SunCar Technology Group Inc. Announces Its Operational Results for the Fiscal Year 2022
- Total revenues increased by 13% to $282.4 million for fiscal year 2022. Revenue from automotive after-sales service increased by 6% to $199.3 million. Revenue from insurance intermediation service increased by 19% to $67.6 million. Revenue from technology service increased by 237% to $15.5 million. Gross margin increased from 37.07% to 40.94%.
- Operating loss of $12.6 million. Net loss of $11.9 million. Net cash used in operating activities of continuing operations was $16.1 million.
Total Revenues Increases to
NEW YORK, July 03, 2023 (GLOBE NEWSWIRE) -- SunCar Technology Group Inc. (“SunCar” or the “Company”) (Nasdaq: SDA), a leading provider of digitalized enterprise automotive after-sales services and online auto insurance intermediation service in China, today announced its financial results for the fiscal year ended December 31, 2022.
Full Year 2022 Financial Highlights
- Total revenues increased by
13% to$282.4 million for the fiscal year 2022 from$249.2 million in the fiscal year of 2021. - Operating loss was
$12.6 million , compared to operating profit of$10.4 million in the fiscal year of 2021. - Net loss was
$11.9 million , representing a decrease of34% from$18.1 million in the fiscal year of 2021. - Net cash used in operating activities of continuing operations was
$16.1 million , compared to$19.1 million in the fiscal year of 2021.
Fiscal Year 2022 Operational Highlights
- As of December 31, 2022, the Company was working with over 1,300 enterprise clients, over 45,000 after sales service providers, 85 insurance companies, over 740 insurance company branches and over 62,000 insurance sales partners.
Management Commentary
Mr. YE Zaichang, Chairman & CEO of SunCar, commented, “We are glad to report our first fiscal year results as a public company. In 2022, we successfully executed our sustainable growth strategy, further strengthening our leadership in automotive after-sales services and the online automobile insurance intermediation market throughout China, especially in the new energy vehicle (“NEV”) segment. During 2022, we faced sustained headwinds from the ongoing impact COVID-19 throughout China, but we are proud that our core business model was able to sustain and expand our overall company’s growth during these difficult times. We attribute our solid operational results and the consolidation of our leadership position in China to an increased institutional partner base, expanded network and new service initiatives. Additionally, we made significant strides in improving our operational platform by increasing efficiencies and will keep this improvement heading into 2023, as we believe this is one of the most important element to maintain a healthy balance sheet.”
“Looking into 2023, we plan to continuously grow strategic cooperation with leading NEV companies, expand supplier network, and invest in technologies which will further solidify our leading position in China and assist us in operating our diverse platform more effectively and efficiently.”
Recent Developments
In February 2023, after three years’ productive cooperation, the Company renewed its insurance intermediation service agreement with NIO Inc., one of China’s largest electric car manufacturers, to continue optimizing its full-spectrum insurance solutions and innovative services provided to NIO and its customers. In the first half of 2023, the Company initiated insurance intermediation service with three other NEV companies, namely JIDU Auto, Leap Motor, and Yudo Auto. So far, the Company has established insurance intermediation service with 17 new energy vehicle (NEV) and smart car panel players.
Full Year 2022 Financial Results
Total revenues in the fiscal year of 2022 were
Revenue from automotive after-sales service in the fiscal year of 2022 increased by
Revenue from insurance intermediation service in the fiscal year of 2022 increased by
Revenue from technology service in the fiscal year of 2022 increased by
Operating costs and expenses in the fiscal year of 2022 increased by
Integrated service cost in the fiscal year of 2022 increased by
Promotional service costs in the fiscal year of 2022 increased by
Selling expenses in the fiscal year of 2022 increased by
General and administrative expenses in the fiscal year of 2022 increased by
Research and development expenses in the fiscal year of 2022 increased by
Operating loss in the fiscal year of 2022 was
Net loss in the fiscal year of 2022 was
