Financial Data and Key Metrics Changes - For the fiscal year ended December 31, 2023, total revenue reached $364 million, representing a 29% increase from $282 million in 2022 [12] - The Auto Service segment generated $215 million in revenue, an 8% increase from $199 million in 2022 [12] - The Auto e-Insurance segment reported revenue of $149 million, a significant 79% increase from $83 million in 2022 [12] - Net losses were $18 million for the year ended December 31, 2023, compared to $12 million in 2022 [13] - Adjusted EBITDA improved to a positive $1.6 million for the year ended December 31, 2023, up from a negative figure in the previous year [14] Business Line Data and Key Metrics Changes - The Auto Service segment focuses on technology platforms for services like car wash and maintenance, contributing $215 million in revenue [12] - The Auto e-Insurance segment, which includes e-Insurance Intermediation and Technology Service, generated $149 million, with the Intermediation business alone accounting for $118 million, a 75% increase year-over-year [12][13] - Technology Service revenue reached $31 million, marking a 98% increase from 2022 [13] Market Data and Key Metrics Changes - The company has expanded its network of Auto Service providers to over 47,000 across more than 350 cities in China [9] - The e-Insurance sales partner network increased to over 64,000, enhancing the company's market presence [9] Company Strategy and Development Direction - The company aims to establish itself as the largest technology platform for Auto Services and e-Insurance in China, leveraging its cloud-based technology [6][7] - Strategic partnerships with major electric vehicle manufacturers like Tesla, NIO, and BYD are being pursued to enhance market presence and growth opportunities [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in 2024, driven by the synergies between Auto Services and e-Insurance [7][14] - The e-Insurance segment is expected to become a larger portion of the business due to the rapid growth in vehicle sales and electric vehicle adoption in China [21] Other Important Information - The company emphasizes the interconnected nature of its Auto Service and e-Insurance businesses, which creates synergies and enhances customer experience [10] Q&A Session Summary Question: Why and how do banks, insurance companies, and enterprise clients use SunCar Auto Service? - The cloud-based platform allows banks and insurance companies to offer various services to their clients, enhancing customer loyalty [15][16] Question: What differentiates you and why do people choose you over your competitors? - The company provides nationwide coverage and technology integrations that allow for quick delivery of e-Insurance policies, unlike competitors who operate regionally [17] Question: Which business is more profitable, services or insurance? - Currently, the Auto Service segment is more profitable, but the e-Insurance segment is rapidly growing and will focus on profitability as it expands [18] Question: Do you expect the insurance business to become the dominant portion of the company? - The e-Insurance segment is in a stage of rapid growth and is expected to become a larger portion of the business in the future [20] Question: What is your go-to-market strategy for insurance? - The strategy leverages a large network of sales partners to deliver cloud-based insurance solutions quickly to end customers [22] Question: What is driving the growth of the business? - Growth is driven by the adoption of e-Insurance technology and increased vehicle sales, particularly in the electric vehicle sector [23]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF ...

Adjusted EBITDA increased by $7.2 million to $1.6 million in 2023Conference Call and Webcast on April 30th at 5 PM ET NEW YORK, April 29, 2024 /PRNewswire/ -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in cloud-based B2B auto services and auto e-insurance in China, today provided a business update and reported financial results for the year ended December 31, 2023. Fiscal Year 2023 Financial Results For the fiscal year ended December 31, 2023, total revenue ...

NEW YORK, April 24, 2024 /PRNewswire/ -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in cloud-based B2B auto services and auto e-insurance in China, will announce its financial results for Fiscal Year 2023 on Monday, April 29th before the market opens. SunCar will host a conference call on Tuesday, April 30, at 5:00 PM ET (2:00 PM PT) with the investment community to discuss the Company's financial results and provide a business update.Investors may submit wr ...

NEW YORK, April 2, 2024 /PRNewswire/ -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in digitalized automotive services and auto e-insurance in China, announced that it will offer exclusive airport concierge car services to the private banking clientele of China CITIC Bank International Limited ("CNCBI"). This three-year partnership will leverage SunCar's expertise in corporate travel services to help CNCBI's provide unmatched service quality and client satisf ...

NEW YORK, Feb. 21, 2024 /PRNewswire/ -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in digitalized automotive after-sales services and online auto insurance intermediation in China, today announced a new business cooperation (the "Agreement") through its wholly owned subsidiary, Shanghai Chengle Network Technology Co., Ltd. with Beijing Li Auto Insurance Brokerage Company ("Li Auto Insurance"). This partnership focuses on developing a state-of-the-art informa ...

