Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 126

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 126
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, and reports.
For insurance purchasers, our online insurance interface provides data-driven, AI-empowered real time quotation, pricing, underwriting
and payment, by connecting to our market-wide insurer clients and the full spectrum of their policy selections. Our AI-empowered hybrid
cloud infrastructure provides the secure storage and computation to support the demands by both insurance companies as well as end customers.

We have started making our
technologies into a new business line. With growing demands to efficiently manage their businesses, our auto service providers are now
paying for our online tools to streamline their business workflows, manage their customer relationships and automate orders processing.
With the iterative upgrades of our technology, we are working on developing more SaaS model product offerings and plan to gradually turn
our auto service providers into our technology customers.

We believe the cross-utilizations
and interconnections between our auto service and auto eInsurance business lines enable positive feedback loops between them and symbiotic
growth of both. While we are developing our nation-wide auto service provider network, these service providers become our sales partners
of our auto eInsurance business. Conversely, when we engage with insurance companies to sell their insurance products, we also engage
them as clients of our auto service solutions. We believe our synergistic business development will boost our sales channels as well as
client network in both of our business segments.

As our business is closely
connected to the auto industry, we have also embraced the recent trends of electric and smart vehicles. We are now working with 20 mainstream
EV and smart car panel players, embedding our auto service solutions into their online applications and panels, and providing various
insurance products to EV owners.

Our Business Model and Business Segments

The diagram below demonstrates
models of our auto eInsurance business and our auto services business, and the symbiotic relations between them. We embedded our auto
service module, as customized by our enterprise customers, into their own online applications and realize the offline services via our
service networks. And we help our insurance company clients sell their insurance products through our sales partners.

Our auto eInsurance
business

We generate revenue for our
auto eInsurance business through collecting commissions from insurance companies for successful sales of their insurance products, which
are typically based on a percentage of the premium paid by insurance purchasers. The commission rates are typically set by insurance companies
and differ by product types, insurance companies and regions where the products are sold. The commission rates are also subject to adjustments
by insurance companies based on their expectations on profits,