UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE

SECURITIES EXCHANGE ACT OF 1934

For the month of October 2025

Commission File Number: 001-41706

SunCar Technology Group Inc.

(Translation of registrant’s name into English)

c/o Shanghai Feiyou Trading Co., Ltd.

Suite 209, No. 656 Lingshi Road

Jing’an District, Shanghai, 200072

People’s Republic of China

Tel: (86) 138-1779-6110

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒ Form 40-F ☐

SunCar Technology Group Inc. (the “Company”) furnishes under the cover of Form 6-K the following:

SUNCAR TECHNOLOGY GROUP INC

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

CONTENTS		PAGE(S)

CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND JUNE 30, 2025 (UNAUDITED)		F-2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025		F-3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025		F-4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025		F-5

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS		F-6

F-1

SUNCAR TECHNOLOGY GROUP INC

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

	As of December 31, 2024			As of June 30, 　2025

ASSETS
Current assets
Cash	$	26,865		$	24,305
Restricted cash		2,647			2,697
Short-term investments		20,985			21,396
Accounts receivable, net		75,605			97,616
Prepaid expenses and other current assets, net		70,171			77,363
Total current assets		196,273			223,377

Non-current assets
Long-term investment		274			279
Property, software and equipment, net		27,664			25,604
Deferred tax assets, net		10,453			11,258
Other non-current assets		11,458			16,652
Operating lease right-of-use assets		606			359
Total non-current assets		50,455			54,152

TOTAL ASSETS	$	246,728		$	277,529

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term loan	$	83,597		$	83,059
Accounts payable		56,812			76,506
Deferred revenue		2,421			2,142
Tax payable		1,361			1,913
Accrued expenses and other current liabilities		5,792			6,672
Amount due to related parties, current		6,238			6,524
Operating lease liability, current		544			258
Total current liabilities		156,765			177,074

Non-current liabilities
Operating lease liability, non-current		21			32
Amount due to a related party, non-current		22,761			13,330
Warrant liabilities		947			947
Total non-current liabilities		23,729			14,309

Total liabilities	$	180,494		$	191,383

Commitments and contingencies (Note 17)

Shareholders’ equity
Class A Ordinary shares (par value of US$0.0001 per share; 400,000,000 Class A Ordinary shares authorized as of December 31, 2024 and June 30, 2025, respectively; 51,845,493 and 51,645,493 Class A Ordinary shares issued and outstanding as of December 31, 2024, respectively; 59,208,351 and 55,569,794 Class A Ordinary shares issued and outstanding as of June 30, 2025, respectively)	$	5		$	6
Class B Ordinary shares (par value of US$0.0001 per share; 100,000,000 Class B December 31, 2024 and June 30, 2025, respectively; 46,659,565 and 46,439,565 Class B Ordinary shares issued and outstanding as of December 31, 2024 and June 30, 2025, respectively)		5			5
Additional paid in capital		208,701			233,650
Accumulated deficit		(195,387	)		(202,781	)
Accumulated other comprehensive loss		(1,432	)		(1,529	)
Total SUNCAR TECHNOLOGY GROUP INC’s shareholders’ equity		11,892			29,351
Non-controlling interests		54,342			56,795
Total shareholders’ equity		66,234			86,146

TOTAL LIABILITIES AND SHARESHOLDERS’ EQUITY	$	246,728		$	277,529

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-2

SUNCAR TECHNOLOGY GROUP INC

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

	For the six months ended June 30,
	2024			2025

Revenues
Auto eInsurance service	$	73,747		$	97,833
Technology service		21,888			24,345
Auto service		107,451			100,131
Total revenues		203,086			222,309

Operating cost and expenses
Integrated service cost		(107,621	)		(101,464	)
Promotional service expenses		(71,135	)		(94,072	)
Selling expenses		(10,199	)		(11,012	)
General and administrative expenses		(40,537	)		(15,188	)
Research and development expenses		(32,205	)		(1,766	)
Total operating costs and expenses		(261,697	)		(223,502	)

Operating loss		(58,611	)		(1,193	)

Other expenses
Financial expenses, net		(2,302	)		(2,077	)
Investment income		306			246
Other income/(expenses), net		734			(2,220	)
Total other expenses, net		(1,262	)		(4,051	)

