SunCar Secures $1.93M Contract with China Construction Bank Hunan, Expanding National Banking Partnerships

Rhea-AI Summary

SunCar Technology Group (NASDAQ: SDA) has secured a RMB 14 million (US$1.93 million) contract with China Construction Bank (CCB) Hunan to operate their car wash program. The two-year agreement extends through December 2026 and expands SunCar's existing CCB partnerships beyond Fujian and Yunnan provinces.

Under the contract, SunCar will provide exclusive car wash services to CCB Hunan's Long Card members through its service location network. This development builds upon SunCar's successful implementation in Yunnan province, where they've integrated their digital platform with CCB's banking services. The agreement represents SunCar's ongoing transformation from a traditional benefits provider to an 'automotive ecosystem operator,' combining banking services, digital payments, and physical car care locations into a unified platform.

Positive

• Secured new US$1.93M contract with CCB Hunan
• Expanded banking partnerships to third province
• Two-year revenue visibility through December 2026
• Exclusive service provider status for CCB Hunan's Long Card members

Negative

• None.

Insights

Financial Services Analyst

The $1.93 million contract with China Construction Bank's Hunan branch represents a strategic milestone for SunCar, though the contract value itself is relatively modest at 0.36% of the company's market capitalization. However, the true significance lies in the expansion pattern and ecosystem development strategy.

The agreement's importance stems from three key factors:

• Market Penetration: Hunan province, with its population of over 66 million and growing middle class, represents a substantial market opportunity. CCB's Long Card member base provides immediate access to a premium customer segment.
• Operational Blueprint: The successful implementation in Yunnan province has created a replicable model for digital-physical integration. This proven track record significantly reduces execution risk for future regional expansions.
• Network Effects: Each new provincial partnership strengthens SunCar's negotiating position with other banks and service providers. The company is building valuable integration expertise and operational data that creates barriers to entry for competitors.

The transformation into an "automotive ecosystem operator" is particularly noteworthy. By creating a unified platform that connects banking services, digital payments, and physical car care locations, SunCar is positioning itself at the intersection of fintech and automotive services. This integrated approach could generate significant customer stickiness and recurring revenue streams.

The contract's two-year duration through December 2026 provides revenue visibility and a foundation for further service expansion. The successful execution in Fujian and Yunnan provinces suggests strong potential for additional CCB regional partnerships, possibly leading to a national-level agreement.

NEW YORK, Feb. 20, 2025 /PRNewswire/ -- SunCar Technology Group Inc. ("SunCar" or the "Company") (NASDAQ: SDA), an innovative leader in auto e-insurance and cloud-based B2B auto services in China, today announced it has secured an RMB 14 million (US$1.93 million) contract to operate China Construction Bank's (CCB) car wash program in Hunan province. The two-year agreement runs through December 2026 and builds on SunCar's existing CCB partnerships in Fujian and Yunnan provinces.

Under the contract, SunCar will provide exclusive car wash services to CCB Hunan's Long Card members through its network of service locations. The program furthers SunCar's successful implementation in Yunnan province, where the Company has integrated its digital platform with CCB's banking services to streamline the customer experience.

This latest win advances SunCar's transformation from a traditional benefits provider to what it terms an "automotive ecosystem operator" – combining banking services, digital payments, and physical car care locations into a unified platform.

"The Hunan contract demonstrates our ability to scale our banking partnerships nationwide," said Ye Zaichang, CEO of SunCar Technology. "By connecting CCB's massive customer base with our service network, we're creating a new standard for integrated services."

About SunCar Technology Group Inc.

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 intelligent cloud 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 Jiang
Email: IR@suncartech.com
Legal: Ms. Li Chen
Email: chenli@suncartech.com

U.S. Investor Relations
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com

View original content:https://www.prnewswire.com/news-releases/suncar-secures-1-93m-contract-with-china-construction-bank-hunan-expanding-national-banking-partnerships-302381069.html

SOURCE SunCar Technology Group Inc.

FAQ

What is the value of SunCar's (SDA) new contract with CCB Hunan?

SunCar (SDA) secured a RMB 14 million (US$1.93 million) contract with China Construction Bank Hunan.

How long is SunCar's (SDA) new CCB Hunan contract valid?

The contract runs for two years through December 2026.

Which provinces does SunCar (SDA) now have CCB partnerships in?

SunCar has CCB partnerships in Hunan, Fujian, and Yunnan provinces.

What services will SunCar (SDA) provide under the CCB Hunan contract?

SunCar will provide exclusive car wash services to CCB Hunan's Long Card members through its service location network.