SunCar Technology Group Expands Multi-Platform Collaboration with ICBC Shaanxi Branch Through "Shaanxi Benefits" Platform

Rhea-AI Summary

SunCar Technology Group Inc. (NASDAQ: SDA) has expanded its collaboration with the Shaanxi Branch of the Industrial and Commercial Bank of China (ICBC) through the 'Shaanxi Benefits' platform. This partnership has positioned SunCar as the largest marketing service provider for ICBC Shaanxi Branch, working with various departments.

The platform has achieved significant success since its inception in 2024, with marketing campaigns reaching nearly 1 million interactions monthly. ICBC's average monthly investment exceeds RMB 7 million (US$986,000), driving consumer spending of over RMB 70 million (US$9.9 million) from ICBC Shaanxi Branch cardholders.

The project spans a three-year service period with a total campaign budget of RMB 180 million (US$25.4 million). SunCar's Chairman and CEO, Ye Zaichang, expressed enthusiasm for the partnership and its potential to drive innovation in the financial services sector.

Positive

• Expanded collaboration with ICBC Shaanxi Branch, becoming their largest marketing service provider
• Marketing campaigns reaching nearly 1 million interactions monthly
• Driving consumer spending of over RMB 70 million (US$9.9 million) from ICBC Shaanxi Branch cardholders
• Three-year service period with a total campaign budget of RMB 180 million (US$25.4 million)

Negative

• None.

Insights

Financial Analyst

The collaboration between SunCar and ICBC Shaanxi Branch represents a significant revenue opportunity for SunCar. With a three-year project budget of RMB 180 million (US$25.4 million), this partnership could contribute substantially to SunCar's top line. The platform's success in driving consumer spending of over RMB 70 million (US$9.9 million) monthly is impressive, indicating strong user engagement and potential for sustained growth.

For investors, this deal showcases SunCar's ability to secure high-value, long-term contracts in the competitive fintech space. The expansion beyond car-washing services into broader marketing collaborations demonstrates the company's versatility and potential for diversifying revenue streams. However, it's important to note that while the project budget is substantial, the actual revenue recognition pattern and profitability margins are not disclosed, which are important factors for assessing the true financial impact on SunCar.

Tech Expert

SunCar's successful development and launch of the "Shaanxi Benefits" platform demonstrates its technological prowess in the fintech sector. The platform's ability to handle nearly 1 million monthly interactions indicates robust scalability and user engagement. This showcases SunCar's capability to deliver high-performance, cloud-based solutions that can handle significant transaction volumes.

The multi-department collaboration with ICBC Shaanxi Branch, spanning Internet Finance, Credit Card, Retail Business and Private Banking, highlights the platform's versatility and integration capabilities. For investors, this underscores SunCar's potential to expand its technological offerings across various banking services, potentially opening doors to similar partnerships with other financial institutions. However, it's important to monitor the platform's long-term performance and SunCar's ability to innovate and adapt to changing fintech trends to maintain its competitive edge.

Drives Consumer Spending Over RMB 70 million (US$9.9 million) for ICBC Shaanxi Branch

NEW YORK, Oct. 15, 2024 /PRNewswire/ -- SunCar Technology Group Inc. ("SunCar" or the "Company") (NASDAQ: SDA), an innovative leader in cloud-based B2B auto services and auto e-insurance in China, today announced its successful development and expansion of its collaboration with the Shaanxi Branch of the Industrial and Commercial Bank of China (ICBC) through its "Shaanxi Benefits" platform (the "Platform"). This partnership extends beyond previous car-washing projects into a broader, multi-platform cooperation. Platform positions SunCar as the largest marketing service provider for ICBC Shaanxi Branch, working closely with the bank's Internet Finance Department, Credit Card Department, Retail Business Department, and Private Banking Department.

Since its inception in 2024, the "Shaanxi Benefits" Platform has achieved remarkable success, with marketing campaigns reaching nearly 1 million interactions monthly. The average monthly investment by ICBC in these campaigns exceeds RMB 7 million (US$986,000), driving consumer spending of over RMB 70 million (US$9.9 million) from ICBC Shaanxi Branch cardholders.

This partnership leverages ICBC Shaanxi Branch's extensive experience in customer service and SunCar's strengths in technological innovation and marketing campaign operations. Together, they deliver a seamless and enhanced service experience for cardholders, fostering an intelligent and efficient marketing service ecosystem.

SunCar distinguished itself in the project bidding with its technological expertise and marketing operation prowess, becoming the first to develop and launch the online marketing platform for "Shaanxi Benefits." The project spans a three-year service period with a total campaign budget of RMB 180 million (US$25.4 million).

"We are thrilled to partner with ICBC Shaanxi Branch and to witness the early success of the 'Shaanxi Benefits' Platform," said Ye Zaichang, Chairman and CEO of SunCar. "This latest banking sector collaboration leverages our expertise in technology and marketing to the financial services sector to provide an unparalleled service experience for ICBC's customers. We are committed to driving innovation and delivering exceptional value through this strategic partnership."

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 e-insurance 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 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-technology-group-expands-multi-platform-collaboration-with-icbc-shaanxi-branch-through-shaanxi-benefits-platform-302275847.html

SOURCE SunCar Technology Group Inc.

FAQ

What is the 'Shaanxi Benefits' platform developed by SunCar Technology Group (SDA)?

The 'Shaanxi Benefits' platform is an online marketing platform developed by SunCar Technology Group (SDA) for the Shaanxi Branch of the Industrial and Commercial Bank of China (ICBC). It facilitates marketing campaigns and drives consumer spending for ICBC Shaanxi Branch cardholders.

How much consumer spending has the 'Shaanxi Benefits' platform driven for ICBC Shaanxi Branch in 2024?

The 'Shaanxi Benefits' platform has driven consumer spending of over RMB 70 million (US$9.9 million) from ICBC Shaanxi Branch cardholders since its inception in 2024.

What is the total campaign budget for SunCar's (SDA) collaboration with ICBC Shaanxi Branch?

The total campaign budget for SunCar's (SDA) collaboration with ICBC Shaanxi Branch is RMB 180 million (US$25.4 million) over a three-year service period.

How many monthly interactions does the 'Shaanxi Benefits' platform achieve for SunCar (SDA)?

The 'Shaanxi Benefits' platform developed by SunCar (SDA) achieves nearly 1 million interactions monthly through its marketing campaigns.