Net loss from continuing operations attributable to ordinary shareholders in the fiscal year of 2022 was
Basic and diluted net loss per share in the fiscal year of 2022 were both
As of December 31, 2022, the aggregate amount of the Company's cash and cash equivalents was
Net cash used in operating activities in the fiscal year of 2022 was
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.8972 to US
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 for B2B automotive after-sales services 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 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:
Ms. Hui Jiang
Email: IR@suncartech.com
Ms. Li Chen
Email: chenli@suncartech.com
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (In U.S. Dollar thousands, except for share and per share data, or otherwise noted) | ||||||||
| As of December 31, | ||||||||
| 2021 | 2022 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 34,517 | $ | 21,200 | ||||
| Restricted cash | 2,830 | 2,717 | ||||||
| Short-term investments | 29,147 | 26,544 | ||||||
| Accounts receivable, net | 85,637 | 85,619 | ||||||
| Prepaid expenses and other current assets, net | 5,740 | 9,270 | ||||||
| Current assets of discontinued operations | 3,875 | - | ||||||
| Total current assets | 161,746 | 145,350 | ||||||
| Non-current assets | ||||||||
| Long-term investment | 314 | 290 | ||||||
| Software and equipment, net | 10,739 | 18,491 | ||||||
| Deferred tax assets, net | 12,086 | 13,070 | ||||||
| Other non-current assets | 24,385 | 14,423 | ||||||
| Right-of-use assets | - | 344 | ||||||
| Non-current assets of discontinued operations | 5,000 | - | ||||||
| Total non-current assets | 52,524 | 46,618 | ||||||
| TOTAL ASSETS | $ | 214,270 | $ | 191,968 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Short-term loan | $ | 69,030 | $ | 74,653 | ||||
| Accounts payable | 31,491 | 24,200 | ||||||
| Deferred revenue | 1,901 | 3,569 | ||||||
| Tax payable | 2,505 | 2,042 | ||||||
| Accrued expenses and other current liabilities | 2,887 | 4,849 | ||||||
| Amount due to a related party | - | 45,564 | ||||||
| Operating lease liability-current | - | 315 | ||||||
| Current liabilities of discontinued operations | 27,334 | - | ||||||
| Total current liabilities | 135,148 | 155,192 | ||||||
| Non-current liabilities of discontinued operations | 52,659 | - | ||||||
| Total liabilities | $ | 187,807 | $ | 155,192 | ||||
| Commitments and contingencies (Note 20) | ||||||||
| Shareholders’ deficit | ||||||||
| Ordinary shares (par value of US | $ | 11 | $ | 11 | ||||
| Convertible Preferred shares (par value US | 10 | 10 | ||||||
| Additional paid in capital | 75,091 | 95,751 | ||||||
| Accumulated deficit | (92,911 | ) | (99,580 | ) | ||||
| Accumulated other comprehensive loss | (3,637 | ) | (1,476 | ) | ||||
| Total AUTO SERVICES GROUP LIMITED’s shareholders’ deficit | (21,436 | ) | (5,284 | ) | ||||
| Non-controlling interests | 47,899 | 42,060 | ||||||
| Total equity | 26,463 | 36,776 | ||||||
| TOTAL LIABILITIES AND EQUITY | $ | 214,270 | $ | 191,968 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In U.S. Dollar thousands, except for share and per share data, or otherwise noted) | ||||||||||||
| For the years ended December 31, | ||||||||||||
| 2020 | 2021 | 2022 | ||||||||||
| Revenues | ||||||||||||
| Automotive after-sales service | $ | 154,238 | $ | 187,880 | $ | 199,294 | ||||||
| Insurance intermediation service | 84,161 | 56,766 | 67,640 | |||||||||
| Technology service | 526 | 4,589 | 15,479 | |||||||||
| Total revenues | 238,925 | 249,235 | 282,413 | |||||||||
| Operating cost and expenses | ||||||||||||
| Integrated service cost | (131,932 | ) | (156,852 | ) | (166,793 | ) | ||||||
| Promotional service expenses | (79,515 | ) | (55,222 | ) | (65,500 | ) | ||||||
| Selling expenses | (6,835 | ) | (12,731 | ) | (16,477 | ) | ||||||
| General and administrative expenses | (7,780 | ) | (10,420 | ) | (37,742 | ) | ||||||
| Research and development expenses | (5,029 | ) | (3,651 | ) | (8,478 | ) | ||||||
| Total operating costs and expenses | (231,091 | ) | (238,876 | ) | (294,990 | ) | ||||||
| Operating profit/(loss) | 7,834 | 10,359 | (12,577 | ) | ||||||||
| Other income/(expenses) | ||||||||||||
| Financial expenses, net | (2,100 | ) | (3,045 | ) | (3,659 | ) | ||||||
| Investment income | 255 | 759 | 441 | |||||||||
| Other income, net | 2,385 | 2,457 | 5,121 | |||||||||
| Total other income, net | 540 | 171 | 1,903 | |||||||||
| Income/(loss) before income tax expense | 8,374 | 10,530 | (10,674 | ) | ||||||||
