SunCar Technology (US:SDA)2025-10-27 20:21Revenue Growth - Total revenues for the six months ended June 30, 2025, increased to $222.3 million, up from $203.1 million in the same period of 2024, representing a growth of approximately 9.5%[9] - The auto eInsurance service revenue rose to $97.8 million in 2025, compared to $73.7 million in 2024, marking an increase of about 32.6%[9] - For the six months ended June 30, 2025, total revenues from external customers reached $222,309 thousand, a 9.5% increase from $203,086 thousand for the same period in 2024[57] - Revenue recognized at a point in time was $197,964 thousand for the six months ended June 30, 2025, compared to $181,198 thousand for the same period in 2024, reflecting an increase of about 9.3%[42] - Revenue recognized over time rose to $24,345 thousand for the six months ended June 30, 2025, from $21,888 thousand in the prior year, marking an increase of approximately 6.7%[42] - Auto eInsurance revenue increased from $73,747 thousand (36% of total revenue) in H1 2024 to $97,833 thousand (44% of total revenue) in H1 2025[159] - Technology service revenue rose from $21,888 thousand (11% of total revenue) in H1 2024 to $24,345 thousand (11% of total revenue) in H1 2025[159] - Auto service revenue decreased from $107,451 thousand (53% of total revenue) in H1 2024 to $100,131 thousand (45% of total revenue) in H1 2025[159] Financial Performance - The net loss attributable to the Company's ordinary shareholders decreased to $7.4 million for the six months ended June 30, 2025, from $62.6 million in the same period of 2024, reflecting a significant improvement[9] - For the six months ended June 30, 2024, SunCar reported a net loss of $60,140 thousand, which improved to a net loss of $5,535 thousand for the same period in 2025, indicating a significant reduction in losses[14] - The company reported a foreign translation currency loss of $97 thousand in 2025, which was an improvement from a loss of $1,195 thousand in 2024[11] - Net loss decreased by $54.6 million to $5.5 million for the six months ended June 30, 2025, with Adjusted EBITDA at $2.5 million, down from $6.0 million[179] Assets and Liabilities - Total current assets increased from $196.3 million as of December 31, 2024, to $223.4 million as of June 30, 2025, an increase of approximately 13.8%[7] - Total assets grew from $246.7 million as of December 31, 2024, to $277.5 million as of June 30, 2025, representing an increase of about 12.4%[7] - The Company’s total shareholders' equity increased from $66.2 million as of December 31, 2024, to $86.1 million as of June 30, 2025, an increase of approximately 30%[7] - Accounts receivable, net rose from $75,605 thousand as of December 31, 2024, to $97,616 thousand as of June 30, 2025, indicating an increase of 29.1%[60] - The allowance for credit losses increased from $21,862 thousand as of June 30, 2024, to $28,631 thousand as of June 30, 2025, reflecting a rise of 30.9%[61] - The Group recognized credit losses of $6,278 thousand for the six months ended June 30, 2025, compared to $2,654 thousand for the same period in 2024, marking an increase of 136.5%[60] Operating Costs - The Company reported a decrease in total operating costs and expenses from $261.7 million in 2024 to $223.5 million in 2025, a reduction of approximately 14.6%[9] - Total operating costs and expenses decreased by 15% from $261.7 million to $223.5 million, primarily due to a reduction in share-based compensation expenses[173] - General and administrative expenses dropped by 63% from $40.5 million to $15.2 million, mainly due to a decrease in share-based compensation[177] - Research and development expenses fell by 95% from $32.2 million to $1.8 million, also due to a reduction in share-based compensation[178] Cash Flow - Cash and cash equivalents decreased from $26.9 million as of December 31, 2024, to $24.3 million as of June 30, 2025[7] - The total cash and restricted cash at the end of the period increased from $23,729 thousand in June 2024 to $27,002 thousand in June 2025, reflecting a positive cash flow trend[14] - Cash used in operating activities for the six months ended June 30, 2024, was $2,625 thousand, which increased to $9,256 thousand in 2025, indicating higher operational expenditures[14] - Net cash used in operating activities for the six months ended June 30, 2025 was US$9.2 million, compared to a net loss of US$5.5 million, with a significant increase in accounts receivable of US$26.6 million[198] Shareholder Equity and Financing - The Company’s additional paid-in capital increased from $208.7 million to $233.7 million, reflecting a growth of approximately 12%[7] - The number of weighted average shares outstanding used in calculating basic and diluted loss per share increased from 93,663,300 in 2024 to 102,155,588 in 2025[9] - The balance of ordinary shares increased from 48,876,493 shares in June 2024 to 59,208,351 shares in June 2025, reflecting ongoing capital raising efforts[11] - The Company has not sold any ordinary shares to GEM Investor as of June 30, 2025, despite having the right to sell up to $125 million of its ordinary shares under the GEM Purchase Agreement[75] - The Company issued 2,839,951 GEM Warrants with an exercise price of $11.50 per share, which are exercisable from May 17, 2023, until the third anniversary of the public listing date[75] Strategic Investments - The acquisition of non-controlling interests resulted in a cash outflow of $2,214 thousand in 2025, reflecting strategic investments in subsidiaries[14] - The company acquired 0.6% equity interest in Shengda Automobile for $2,214, increasing its ownership to 84.6%[102] Tax and Regulatory - The company’s subsidiaries are subject to a 15% enterprise income tax rate as High and New Technology Enterprises, with the status renewed in December 2024[108] - The withholding tax rate for dividends paid by wholly foreign-owned subsidiaries in China to intermediary holding companies in Hong Kong is 10%, potentially reduced to 5% under certain conditions[193] Future Outlook - The company is integrating AI and digital processes into its operations, enhancing customer engagement and cross-selling capabilities[142] - The company anticipates limited inflationary pressure on its operations, with China's inflation rates remaining stable at approximately 2.0%, 0.2%, and 0.2% for the years ended December 31, 2022, 2023, and 2024, respectively[144] - The company may need additional cash resources in the future for investments, acquisitions, or capital expenditures, which could lead to dilution of shareholders or increased fixed obligations[196]