Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 65

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 65
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 and in turn affect our ability to pay dividends
to our investors.

Our PRC Operating Entities
generates primarily all of their revenue in Renminbi, which is not freely convertible into other currencies. As a result, any restriction
on currency exchange may limit the ability of our PRC Operating Entities to use their Renminbi revenues to pay dividends to us. The PRC
government may continue to strengthen its capital controls, and more restrictions and substantial vetting process may be put forward by
SAFE for cross-border transactions falling under both the current account and the capital account. Any limitation on the ability of our
PRC Operating Entities to pay dividends or make other kinds of payments to us could materially and adversely limit our ability to grow,
make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

In addition, the Enterprise
Income Tax Law, or EIT, and its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends
payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties or arrangements
between the PRC central government and governments of other countries or regions where the non-PRC resident enterprises are incorporated.
Any limitation on the ability of our PRC Operating Entities to pay dividends or make other distributions to us could materially and adversely
limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund
and conduct our business.

Because there are no current plans to pay
cash dividends on the Class A Ordinary Share for the foreseeable future, you may not receive any return on investment unless you sell
your Class A Ordinary Share for a price greater than that which you paid for it.

SunCar intends to retain future
earnings, if any, for future operations, expansion and debt repayment and there are no current plans to pay any cash dividends for the
foreseeable future. The declaration, amount and payment of any future dividends on shares of the Class A Ordinary Share will be at the
sole discretion of SunCar’s board of directors. SunCar’s board of directors may take into account general and economic conditions,
the SunCar’s financial condition and results of operations, SunCar’s available cash and current and anticipated cash needs,
capital requirements, contractual, legal, tax, and regulatory restrictions, implications on the payment of dividends by SunCar to its
stockholders or by its subsidiaries to it and such other factors