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

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 28
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 may be materially and adversely affected.

Our operations depend on the performance
of the Internet and mobile Internet infrastructure and telecommunications networks in China, which may not be able to support the demands
associated with our continued growth.

Almost all access to the Internet
in China is maintained through state-owned telecommunication operators under the administrative control and regulatory supervision of
the Ministry of Industry and Information Technology ( or the “ MIIT”). Moreover, we primarily rely on a limited number of telecommunications
service providers to provide us with data communications capacity through local telecommunications lines and internet data centers to
host our servers. We have limited access to alternative networks or services in the event of disruptions, failures or other problems with
the Internet infrastructure or the telecommunications networks in China. We cannot assure you that these infrastructures will be able
to support the demands associated with the continued growth in usage.

With the expansion of our
business, we may be required to upgrade our facilities, technology, operational and information technology infrastructure to keep up with
our business growth, which may require substantial investment. In addition, we may need to devote significant resources to creating, supporting
and maintaining our mobile APPs, given the increasing trend of accessing the Internet through smart phones, tablets and other mobile devices
and the continual release of new mobile devices and mobile platforms. However, we may not be able to effectively develop or enhance these
technologies on a timely basis or at all, which may decrease end consumers’ satisfaction and efficiency of our business process.
Our failure to keep pace with rapid technological changes may impact our ability to retain or attract end consumers of our products and
services or generate income, and have an adverse effect on our business and results of operations.

Our limited insurance coverage could expose
us to significant costs and business disruption.

We believe we maintain insurance
policies covering risks in line with industry standards. We maintain limited business liability, litigation and property insurance. We
maintain no liability insurance coverage over our major assets and facilities and do not plan to carry such insurance. This is consistent
with our digitalized and online business model which is light on tangible assets (approximately 5% of our total assets consist of property,
plant and equipment). We do not have any business interruption insurance. Any uninsured occurrence of business disruption, litigation
or natural disaster, or significant damages to our uninsured equipment or facilities could have an adverse effect on our results of operations.
We do not maintain key-man life insurance either. The insurance companies in China currently offer limited business-related insurance
products. As such