NEW YORK, Sept. 28, 2023 (GLOBE NEWSWIRE) -- SunCar Technology Group Inc. (“SunCar” or the “Company”) ( SDA), a leading provider of digitalized enterprise automotive after-sales services and online auto insurance intermediation service in China, today announced its unaudited financial results for the six months ended June 30, 2023.
Six months ended June 30, 2023 Financial Highlights
- Total revenues increased by 28% to $159.4 million from $124.7 million for the same period ended June 30, 2022.
- Operating profit decreased by 81% to $1.1 million from $6.0 million for the same period ended June 30, 2022.
- Net profit was $1.1 million, compared to net profit of $5.7 million for the same period ended June 30, 2022.
- Net cash used in operating activities was $20.5 million, compared to net cash used in operating activities of $20.5 million for the same period ended June 30, 2022.
Management Commentary
Mr. Ye Zaichang, Chairman & CEO of SunCar, commented, “We are pleased to report our financial results for the first half of the year 2023. Our revenue increased by 28% to $159.4 million for the first half of fiscal year 2023 as compared to the same period of last year. In the first half of 2023, we successfully executed our sustainable growth strategy and strengthened our leadership in automotive after-sales services and the online insurance market for NEV. We attributed our solid results to increased institutional partner base, expanded network and new service initiatives. In the meanwhile, we made efforts to improve operational efficiency and maintain a healthy balance sheet. Looking into the future, we plan to continuously develop strategic cooperation with leading NEV companies, expand supplier network, and invest in technology.”
Six months ended June 30, 2023 Financial Results
Total revenues in the six months ended June 30, 2023 were $159.4 million, representing an increase of 28% from $124.7 million in the same period ended June 30, 2022.
Revenue from automotive after-sales service in the six months ended June 2023 increased by 10% to $98.8 million from $89.9 million in the same period ended June 30, 2022.
Revenue from insurance intermediation service in the six months ended June 2023 increased by 63% to $47.7 million from $29.3 million in the same period ended June 30, 2022.
Revenue from technology service in the six months ended June 2023 increased by 132% to $12.9 million from $5.5 million in the same period ended June 30, 2022.
Operating costs and expenses in the six months ended June 2023 increased by 33% to $158.3 million from $118.7 million in the same period ended June 30, 2022.
Integrated service cost in the six months ended June 2023 increased by 15% to $87.9 million from $76.7 million in the same period ended June 30, 2022.
Promotional service expenses in the six months ended June 30, 2023 increased by 75% to $49.6 million from $28.4 million in the same period ended June 30, 2022.
Selling expenses in the six months ended June 30, 2023 increased by 88% to $12.8 million from $6.8 million in the same period ended June 30, 2022
General and administrative expenses in the six months ended June 30, 2023 decreased by 19% to $4.0 million from $4.9 million in the same period ended June 30, 2022.
Research and development expenses in the six months ended June 30, 2023 increased by 108% to $4.0 million from $1.9 million in the same period ended June 30, 2022.
Operating profit in the six months ended June 30, 2023 decreased by 81% to $1.1 million from $6.0 million in the same period ended June 30, 2022.
Net profit in the six months ended June 30, 2023 was $1.1 million, compared to net profit of $5.7 million in the same period ended June 30, 2022.
Net loss attributable to ordinary shareholders in the six months ended June 30, 2023 was $3.4 million, compared to net income attributable to ordinary shareholders of $2.1 million in the same period ended June 30, 2022.
Basic and diluted net loss per share is $0.04 in the six months ended June 30, 2023, compared with basic and diluted net income per share of $0.04 in the same period ended June 30, 2022.
As of June 30, 2023, the aggregate amount of the Company's cash and cash equivalents was $38.1 million.
Net cash used in operating activities in the six months ended June 30, 2023 was $20.5 million, compared to net cash used in operating activities of $20.5 million in the same period ended June 30, 2022.
About SunCar Technology Group Inc.
Originally founded in 2007, SunCar is transforming the customer journey for car insurance and aftermarket services in China, the largest passenger vehicle market in the world. SunCar develops and operates online platforms that seamlessly connect drivers with a wide range of automotive services and insurance coverage options from a nationwide network of provider partners. As a result, SunCar has established itself as the leader in China in the B2B automotive after-sales services market and the online insurance market for electric vehicles. The company’s multi-tenant, cloud-based platform empowers its enterprise clients to optimally access and manage their customer database and offerings, and drivers gain access to hundreds of services from tens of thousands of independent providers in a single application.
