC laws,
dividends may be paid only out of distributable profits. Distributable profits mean, as determined under PRC GAAP or U. S. GAAP, whichever
is lower, our net profits for a period, plus the distributable profits or net of the accumulated losses, if any, at the beginning of such
period, less appropriations to transaction risk reserve, statutory surplus reserve (determined under PRC GAAP) and discretionary surplus
reserve (as approved by our shareholders’ meeting). As a result, we may not have sufficient profit to enable us to make future dividend
distributions to our shareholders, even if one of our financial statements prepared in accordance with PRC GAAP or U. S. GAAP indicates
that our operations have been profitable. After the completion of the Transaction, we may distribute dividends in the form of cash or
by other means permitted by our Articles of Association. Any proposed distribution of dividends shall be formulated by our Board and will
be subject to approval of our Shareholders. A decision to declare or to pay any dividends