Loss before income tax expense		(59,873	)		(5,244	)
Income tax expense		(267	)		(291	)
Net loss		(60,140	)		(5,535	)

Less: Net income attributable to non-controlling interests		2,443			1,859
Net loss attributable to the Company’s ordinary shareholders		(62,583	)		(7,394	)

Net loss per ordinary share
Basic and diluted	$	(0.67	)	$	(0.07	)

Weighted average shares outstanding used in calculating basic and diluted loss per share
Basic and diluted		93,663,300			102,155,588

Other comprehensive loss
Foreign currency translation difference		(1,195	)		1,048
Total other comprehensive loss/(income)		(1,195	)		1,048

Total comprehensive loss		(61,335	)		(4,487	)
Less: total comprehensive income attributable to non-controlling interest		1,164			3,004
Total comprehensive loss attributable to the SUNCAR TECHNOLOGY GROUP INC’s shareholders	$	(62,499	)	$	(7,491	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-3

SUNCAR TECHNOLOGY GROUP INC

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

	Class A Ordinary Shares				Class B Ordinary Shares					Treasury shares					Additional paid-in			Accumulated			Accumulated other comprehensive			Total SunCar Technology Group Inc’s shareholders’			Non-controlling			Total shareholders’
	Share		Amount		Share			Amount		Share			Amount		capital			deficit			loss			equity			interests				equity
Balance as of December 31, 2023		40,076,493	$	4		49,628,565		$	5		(200,000	)		-		144,160		$	(126,724	)	$	(1,367	)	$	16,078		$	51,912		$	67,990
Net (loss)/profit		-		-		-			-		-			-		-			(62,583	)		-			(62,583	)		2,443			(60,140	)
Share-based compensation		8,800,000		1		-			-		-			-		62,039			-			-			62,040			745			62,785
Foreign currency translation		-		-		-			-		-			-		-			-			84			84			(1,279	)		(1,195	)
Balance as of June 30, 2024		48,876,493	$	5		49,628,565		$	5		(200,000	)		-		206,199		$	(189,307	)	$	(1,283	)	$	15,619		$	53,821		$	69,440

Balance as of December 31, 2024		51,845,493		5		46,659,565			5		(200,000	)		-		208,701			(195,387	)		(1,432	)		11,892			54,342			66,234
Net (loss)/profit		-		-		-			-		-			-		-			(7,394	)		-			(7,394	)		1,859			(5,535	)
Share-based compensation		-		-		-			-		-			-		-			-			-			-			742			742
Issuance of ordinary shares, net of offering costs		7,142,858		1		-			-		-			-		41,630			-			-			41,631			-			41,631
Shares transfer from Class B ordinary shares to Class A ordinary shares		220,000		-		(220,000	)		-		-			-		-			-			-			-			-			-
Shares repurchase		-		-		-			-		(3,438,557	)		-		(15,760	)		-			-			(15,760	)		-			(15,760	)
Acquisition of non-controlling interests		-		-		-			-		-			-		(921	)		-			-			(921	)		(1,293	)		(2,214	)
Foreign currency translation		-		-		-			-		-			-		-			-			(97	)		(97	)		1,145			1,048
Balance as of June 30, 2025		59,208,351	$	6		46,439,565		$	5		(3,638,557	)		-		233,650		$	(202,781	)	$	(1,529	)	$	29,351		$	56,795		$	86,146

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-4

SUNCAR TECHNOLOGY GROUP INC

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In U.S. Dollar thousands, except for share and per share data, or otherwise noted)

	For the six months ended June 30,
	2024			2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(60,140	)	$	(5,535	)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for credit losses		2,654			6,278
Depreciation and amortization		1,813			2,978
Amortization of right-of-use assets		392			430
Loss on disposal of property, software and equipment		12			3
Deferred income tax benefit		(750	)		(599	)
Financing expense related to issuance of GEM Warrants		303			300
Accrued liability for GEM litigation		-			2,811
Share-based compensation of subsidiary		745			742
Share-based compensation of the Group		62,040			-
Fair value income from short-term investments		(493	)		-
Interest expense		146			-
Changes in operating assets and liabilities:
Accounts receivable		(24,689	)		(26,603	)
Prepaid expenses and other current assets		(7,492	)		(6,121	)
Accounts payable		26,277			18,389
Deferred revenue		(1,029	)		(320	)
Accrued expenses and other current liabilities		(2,458	)		(2,050	)
Tax payable		365			519
Operating lease liabilities		(321	)		(369	)
Amount due to related parties		-			(109	)
Total net cash used in operating activities		(2,625	)		(9,256	)