NEW YORK, Jan. 22, 2024 /PRNewswire/ -- SunCar Technology Group Inc. (the "Company" or "SunCar") (NASDAQ: SDA), an innovative leader in digitalized automotive after-sales services and online auto insurance intermediation in China, today announced an exclusive vehicle service contract with the Sichuan Branch of China Construction Bank, one of China's largest financial institutions. SunCar expects to derive cumulative revenue from the contract valued at approximately RMB 23.4 million, or USD 3.3 million. This ...

Core Insights - SunCar Technology Group Inc. has secured a two-year exclusive vehicle service contract with the Fujian Branch of China Construction Bank, expected to generate approximately RMB 25 million (USD 3.5 million) in cumulative revenue [1][2] Group 1: Contract Details - The contract positions SunCar as the exclusive provider of vehicle services for China Construction Bank's Fujian Branch, highlighting the company's trusted reputation in the automotive after-sales service industry [2] - SunCar operates an extensive network of 460 car wash locations across Fujian, enabling it to provide high-quality car wash services to tens of thousands of customers [2] Group 2: Strategic Expansion - The company aims to expand its service offerings to additional banks and regions, having already established or renewed agreements with several major banks, including China Minsheng Banking Corp., Bank of Communications, China CITIC Bank, and Agricultural Bank of China over the past year [2] Group 3: Company Overview - Founded in 2007, SunCar is a leader in digitalized automotive after-sales services and online auto insurance intermediation in China, the largest passenger vehicle market globally [4] - The company operates a multi-tenant, cloud-based platform that connects drivers with a variety of automotive services and insurance options, enhancing customer experience and service management [4]