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's 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
SunCar:
Mr. Stanley Yang
Email: [email protected]
Ms. Hui Jiang
Email: [email protected]
| SUNCAR TECHNOLOGY GROUP INC | |||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
| (In U.S. Dollar thousands, except for share and per share data, or otherwise noted) | |||||||||||||
| December 31, | June 30, | ||||||||||||
| 2022 | 2023 | ||||||||||||
| (Unaudited) | |||||||||||||
| ASSETS | |||||||||||||
| Current assets | |||||||||||||
| Cash | $ | 21,200 | $ | 35,460 | |||||||||
| Restricted cash | 2,717 | 2,653 | |||||||||||
| Short-term investments | 26,544 | 20,985 | |||||||||||
| Accounts receivable, net | 85,619 | 74,593 | |||||||||||
| Prepaid expenses and other current asset | 9,270 | 43,601 | |||||||||||
| Total current assets | 145,350 | 177,292 | |||||||||||
| Non-current assets | |||||||||||||
| Long-term investment | 290 | 276 | |||||||||||
| Software and equipment, net | 18,491 | 15,040 | |||||||||||
| Deferred tax assets, net | 13,070 | 12,630 | |||||||||||
| Other non-current assets | 14,423 | 17,267 | |||||||||||
| Right-of-use assets | 344 | 1,514 | |||||||||||
| Total non-current assets | 46,618 | 46,727 | |||||||||||
| TOTAL ASSETS | $ | 191,968 | $ | 224,019 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||
| Current liabilities | |||||||||||||
| Short-term loans | $ | 74,653 | $ | 85,199 | |||||||||
| Accounts payable | 24,200 | 30,326 | |||||||||||
| Contract liabilities | 3,569 | 3,870 | |||||||||||
| Tax Payable | 2,042 | 1,749 | |||||||||||
| Accrued expenses and other current liabilities | 4,849 | 4,037 | |||||||||||
| Amount due to related parties | 45,564 | 168 | |||||||||||
| Lease liabilities | 315 | 624 | |||||||||||
| Total current liabilities | 155,192 | 125,973 | |||||||||||
| Non-current liabilities | |||||||||||||
| Lease liabilities | - | 796 | |||||||||||
| Amount due to a related party | - | 43,330 | |||||||||||
| Warrant liabilities | - | 32 | |||||||||||
| Total non-current liabilities | - | 44,158 | |||||||||||
| Total liabilities | $ | 155,192 | $ | 170,131 | |||||||||
| 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, 2022 and June 30, 2023, respectively; 30,371,435 and 36,058,102 Class A Ordinary Shares issued and outstanding as of December 31, 2022 and June 30, 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 June 30, 2023, respectively; 49,628,565 and 49,628,565 Class B Ordinary Shares issued and outstanding as of December 31, 2022 and June 30, 2023, respectively) | 5 | 5 | |||||||||||
| Additional paid in capital | 95,764 | 114,084 | |||||||||||
| Accumulated deficit | (99,580 | ) | (103,200 | ) | |||||||||
| Accumulated other comprehensive loss | (1,476 | ) | (1,643 | ) | |||||||||
| Total SUNCAR TECHNOLOGY GROUP INC’s shareholders’ (deficit) equity | (5,284 | ) | 9,250 | ||||||||||
| Non-controlling interests | 42,060 | 44,638 | |||||||||||
| Total equity | 36,776 | 53,888 | |||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 191,968 | $ | 224,019 | |||||||||
* Shares are related to the reverse recapitalization on May 17, 2023 for the business combination and presented on a retroactive basis to reflect the reverse recapitalization.
| SUNCAR TECHNOLOGY GROUP INC | |||||||||
| UNAUDITED CONDENSED 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 Six Months Ended June 30, | |||||||||
| 2022 | 2023 | ||||||||
| Revenues | |||||||||
| Automotive after-sales service | $ | 89,851 | 98,813 | ||||||
| Insurance intermediation service | 29,346 | 47,710 | |||||||
| Technology service | 5,531 | 12,855 | |||||||
| Total revenues | 124,728 | 159,378 | |||||||
| Operating costs and expenses | |||||||||
| Integrated service cost | (76,717 | ) | (87,854 | ) | |||||
| Promotional service cost | (28,363 | ) | (49,563 | ) | |||||
| Selling expenses | (6,802 | ) | (12,793 | ) | |||||
| General and administrative expenses | (4,935 | ) | (4,020 | ) | |||||
| Research and development expenses | (1,930 | ) | (4,020 | ) | |||||
| Total operating costs and expenses | (118,747 | ) | (158,250 | ) | |||||
| Operating profit | 5,981 | 1,128 | |||||||
| Other expenses | |||||||||
| Financial expenses, net | (1,756 | ) | (1,915 | ) | |||||
| Investment income | 249 | 323 | |||||||
| Other income, net | 3,139 | 2,450 | |||||||
| Total other income, net | 1,632 | 858 | |||||||
| Profit before income tax | 7,613 | 1,986 | |||||||
| Income tax expense | (890 | ) | (850 | ) | |||||
| Income from continuing operations, net of tax | 6,723 | 1,136 | |||||||
| Discontinued operations: | |||||||||
| Net loss from the operations of the discontinued operations, net of tax | (1,031 | ) | - | ||||||
| Net profit | 5,692 | 1,136 | |||||||
| Net income from continuing operations | 6,723 | 1,136 | |||||||
| Less: Net income attributable to non-controlling interests of continuing operations | 3,568 | 4,515 | |||||||
| Net income (loss) from continuing operations attributable to SunCar Technology Group Inc’s ordinary shareholders | 3,155 | (3,379 | ) | ||||||
| Loss from discontinued operations, net of tax | (1,031 | ) | - | ||||||
| Less: Net loss attributable to non-controlling interests of discontinue operations | (1 | ) | - | ||||||
| Net loss from discontinued operations attributable to SunCar Technology Group Inc’s ordinary shareholders | (1,030 | ) | - | ||||||
| Net income (loss) attributable to SunCar Technology Group Inc’s ordinary shareholders | 2,125 | (3,379 | ) | ||||||
