Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 118

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 4A
Chunk 118
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 million as of December 31, 2024. All of the capital
commitments will be fulfilled according to the investment payment schedule.

From time to time, we take
out borrowings with commercial banks to provide for its working capital for daily operation. See “ Index to Financial Statements - Borrowings”.

Related Party Transaction

Shengda
Automobile Service Group Co., Limited and its subsidiaries (“ Shengda Group”), owned by Mr. Ye Zaichang, the Chairman of the
Board of Directors, was disposed on March 1, 2022, such disposition has been completed as of that date. In addition, we were liable to
Jiachen of RMB281.8 million (US$40.9 million) for the transfer of SUNCAR Online as of December 31, 2022. Additionally, we were liable
to Shengda Group of $4.7 million for the ordinary course of operation, which was interest-free, unsecured, and could be settled on demand.
In the share purchase agreement dated March 1, 2022, we agreed to repay the debt owed to Shengda Group by full before June 1, 2023. In
April 2023, we negotiated with Jiachen and consented to have an extension of payment to extend the repayment date to December 31, 2025,
with an annual interest rate of 1% from June 30, 2023 to the completion of the repayment.

In
2023, we repaid the debt owed to Shengda Group of US$10 million. In the first three quarters of 2024, we repaid the debt owned to Shengda
Group through transfer of shares of SunCar Online at an aggregate amount of US$6.2 million. The non-cash gains from the difference of
repurchase price and transfer price of US$4.5 million were charged to additional-paid-in capital.

As
of December 31, 2024, the payables due to the transfer of SunCar Online was US$22.8 million, and other payables were US$5.7 million to
Shengda Group and US$0.5 million to Mr. Lei Zhunfu for the ordinary course of operation, which were interest free, unsecure and could
be settled on demand.

B. Liquidity and Capital Resources

Please
see Item 5. A. “ Operating Results-Liquidity and Capital Resources” above.

C