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

Company: SunCar Technology Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 20
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 adversely affect our business, financial
condition and results of operation.

Our business is highly dependent
on the ability of our information technology systems to timely process a large number of transactions across different markets and products
at a time when the volume of such transactions is growing rapidly. We are also increasingly relying on our apps to facilitate the business
process of both our auto eInsurance and our auto services. Usability of our apps as perceived by users can influence customer satisfaction.
The proper functioning and improvement of our apps, our accounting, customer database, customer service and other data processing systems,
together with the communication systems between our various branches and our principal executive office in Shanghai, is critical to our
business and to our ability to compete effectively. We cannot assure you that our business activities would not be materially disrupted
in the event of a partial or complete failure of any of these primary information technology or communication systems, which could be
caused by, among other things, software malfunction, computer virus attacks or conversion errors due to system upgrading. In addition,
a prolonged failure of any of our information technology systems could damage our reputation and materially and adversely affect our operations
and profitability.

Our business model and our planned business
developments are dependent on the proper function of our IT systems and infrastructure and our ability to continuously improve our IT
systems and infrastructure and adopt advancing technologies. Breakdown of any of our major IT systems or failure to keep up with technological
developments would materially and adversely affect our business, results of operations and future prospects.

Our proprietary technology
and technological capabilities are critical to the development and maintenance of our IT systems and infrastructure underlying our apps
and platforms, which in turn is vital to our business operations and planned developments. We need to keep abreast of the fast evolving
IT developments, and continuously invest in significant resources, including financial and human capital resources to maintain, upgrade
and expand our IT systems and infrastructure in tandem with our business growth and developments. However, research and development activities
are inherently uncertain, and investments in information technologies and development of proprietary technologies may not always lead
to commercialization or monetarization, or lead to increased business volume and/or profitability. The fast evolving IT developments may
also render our existing systems and infrastructure and those that are newly developed and implemented obsolete before we are able to
reap sufficient benefits to recover their investment costs, and may lead to substantial impairments which would adversely affect our results
of operations. Obsolescence in our proprietary technology, IT systems and infrastructure may also significantly