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, software and equipment		(245	)		(23	)
Proceeds from disposal of property, software and equipment		-			1
Purchase of short-term investment		(20,603	)		(246	)
Proceeds from the redemption of short-term investment		21,283			233
Acquisition of non-controlling interests		-			(2,214	)
Purchase of other non-current assets		(7,725	)		(5,362	)
Total net cash used in investing activities		(7,290	)		(7,611	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term loan		56,979			52,119
Repayments of short-term loan		(56,771	)		(54,215	)
Repayments of payables to a related party		-			(9,798	)
Shares repurchase		-			(15,760	)
Proceeds from issuance of ordinary shares, net of issuance cost		-			41,631
Total net cash provided by financing activities		208			13,977

Effect of exchange rate changes		(159	)		380

Net change in cash and restricted cash		(9,866	)		(2,510	)

Cash and restricted cash, beginning of the period	$	33,595		$	29,512
Cash and restricted cash, end of the period	$	23,729		$	27,002

Reconciliation of cash and restricted cash to the unaudited condensed consolidated balance sheets:
Cash	$	20,886		$	24,305
Restricted cash	$	2,843		$	2,697
Total cash and restricted cash	$	23,729		$	27,002

Supplemental disclosures of cash flow information:
Income tax paid	$	535		$	371
Interest expense paid	$	1,872		$	1,757

Supplemental disclosures of non-cash flow information:
Obtaining right-of-use assets in exchange for operating lease liabilities	$	88		$	87
Prepaid financing expense related to issuance of GEM Warrants	$	1,138		$	534

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

F-5

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

1.	ORGANIZATION AND PRINCIPAL ACTIVITIES

Auto Services Group Limited (“SunCar”) was incorporated under the laws of the British Virgin Islands (“BVI”) on September 19, 2012 and continued in the Cayman Islands in accordance with applicable laws.

On May 23, 2022, SunCar entered into the Agreement and Plan of Merger (“Merger Agreement”) with Goldenbridge Acquisition Limited (“Goldenbridge”), SunCar Technology Group Inc. (“SunCar Technology”, or the “Company”), and SunCar Technology Global Inc (the “Merger Sub”), a Cayman Islands exempted company and wholly owned subsidiary of SunCar Technology.

Pursuant to the Merger Agreement, at the closing of the transactions (the “Business Combination”, or the “Transaction”) contemplated by the Merger Agreement (the “Closing”), (i) Goldenbridge was merged with and into SunCar Technology, the separate corporate existence of Goldenbridge ceasing and SunCar Technology continuing as the surviving corporation; (ii) the Merger Sub was merged with and into SunCar, the Merger Sub ceasing and SunCar continuing as the surviving company.

The Company, through its wholly-owned subsidiaries (collectively, the “Group”) primarily engages in providing auto eInsurance service, technology service and auto service in the People’s Republic of China (“PRC” or “China”).

Sun Car Online Insurance Agency Co., Ltd. (“SunCar Online”) was incorporated under the laws of PRC on December 5, 2007, and along with its subsidiaries, are the Group’s main operating entities in China.

Reverse recapitalization

On May 17, 2023 (the “Closing Date”), Goldenbridge and SunCar Technology consummated the closing of the Transaction of Goldenbridge and SunCar Technology, following the approval at a Special Meeting of the shareholders on April 14, 2023. Following the consummation of the Transaction, Goldenbridge as a wholly-owned subsidiary of SunCar Technology and the outstanding shares of Goldenbridge being converted into the right to receive shares of SunCar Technology, the combined company will retain the SunCar Technology name.