Financial Statements [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$224.0 million** by June 30, 2023, with liabilities rising to **$170.1 million** and equity turning positive Condensed Consolidated Balance Sheet (in thousands USD) | Account | Dec 31, 2022 | June 30, 2023 (Unaudited) | | :--- | :--- | :--- | | **Total Current Assets** | $145,350 | $177,292 | | **Total Non-current Assets** | $46,618 | $46,727 | | **TOTAL ASSETS** | **$191,968** | **$224,019** | | **Total Current Liabilities** | $155,192 | $125,973 | | **Total Non-current Liabilities** | $0 | $44,158 | | **TOTAL LIABILITIES** | **$155,192** | **$170,131** | | **Total Equity** | $36,776 | $53,888 | - Total assets grew from **$192.0 million** to **$224.0 million**, while total liabilities increased from **$155.2 million** to **$170.1 million** between December 31, 2022, and June 30, 2023[7](index=7&type=chunk) - A significant change in liabilities was the reclassification of **$45.6 million** in 'Amount due to related parties' from current to non-current, with the non-current portion being **$43.3 million** as of June 30, 2023[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Total revenues increased **27.8%** to **$159.4 million** in H1 2023, but operating profit plummeted **81.1%** to **$1.1 million** due to rising expenses, resulting in a net loss Statement of Operations Highlights (in thousands USD, except per share data) | Metric | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Total Revenues** | **$124,728** | **$159,378** | | Automotive after-sales service | $89,851 | $98,813 | | Insurance intermediation service | $29,346 | $47,710 | | Technology service | $5,531 | $12,855 | | **Operating Profit** | **$5,981** | **$1,128** | | **Net Income (Loss) Attributable to Shareholders** | **$2,125** | **($3,379)** | | **Basic and Diluted EPS** | **$0.03** | **($0.04)** | - Total revenues grew **27.8%** YoY, driven by strong performance in Insurance Intermediation (**+62.6%**) and Technology services (**+132.4%**)[11](index=11&type=chunk) - Operating costs and expenses increased significantly to **$158.3 million** from **$118.7 million**, primarily due to a **74.7%** rise in promotional service costs and an **88.1%** increase in selling expenses, leading to a sharp decline in operating profit[11](index=11&type=chunk) [Unaudited Condensed Consolidated Statements of Changes in Equity](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to **$53.9 million** by June 30, 2023, primarily due to a **$21.7 million** private placement and reverse recapitalization, despite a net loss - The company completed a reverse recapitalization on **May 17, 2023**, which is accounted for as an issuance of shares by SunCar for the net monetary assets of Goldenbridge Acquisition Limited[25](index=25&type=chunk)[26](index=26&type=chunk) - A private placement in H1 2023 raised **$21.7 million** through the issuance of **2,173,657** Class A ordinary shares[16](index=16&type=chunk)[96](index=96&type=chunk) - Total equity attributable to the company's shareholders shifted from a deficit of **$5.3 million** at year-end 2022 to a positive equity of **$9.3 million** by June 30, 2023[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities used **$20.5 million** in H1 2023, while financing activities provided **$35.5 million**, leading to a **$14.2 million** increase in cash and restricted cash Condensed Consolidated Statements of Cash Flows (in thousands USD) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Net cash used in operating activities** | **($20,537)** | **($20,525)** | | **Net cash (used in) provided by investing activities** | **($1,724)** | **$897** | | **Net cash provided by financing activities** | **$26,126** | **$35,485** | | Effect of exchange rate changes | ($1,463) | ($1,661) | | **Net change in cash and restricted cash** | **$2,402** | **$14,196** | | **Cash and restricted cash, end of period** | **$39,749** | **$38,113** | - Cash used in operations remained high at **$20.5 million**, primarily due to a **$38.8 million** increase in prepaid expenses and other current assets, which was partially offset by increased accounts payable and decreased accounts receivable[19](index=19&type=chunk)[197](index=197&type=chunk) - Financing activities were the primary source of cash, driven by **$68.3 million** in proceeds from short-term loans and **$21.7 million** from a private placement, net of loan repayments[19](index=19&type=chunk)[200](index=200&type=chunk) [Notes to Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes include the May 2023 reverse recapitalization, disposal of Shengda Group, segment operations, significant customer concentration, and extended related-party payables - On **May 17, 2023**, the company consummated a reverse recapitalization with Goldenbridge Acquisition Limited, with SunCar determined as the accounting acquirer[25](index=25&type=chunk)[26](index=26&type=chunk) - The company disposed of its subsidiary, Shengda Group, on **March 1, 2022**. The results of this business are presented as discontinued operations[31](index=31&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - For H1 2023, Customer A and Customer B accounted for **19%** and **17%** of total revenue, respectively. As of June 30, 2023, Customers E, C, and F represented **16%**, **16%**, and **13%** of total accounts receivable, respectively[126](index=126&type=chunk)[127](index=127&type=chunk) - As of June 30, 2023, the company had significant payables to Shengda Group (a related party) totaling **$43.3 million**, with the repayment date extended to **December 31, 2025**, at a **1%** annual interest rate[119](index=119&type=chunk)[120](index=120&type=chunk) Management's Discussion and Analysis of Financial Condition and Results of Operations [Business Overview](index=31&type=section&id=Business%20Overview) SunCar provides digitalized automotive after-sales services and online auto insurance intermediation in China, operating three main business segments - The company operates **three primary business segments**: automotive after-sales service, insurance intermediation, and technology services[139](index=139&type=chunk) - In the after-sales business, SunCar provides customized service solutions to enterprise clients (banks, insurance companies) whose end customers require automotive services[139](index=139&type=chunk) - The insurance intermediation business facilitates the sale of auto insurance products from major Chinese insurers through a proprietary online digital platform[140](index=140&type=chunk) - Technology services involve providing software solutions like CRM, order management, and financial systems to partners on a proprietary hybrid cloud platform[141](index=141&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Total revenue grew **28%** to **$159.4 million** in H1 2023, but operating profit fell **81%** to **$1.1 million** due to a **33%** increase in operating expenses Comparison of Results of Operations (in thousands USD) | Line Item | H1 2022 | H1 2023 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenues** | **$124,728** | **$159,378** | **28%** | | Automotive after-sales service | $89,851 | $98,813 | 10% | | Insurance intermediation service | $29,346 | $47,710 | 63% | | Technology service | $5,531 | $12,855 | 132% | | **Total operating costs and expenses** | **($118,747)** | **($158,250)** | **33%** | | Promotional service expenses | ($28,363) | ($49,563) | 75% | | Selling expenses | ($6,802) | ($12,793) | 88% | | **Operating profit** | **$5,981** | **$1,128** | **-81%** | | **Net profit (loss)** | **$5,692** | **$1,136** | **-80%** | - Insurance intermediation revenue grew **63%** to **$47.7 million**, driven by a **118%** increase in the number of policies sold, which offset a **20%** decrease in average commission rates[182](index=182&type=chunk) - Technology service revenue increased by **132%** to **$12.9 million** due to business expansion and improved IT infrastructure via a Private Cloud Platform[183](index=183&type=chunk) - General and administrative expenses decreased by **19%** to **$4.0 million**, mainly due to a **$3.7 million** bad debt reversal following the adoption of ASC326, which was partially offset by increased professional service fees for the public listing[185](index=185&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company held **$35.5 million** in cash, with liquidity primarily from financing activities and significant contractual obligations Cash Flow Summary (in thousands USD) | Activity | Six Months Ended June 30, 2023 | | :--- | :--- | | Net cash used in operating activities | ($20,525) | | Net cash provided by investing activities | $897 | | Net cash provided by financing activities | $35,485 | | **Net increase in cash and restricted cash** | **$14,196** | - Principal sources of liquidity are cash from bank borrowings, equity financing from private placement, and revenue from business operations[194](index=194&type=chunk) Contractual Obligations as of June 30, 2023 (in thousands USD) | Obligation | Total | | :--- | :--- | | Operating lease payment | $1,517 | | Capital payment | $8,018 | | Short-term borrowings | $85,199 |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(B) OR 12(G) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF ...