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 revenues were $364 million, up 29% from $282 million in 2022. Our auto service segment reported revenue of $215 million in fiscal year 2023, an increase of 8% from $199 million in fiscal year 2022. The increase was driven by the increase in service orders in 2023. This segment is enabled by SunCar's technology platform, which facilitates auto services, such as car wash, maintenance, driving service, and road assistance. Our auto eInsurance segment generated $118 million in fiscal year 2023, a 75% increase over fiscal year 2022. This growth was driven by an increase in gross premiums written and the number of insurance policies issued compared to the year ended December 31, 2022. Specifically, we experienced over 100% YoY revenue growth driven by our strong relationships with electric vehicle manufacturers, including Tesla (NASDAQ:TSLA), NIO (NYSE:NIO), X Peng (NYSE:XPEV), and Li Auto (NASDAQ:LI), Xiaomi (HKSE: 01810), BYD (HKSE: 01211), Seres Group (SHSE: 601127), ZEEKR, Lotus Technology (NASDAQ:LOT), Leapmotor (HKSE: 09863), JIDU Auto (a joint venture between Baidu (NASDAQ: BIDU) and Geely (HKSE: 0175), and others. Our technology service business generated revenues of $31 million for the year ended December 31, 2023, a 98% increase over 2022. This increase is due to our continuous expansion in new business to acquire more market share and to the increasing adoption of insurance companies of our eInsurance technology. Our net losses were $18 million and $12 million for the year ended December 31, 2023 and 2022, respectively. We continue to strategically invest in technology and business development as we increase our presence with some of the largest enterprise customers in China. Adjusted EBITDA, a non-GAAP metric that excludes certain non-recurring items and non-cash expenses, is useful in evaluating our operational performance in addition to the GAAP metrics. Our Adjusted EBITDA increased by $7.2 million from the year ended December 31, 2022, to a positive $1.6 million in the year ended December 31, 2023. Fiscal Year 2023 Operational Highlights For our auto service business, the Company was working with over 1,400 enterprise clients and over 47,000 auto service providers (compared to 45,000 as of December 31, 2022), covering over 350 cities and all 33 provinces of China. Announced auto service agreements and renewals with China Minsheng Banking Corp., Ltd. (CMBC), Bank of Communications Limited (BoComm), China CITIC Bank, and the Heilongjiang Branch of the Agricultural Bank of China. For our auto eInsurance business, the Company was working with 85 insurance companies (including the top 10 insurance companies with a combined over 90% market share), over 900 insurance company branches, and over 64,000 insurance sales partners (compared to 62,000 in 2022) in China. Announced auto eInsurance agreements and renewals with Tesla (NASDAQ:TSLA), Nio (NYSE:NIO), Li Auto (NASDAQ:LI), XPeng (NYSE:XPEV). Closed our business combination with Goldenbridge Acquisition Limited and listed our shares on the Nasdaq in May 2023. We released Version 7.9.0 of our eInsurance system with new features, including enhanced automatic storage and management of insurance image data. Currently deployed by 18 leading NEV companies, it aims to enhance user experience to the best-in-class in the industry. Management Commentary Ye Zaichang, CEO and Chairman of SunCar commented, "At SunCar, we're leveraging cutting-edge technology to revolutionize the auto services and eInsurance sectors in China, the world's largest and rapidly growing vehicle market. Our cloud-based platform seamlessly connects car owners with a vast array of services and eInsurance options, tapping into a network of over 47,000 service providers and more than 64,000 insurance sales partners nationwide." "In 2023, we achieved a significant revenue increase to $364 million, up 29% from the previous year, demonstrating the strong synergy between our auto services and eInsurance segments. Our robust technology infrastructure propels this success, including seamless API integrations and an AI-powered purchasing process that significantly enhances customer experience. With our strategic focus on the burgeoning electric vehicle sector and partnerships with top EV manufacturers, we are uniquely positioned to drive continued growth and innovation in this dynamic industry." "I extend my heartfelt thanks to our team, partners, and shareholders for their unwavering support as we move forward with our vision to transform automotive service and insurance in China." CONFERENCE CALL & AUDIO WEBCAST 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. To access the call by phone, please dial 1-877-407-0752 (international callers please dial 1-201-389-0912) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at https://viavid.webcasts.com/starthere.jsp?ei=1668638&tp_key=73879e5f16. A webcast replay will also be available for a limited time at the following link: https://viavid.webcasts.com/starthere.jsp?ei=1668638&tp_key=73879e5f16. About