SunCar was determined to be the accounting acquirer given it effectively controlled the combined entity after the Transaction. The Transaction is not a business combination because Goldenbridge was not a business. The Transaction is accounted for as a reverse recapitalization, which is equivalent to the issuance of shares by SunCar for the net monetary assets of the Company, accompanied by a recapitalization. SunCar is determined as the accounting acquirer and the historical financial statements of SunCar became the Company’s historical financial statements, with retrospective adjustments to give effect of the reverse recapitalization. All of the Ordinary Shares and Convertible Preferred Shares of SunCar that were issued and outstanding immediately prior to the Transaction were cancelled and converted into an aggregate of 31,971,435 Class A ordinary shares and 49,628,565 Class B ordinary shares, which has been restated retrospectively to reflect the equity structure of the Company. The par value of ordinary shares changed from $0.00005 to $0.0001, the difference of $3 was adjusted retrospectively as in addition paid-in capital as of December 31, 2022.

F-6

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

As of June 30, 2025, SunCar’s major subsidiaries are as follows:

Name	Date of Incorporation	Place of Incorporation	Percentage of Effective Ownership	Principal Activities
Sun Car Online Insurance Agency Co., Ltd. (“SUNCAR Online”)	December 5, 2007	PRC	56.33%	Auto eInsurance service
Shanghai Feiyou Trading Co., Limited (“Shanghai Feiyou”)	June 11, 2009	PRC	100.00%	Technology services
Shanghai Xuanbei Automobile Service Co., Limited (“Shanghai Xuanbei”)	April 26, 2018	PRC	100.00%	Auto service
Shanghai Shengshi Dalian Automobile Service Co., Limited (“Shengda Automobile”)	June 8, 2013	PRC	84.58%	Auto service
Haiyan Trading (Shanghai) Co., Limited (“Haiyan”)	November 22, 2012	PRC	100.00%	Holding company

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a).

Basis of presentation

The accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) for interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. The accompanying unaudited condensed financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the years ended December 31, 2023 and 2024.

The unaudited condensed consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances among the Company and its subsidiaries have been eliminated upon consolidation. For consolidated subsidiaries where the Group’s ownership in the subsidiary is less than 100%, the equity interest not held by the Group is shown as non-controlling interests.

(b).

Use of estimates

The preparation of the unaudited condensed consolidated financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities at the balance sheet date, and the reported revenues and expenses during the reported periods in the unaudited condensed consolidated financial statements and accompanying notes. Significant accounting estimates include, but not limited to, the allowance for credit losses, useful lives and impairment of long-lived assets, valuation allowances of deferred tax assets, and warrant liabilities. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the unaudited condensed consolidated financial statements.

F-7

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

(c).

Accounts receivable, net

Accounts receivable, net are stated at the original amount less allowances for credit losses. Accounts receivable are recognized in the period when the Group has provided services to its customers and when its right to consideration is unconditional. The Group adopted ASC Topic 326, Financial Instruments-Credit Losses (Topic 326) and assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on similar business lines, and on an individual basis when the Group identifies specific customers with known disputes or collectability issues. In determining the amount of the allowance for credit losses, the Group considers historical collectability based on past due status, the age of the accounts receivable balances, credit quality of the Group’s customers based on ongoing credit evaluations, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect the Group’s ability to collect from customers.

(d).

Warrant

The Group accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, “Distinguishing Liabilities from Equity” (“ASC 480”) and ASC 815, “Derivatives and Hedging” (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of equity at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded as liabilities at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the Private Warrants was estimated using a Black-Scholes model.

(e).

Fair value measurement

Accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Group considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

Accounting guidance establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs are:

●

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

	●	Level 2—Include other inputs that are directly or indirectly observable in the marketplace.

	●	Level 3—Unobservable inputs which are supported by little or no market activity.

F-8

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

Accounting guidance also describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

Financial assets and liabilities of the Group primarily consist of cash, accounts receivable, short-term investments, other receivables included in prepayments and other current assets, long-term investment, short-term borrowings, accounts payable, other payables included in accrued expenses and other current liabilities, and warrant liabilities. As of December 31, 2024 and June 30, 2025, the carrying amounts of other financial instruments approximated to their fair values due to the short-term maturity of these instruments. The warrant liabilities were measured at fair value using unobservable inputs and categorized in Level 3 of the fair value hierarchy.

The Group’s non-financial assets, such as property, software and equipment, would be measured at fair value only if they were determined to be impaired.

(f).

Revenue recognition

The Group’s revenues are mainly generated from providing auto eInsurance service, technology service and auto service.

