Company: SDAWW
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036086
Chunk: 66

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 66
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 as SunCar’s board of directors may deem relevant. In addition,
SunCar’s ability to pay dividends is limited by covenants of SunCar’s existing and outstanding indebtedness and may be limited
by covenants of any future indebtedness SunCar incurs. As a result, you may not receive any return on an investment in SunCar’s
Class A Ordinary Share unless you sell SunCar’s Class A Ordinary Share for a price greater than that which you paid for it.

There has been no prior public market for
our Ordinary Shares and their liquidity and market price may be volatile.

We have applied for the listing
of, and permission to deal in, our Ordinary Shares on the Nasdaq Capital Market. We cannot assure you that a public market for our Ordinary
Shares with adequate liquidity and trading volume will develop and be sustained, or that the market price of our Ordinary Shares will
not decline following completion of the Transaction. Furthermore, the price and trading volume of our Ordinary Shares may be volatile.
The following factors, among others, may affect the trading volume and price of our Ordinary Shares:

  actual or anticipated fluctuations in our revenue and results of operations;  
  loss of significant customers or material defaults by our customers;          
  major changes in our key personnel or senior management;                      

  announcements of competitive developments, acquisitions or strategic alliances in our industry;                                                                                      
  changes in earnings estimates or recommendations by financial analysts;                                                                                                              
  involvement in litigation or regulatory investigations;                                                                                                                              
  general market conditions or other developments affecting us or our industry;                                                                                                        
  fluctuations in stock market price and volume and other events or factors beyond our control;                                                                                        
  the release of lockup or other transfer restrictions on our outstanding Ordinary Shares, or sales or perceived sales of additional Ordinary Shares by us or other shareholders; and  
  our inability to obtain or maintain regulatory approval for our business operations.                                                                                                 

In addition, stock markets
and the shares of other companies listed on the Nasdaq with significant operations and assets in China have been experiencing increasing
price and volume fluctuations in recent years, some of which have been unrelated or disproportionate to the operating performance of such
companies. These broad market and industry fluctuations may adversely affect the market price of our Ordinary Shares, and it is possible
that our Ordinary Shares may be subject to changes in price not directly related to our performance.

If SunCar fails to implement and maintain
an effective system of internal controls to remediate its material weaknesses over financial reporting, SunCar may be