SunCar Technology Group Inc. Originally founded in 2007, SunCar is transforming the customer journey for auto services and auto insurance in China, the largest passenger vehicle market in the world. SunCar develops and operates cloud-based platforms that seamlessly connect drivers with a wide range of auto services and insurance coverage options through a nationwide network of sales partners. As a result, SunCar has established itself as the leader in China in the B2B auto services market and the auto eInsurance market for electric vehicles. The Company's multi-tenant, cloud-based platform empowers its enterprise clients to access and manage their customer database and offerings optimally, and drivers gain access to hundreds of services from tens of thousands of independent providers in a single application. For more information, please visit: https://suncartech.com.  Forward-Looking Statements This press release contains information about the Company's view of its future expectations, plans and prospects that constitute forward-looking statements. Actual results may differ materially from historical results or those indicated by these forward-looking statements as a result of a variety of factors including, but not limited to, risks and uncertainties associated with its ability to raise additional funding, its ability to maintain and grow its business, variability of operating results, its ability to maintain and enhance its brand, its development and introduction of new products and services, the successful integration of acquired companies, technologies and assets into its portfolio of products and services, marketing and other business development initiatives, competition in the industry, general government regulation, economic conditions, dependence on key personnel, the ability to attract, hire and retain personnel who possess the technical skills and experience necessary to meet the requirements of its clients, and its ability to protect its intellectual property. The Company encourages you to review other factors that may affect its future results in the Company's annual reports and in its other filings with the Securities and Exchange Commission. Contact Information:SunCar:Investor Relations: Ms. Hui JiangEmail: Ms. Li ChenEmail: U.S. Investor RelationsMatthew Abenante, IRCPresidentStrategic Investor Relations, LLCTel: 347-947-2093Email: *** tables follow *** SUNCAR TECHNOLOGY GROUP INC CONSOLIDATED BALANCE SHEETS (In U.S. Dollar thousands, except for share and per share data, or otherwise noted) As of December 31, 2022 2023 ASSETS Current assets Cash $ 21,200 $ 30,854 Restricted cash 2,717 2,741 Short-term investments 26,544 21,596 Accounts receivable, net 85,619 56,043 Prepaid expenses and other current assets, net 9,270 63,963 Total current assets 145,350 175,197 Non-current assets Long-term investment 290 282 Software and equipment, net 18,491 22,466 Deferred tax assets, net 13,070 11,998 Other non-current assets 14,423 12,012 Right-of-use assets 344 1,280 Total non-current assets 46,618 48,038 TOTAL ASSETS $ 191,968 $ 223,235 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Short-term loan $ 74,653 $ 83,029 Accounts payable 24,200 26,641 Deferred revenue 3,569 3,050 Tax payables 2,042 1,364 Accrued expenses and other current liabilities 4,849 4,809 Amount due to a related party, current 45,564 4,751 Operating lease liability, current 315 748 Total current liabilities 155,192 124,392 Non-current liabilities Operating lease liability, non-current - 504 Amount due to a related party, non-current - 29,688 Warrant liabilities - 661 Total non-current liabilities - 30,853 Total liabilities $ 155,192 $ 155,245 Shareholders'(deficit)/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, 2022 and 2023, respectively; 31,971,435 and 39,876,493 Class AOrdinary shares issued and outstanding as of December 31, 2022 and 2023, respectively) $ 3 $ 4 Class B Ordinary shares* (par value of US$0.0001 per share; 100,000,000 Class B Ordinary shares authorized as of December 31, 2022 and 2023, respectively; 49,628,565 and 49,628,565 Class B Ordinary shares issued and outstanding as of December 31, 2022 and2023, respectively) 5 5 Additional paid in capital 95,764 144,160 Accumulated deficit (99,580) (129,724) Accumulated other comprehensive loss (1,476) (1,367) Total SUNCAR TECHNOLOGY GROUP INC's shareholders' (deficit)/equity (5,284) 16,078 Non-controlling interests 42,060 51,912 Total equity 36,776 67,990 TOTAL LIABILITIES AND EQUITY $ 191,968 $ 223,235     SUNCAR TECHNOLOGY GROUP INC CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In U.S. Dollar thousands, except for share and per share data, or otherwise noted) For the year ended December 31, 2021 2022 2023 Revenues Auto service $ 187,880 $ 199,294 $ 214,979 Auto eInsurance 56,766 67,640 118,109 Technology service 4,589 15,479 30,658 Total revenues 249,235 282,413 363,746 Operating cost and expenses Integrated service cost (156,852) (166,793) (209,553) Promotional service expenses (55,222) (65,500) (112,504) Selling expenses (12,731)