The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by Value Added Tax (“VAT”). To achieve the core principle of this standard, we applied the following five steps:

	1.	Identification of the contract, or contracts, with the customer;

	2.	Identification of the performance obligations in the contract;

	3.	Determination of the transaction price;

	4.	Allocation of the transaction price to the performance obligations in the contract; and

	5.	Recognition of the revenue when, or as, a performance obligation is satisfied.

Auto eInsurance Service

The Group provides auto eInsurance service distributing primarily vehicle insurance on behalf of the insurance companies and charges insurance companies for intermediation service commissions. The commissions are determined as a percentage of premiums paid by the insured. Auto eInsurance services are considered to be rendered and completed, and revenue is recognized, at the time an insurance policy becomes effective, that is, when the signed insurance policy is in place and the premium is collected from the insured. The Group has satisfied the performance obligation to recognize revenue when the premiums are collected by the respective insurance companies and not before, because collectability is not ensured until receipt of the premium. Accordingly, the Group does not accrue any auto eInsurance service commission and fees prior to the receipt of the related premiums. No allowance for cancellation has been provided for intermediation services as cancellation of policies rarely occurs.

Technology service

The Group provides technology service including technical software and consulting related to automobile services and insurance, such as customer relationship management (CRM), order management, finance management and visual analysis systems. The Group charges service fee based on fixed price per month for service provided, and recognizes revenue over time during the service period.

F-9

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

Auto service

The Group defines enterprise customers as the Group’s customers and the Group sells auto service coupons to enterprise customers, which each coupon represents one specific auto service. There are various service types including vehicle washing, waxing, maintenance, driving service and road assistance, and the Group only provides one specific service among various service types for each specific service coupon. The Group identifies each specific service coupon as a contract that establishes enforceable rights and obligations for each party. The Group charges the service fee at a fixed price per service when the service is performed. For service coupons with limited duration, the Group either charges the service fee at a fixed price per service when the service is performed or when the coupon expires, whether or not the service has been performed. The Group considers each service coupon is a distinct service that is capable of providing a benefit to the customer on its own according to ASC 606-10-25-14(a). Therefore, the Group identifies only one performance obligation under a contract, which is to provide a specific service or to stand-ready to perform a specific service within a limited duration. The Group acts as a principal as the Group controls the right to services before the services are provided to customers and the Group has the ability to direct other parties to provide the services to customers on the Group’s behalf. Specifically, the Group has the ability to choose service providers, is primarily responsible for the acceptability for the service meeting customer specifications, bears inventory risk after transfer of control of services to customers, and has the discretion in establishing the price with customers and with service providers and bears credit risk. The Group recognizes revenue in the gross amount of consideration at a point of time when the service is provided, or when the service coupon expires. The Group does not provide refunds to customers when a coupon has expired but not used.

The Group’s revenues are disaggregated by timing of revenue recognition as follows:

	For the six months ended June 30,
	2024		2025
Revenue recognized at a point of time	$	181,198	$	197,964
Revenue recognized over time		21,888		24,345
Revenues	$	203,086	$	222,309

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to customers. Accounts receivable represent revenue recognized for the amounts invoiced and/or prior to invoicing when the Group has satisfied its performance obligation and has an unconditional right to the payment. Contract assets represent the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer. The Group has no contract assets as of December 31, 2024 and June 30, 2025.

The contract liabilities consist of deferred revenue, which represents the billings or cash received for services in advance of revenue recognition and is recognized as revenue the performance obligation is satisfied. The Group’s deferred revenue amounted to $2,421 and $2,142 as of December 31, 2024 and June 30, 2025, respectively. During the six months ended June 30, 2024 and 2025, the Group recognized $3,050 and $2,026 that was included in deferred revenue balance at January 1, 2024 and 2025, respectively.

F-10

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

(g).

Share-based compensation

The Group grants restricted share units (“RSUs”) of the Company and its subsidiary, SunCar Online, to eligible employees and management. The Group accounts for share-based awards issued to employees and non-employees in accordance with ASC Topic 718 Compensation – Stock Compensation. The Group recognizes compensation cost for an equity classified award using the straight-line method over the applicable vesting period based on the fair value of restricted shares granted on the date of the grant. Awards of subsidiary equity is recognized in “non-controlling interest” in the consolidated entity.

The consideration for the business combination closed on May 17, 2023 included totally 4,800,000 earnout shares (“Earnout Shares”) granted to the management upon the achievement of revenue targets in 2022, 2023 and 2024. Earnout Shares in 2022 was accounted for as part of the consideration of the business combination. The Group recognizes Earnout Shares in 2023 and 2024 for an equity classified award using the graded vesting method over the applicable vesting period based on the fair value of the Earnout Shares on the grant date.

(h).

Foreign currency transactions and translations

The Group’s principal country of operations is the PRC. The financial position and results of its operations are determined using RMB, the local currency, as the functional currency. The Group’s financial statements are reported using U.S. Dollars (“$”). The results of operations and the unaudited condensed consolidated statements of cash flows denominated in foreign currency are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based on the average translation rate, amounts related to assets and liabilities reported on the unaudited condensed consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the unaudited condensed consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss) included in unaudited condensed consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the results of operations.

The value of RMB against $ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s political and economic conditions. Any significant revaluation of RMB may materially affect the Group’s financial condition in terms of $ reporting. The following table outlines the currency exchange rates that were used in creating the unaudited condensed consolidated financial statements:

As of December 31,

As of

June 30,

2024

2025

Balance sheet items, except for equity accounts

7.2993

7.1636

	For the six months ended June 30,
	2024		2025
Items in the statements of operations and comprehensive loss, and statements of cash flows		7.2150		7.2526

No representation is made that the RMB amounts could have been, or could be, converted into U.S. dollars at the rates used in translation.

F-11

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

(i).

Recent accounting pronouncements

The Group is an “emerging growth company” (“EGC”) as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, EGC can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies.

In November 2023, the FASB issued ASU 2023-07, which modifies the disclosure and presentation requirements of reportable segments. The new guidance requires the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit and loss. In addition, the new guidance enhances interim disclosure requirements, clarifies circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The update is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Group has adopted ASU2023-07 for annual periods beginning from January 1, 2024 (See Note 3).

In December 2023, the FASB issued ASU 2023-09, Improvement to Income Tax Disclosure. This standard requires more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. This standard also includes certain other amendments to improve the effectiveness of income tax disclosures. ASU 2023-09 is effective for public business entities, for annual periods beginning after December 15, 2024. For entities other than public business entities, the amendments are effective for annual periods beginning after December 15, 2025. The Group is in the process of evaluation the impact of adopting this new guidance on its consolidated financial statement.

In November 2024, the FASB issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued Accounting Standards Update No. 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for us for our annual reporting for fiscal 2028 and for interim period reporting beginning in fiscal 2029 on a prospective basis. Both early adoption and retrospective application are permitted. The Group is currently evaluating the impact that the adoption of these standards will have on its consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU 2024-04, Debt–Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversion of Convertible Debt Instruments (“ASU 2024–04”), which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06. The Group is in the process of evaluation the impact of adopting this new guidance on its consolidated financial statement.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers (“ASC 606”) by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for the Group for its for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Group is currently evaluating the impact ASU 2025-05 will have on its consolidated financial statements.

Other accounting standards that have been issued by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Group does not discuss recent standards that are not anticipated to have an impact on or are unrelated to its consolidated financial condition, results of operations, cash flows or disclosures.

F-12

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

3.	SEGMENT INFORMATION

The CODM reviews financial information of operating segments based on internal management report when making decisions about allocating resources and assessing the performance of the Group. As a result of the assessment made by CODM, the Group has four reportable segments, including auto eInsurance business, technology service and auto service business. The Group’s CODM evaluates performance based on the operating segment’s revenue and their operating results. The revenue and operating results by segments were as follows:

	For the six months ended June 30, 2025
	Auto eInsurance service			Technology service			Auto service			Others			Consolidated
Revenues from external customers	$	97,833		$	24,345		$	100,131		$	-		$	222,309
Operating cost and expenses
Integrated service cost		-			(12,582	)		(88,882	)		-			(101,464	)
Promotional service and selling expenses		(95,556	)		(6,559	)		(2,969	)		-			(105,084	)
General and administrative expenses		(2,376	)		(511	)		(10,325	)		(1,976	)		(15,188	)
Research and development expenses		(328	)		(465	)		(973	)		-			(1,766	)
Total operating costs and expenses		(98,260	)		(20,117	)		(103,149	)		(1,976	)		(223,502	)
Total other income/(expenses), net ⁽¹⁾		57			(110	)		(939	)		(3,059	)		(4,051	)
Segment (loss)/income before tax	$	(370	)	$	4,118		$	(3,957	)	$	(5,035	)	$	(5,244	)

	For the six months ended June 30, 2024
	Auto einsurance service			Technology service			Auto service			Others			Consolidated
Revenues from external customers	$	73,747		$	21,888		$	107,451		$	-		$	203,086
Operating cost and expenses
Integrated service cost		-			(13,586	)		(94,035	)		-			(107,621	)
Promotional service and selling expenses		(71,124	)		(7,780	)		(2,430	)		-			(81,334	)
General and administrative expenses		(2,274	)		(1,146	)		(4,933	)		(32,184	)		(40,537	)
Research and development expenses		(30	)		(144	)		(1,011	)		(31,020	)		(32,205	)
Total operating costs and expenses		(73,428	)		(22,656	)		(102,409	)		(63,204	)		(261,697	)
Total other expenses, net ⁽¹⁾		(218	)		(143	)		(598	)		(303	)	$	(1,262	)
Segment income/(loss) before tax	$	101		$	(911	)	$	4,444		$	(63,507	)	$	(59,873	)

(1)	Included net of financial expenses, investment income and others.

F-13

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

The total assets by segments as of December 31, 2024 and as of June 30, 2025 were as follows:

	As of December 31,		As of June 30,
	2024		2025
Segment assets
Auto eInsurance service	$	56,769	$	73,398
Technology service		39,391		28,919
Auto service		148,630		170,973
Others		1,938		4,239
Total segment assets	$	246,728	$	277,529

4.	ACCOUNTS RECEIVABLE, NET

Accounts receivable, net consisted of the following:

	As of December 31,			As of June 30,
	2024			2025
Accounts receivable	$	97,467		$	126,247
Allowance for credit losses		(21,862	)		(28,631	)
Accounts receivable, net	$	75,605		$	97,616

The Group recognized credit losses of $2,654 and $6,278 for the six months ended June 30, 2024 and 2025.

The movement of allowance for credit losses for the six months ended June 30, 2024 and 2025 were as following:

	For the six months ended June 30,
	2024			2025
Balance at the beginning of the period	$	21,144		$	21,862
Additions		2,654			6,278
Foreign currency translation		(506	)		491
Balance at the end of the period	$	23,292		$	28,631

F-14

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

5.	PREPAID EXPENSES AND OTHER CURRENT ASSETS, NET

Prepayments and other current assets, net consisted of the following:

	As of December 31,			As of June 30,
	2024			2025
Advances to suppliers	$	65,753		$	69,672
Securities margin ⁽¹⁾		-			3,038
Value-added tax (“VAT”) receivables		2,301			2,532
Receivables from third parties ⁽²⁾		1,000			1,000
Prepaid financing expense ⁽³⁾		835			534
Others		412			757
Prepaid expenses and other current assets		70,301			77,533
Allowance for credit losses		(130	)		(170	)
Prepaid expenses and other current assets, net	$	70,171		$	77,363

(1)

On April 21 and May 15, 2025, Shanghai Cuhong Auto Services Co., Ltd. (“Shanghai Cuhong”), a subsidiary of the Company, provided cash collateral of RMB14.6 million (approximately $2.0 million) and RMB7.2 million (approximately $1.0 million) respectively, to Beijing Youhu Business Services Co., Ltd. (“Youhu”) under a guarantee agreement. The collateral was intended to secure margin loan obligations of Shanghai Cuhong’s affiliates with Youhu’s related entities, Tiger Brokers (NZ) Limited and Tiger Brokers (HK) Global Limited. The amount is refundable upon fulfillment of the margin requirements by the related affiliates.

(2)	It represented advance to the employees for Company’s daily operation.

(3)	It represented prepaid financing expense related to issuance of GEM Warrants (See Note 10).

The Group assessed the collectability of prepayments and other current assets, and did not record credit losses for the six months ended June 30, 2024 and 2025, respectively. The movement of allowance for credit losses for the six months ended June 30, 2024 and 2025 were as following:

	For the six months ended June 30,
	2024			2025
Balance at the beginning of the period	$	172		$	130
Foreign currency translation		(38	)		40
Balance at the end of the period	$	134		$	170

F-15

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

6.	PROPERTY, SOFTWARE AND EQUIPMENT, NET

Property, software and equipment, net, consisted of the following:

	As of December 31,			As of June 30,
	2024			2025
Cost
Computer software ⁽ⁱ⁾	$	31,534		$	32,132
Electronic equipment		13,210			13,477
Vehicles		828			843
Building		691			705
Office equipment and furniture		184			188
Leasehold improvements		22			-
Subtotal		46,469			47,345
Less: accumulated depreciation		(18,805	)		(21,741	)
Property, software and equipment, net	$	27,664		$	25,604

(i)

From 2022 onwards, part of hybrid cloud platform developed with the assistance of a third-party cloud service provider were progressively completed and deemed substantially ready for use, and transferred from other non-current assets. Cost of hybrid cloud platform represents the purchase price of the platform and other expenditures incurred to bring the platform into its intended use. The application of the hybrid cloud platform was to improve the IT development capability for internal-used software platforms which provide auto eInsurance service and auto service to customers, and Software-As-A-Service (“SaaS”) products which are provided to business partners as technology services.

Depreciation and amortization expense was $1,813 and $2,531 for the six months ended June 30, 2024 and 2025, respectively.

During the six months ended June 30, 2024 and 2025, the Group recorded no impairment loss of property, software and equipment.

7.	OTHER NON-CURRENT ASSETS

Other non-current assets, consisted of the following:

	As of December 31,		As of June 30,
	2024		2025
Other cloud infrastructure	$	11,458	$	11,675
Prepaid expense for cloud infrastructure support		-		5,429
Less: accumulated amortization		-		(452	)
Other non-current assets, net	$	11,458	$	16,652

(i)

Other non-current assets primarily consisted of other cloud infrastructure under construction, which was not available for use as of June 30, 2025 and expected to be completed in the first quarter of 2026.

(ii)

In the first half of 2025, the Group paid RMB38.9 million (approximately $5.4 million) for cloud infrastructure support, which would be amortized over 3 years based on the service agreements. For the six months ended June 30, 2024 and 2025, amortization expense was nil and $447.

F-16

SUNCAR TECHNOLOGY GROUP INC

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In U.S. Dollar thousands, except share and per share data)

8.	ACCRUED EXPENSES AND OTHER LIABILITIES

Accrued expenses and other liabilities consisted of the following:

	As of December 31,		As of June 30,
	2024		2025
Contingent liabilities of GEM dispute ⁽ⁱ⁾		-		2,811
Project deposits		3,904		1,545
Payroll payable		717		749
Value added taxes and other taxes payable		370		705
Subscription amount received for unvested restricted shares		288		293
Other accrued expenses		513		569
Total accrued expenses and other liabilities	$	5,792	$	6,672

(i)

In an arbitration proceeding held in New York involving GEM Global Yield LLC SCS and GEM Yield Bahamas Limited (collectively, “GEM”), which sought monetary damages against Auto Services Group Limited (“ASGL”) concerning an alleged breach of contractual obligations, the arbitration tribunal issued an award at the end of April, 2025 (the “Award”). The Award requires ASGL to pay GEM $2.8 million plus simple interest at 9% per annum. GEM filed an application to convert the Award to a money judgment on May 9, 2025, which is currently pending enforcement. As of June 30, 2025 and the issuance date of the consolidated financial statements, this amount remains outstanding.

9.	LEASES

The Group has entered into operating lease agreements for certain offices, which are located in PRC. The Group determines if an arrangement is a lease, or contains a lease, at inception and record the leases in the consolidated financial statements upon lease commencement, which is the date when the lessor makes the underlying asset available for use by the lessee.

The balances for the operating leases where the Group is the lessee are presented as follows within the consolidated balance sheets:

	As of December 31,		As of June 30,
	2024		2025
Operating lease right-of-use assets, net	$	606	$	359

Lease liabilities, current	$	544	$	258
Lease liabilities, non-current		21

SEC Form 6-K filed by SunCar Technology Group Inc.