| Income tax expense | (1,752 | ) | (938 | ) | (231 | ) | ||||||
| Income/(Loss) from continuing operations, net of tax | 6,622 | 9,592 | (10,905 | ) | ||||||||
| Discontinued operations: | ||||||||||||
| Net loss from the operations of the discontinued operations, net of tax | (16,397 | ) | (27,682 | ) | (994 | ) | ||||||
| Net loss | (9,775 | ) | (18,090 | ) | (11,899 | ) | ||||||
| Net income/(loss) from continuing operations | 6,622 | 9,592 | (10,905 | ) | ||||||||
| Less: Net income/(loss) attributable to non-controlling interests of continuing operations | 3,219 | 5,650 | (5,230 | ) | ||||||||
| Net income/(loss) from continuing operations attributable to SunCar’s ordinary shareholders | 3,403 | 3,942 | (5,675 | ) | ||||||||
| Loss from discontinued operations, net of tax | (16,397 | ) | (27,682 | ) | (994 | ) | ||||||
| Less: Net loss attributable to non-controlling interests of discontinue operations | (1 | ) | (19 | ) | - | |||||||
| Net loss from discontinued operations attributable to SunCar’s ordinary shareholders | (16,396 | ) | (27,663 | ) | (994 | ) | ||||||
| Net loss attributable to SunCar’s ordinary shareholders | (12,993 | ) | (23,721 | ) | (6,669 | ) | ||||||
| Net income/(loss) per ordinary share from continuing operations: | ||||||||||||
| Basic | $ | 0.01 | $ | 0.01 | $ | (0.03 | ) | |||||
| Diluted | $ | 0.01 | $ | 0.01 | $ | (0.03 | ) | |||||
| Net loss per ordinary share from discontinued operations: | ||||||||||||
| Basic and diluted | $ | (0.07 | ) | $ | (0.12 | ) | $ | (0.00 | ) | |||
| Net loss attributable to SunCar’s ordinary shareholders per ordinary share | ||||||||||||
| Basic and diluted | $ | (0.06 | ) | $ | (0.11 | ) | $ | (0.03 | ) | |||
| Weighted average shares outstanding used in calculating basic and diluted loss per share | ||||||||||||
| Basic and diluted | 225,000,000 | 225,000,000 | 225,000,000 | |||||||||
| Weighted average shares outstanding used in calculating basic and diluted income per share | ||||||||||||
| Basic and diluted | 418,668,614 | 418,668,614 | 418,668,614 | |||||||||
| Income/ (loss) from continuing operations before non-controlling interests | 6,622 | $ | 9,592 | (10,905 | ) | |||||||
| Loss from discontinued operations, net of tax | (16,397 | ) | (27,682 | ) | (994 | ) | ||||||
| Net loss | (9,775 | ) | (18,090 | ) | (11,899 | ) | ||||||
| Other comprehensive income/(loss) | ||||||||||||
| Foreign currency translation difference | 1,195 | 907 | (2,410 | ) | ||||||||
| Total other comprehensive income/(loss) | 1,195 | 907 | (2,410 | ) | ||||||||
| Total comprehensive loss | (8,580 | ) | (17,183 | ) | (14,309 | ) | ||||||
| Less: total comprehensive income/(loss) attributable to non-controlling interest | 4,791 | 6,839 | (9,801 | ) | ||||||||
| Total comprehensive loss attributable to the AUTO SERVICES GROUP LIMITED’s shareholders | (13,371 | ) | $ | (24,022 | ) | (4,508 | ) | |||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollar thousands, except for share and per share data, or otherwise noted) | ||||||||||||
| For the years ended December 31, | ||||||||||||
| 2020 | 2021 | 2022 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net income/(loss) from continuing operations | $ | 6,622 | $ | 9,592 | $ | (10,905 | ) | |||||
| Net loss from discontinued operations | (16,397 | ) | (27,682 | ) | (994 | ) | ||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
| Provision for doubtful accounts | 39 | 148 | 25,981 | |||||||||
| Depreciation and amortization | 1,613 | 4,055 | 5,078 | |||||||||
| Amortization of right-of-use assets | - | - | 619 | |||||||||
| Share-based compensation of subsidiary | 520 | 1,668 | 1,599 | |||||||||
| Loss on disposal of software and equipment | 29 | 27 | - | |||||||||
| Deferred income tax benefit | (2,333 | ) | (1,124 | ) | (1,951 | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable, net | 1,531 | (35,071 | ) | (32,640 | ) | |||||||
| Prepaid expenses and other current assets | (4,065 | ) | 3,181 | (3,850 | ) | |||||||
| Accounts payable | 53 | 13,608 | (5,019 | ) | ||||||||
| Deferred revenue | (2,419 | ) | 813 | 1,858 | ||||||||
| Accrued expenses and other current liabilities | 8,356 | (14,976 | ) | 2,548 | ||||||||
| Tax payable | 1,582 | (1,026 | ) | (280 | ) | |||||||
| Operating lease liabilities | - | - | (615 | ) | ||||||||
| Amount due to related parties | - | - | 1,485 | |||||||||
| Net cash provided by (used in) operating activities of continuing operations | 11,528 | (19,105 | ) | (16,092 | ) | |||||||
| Net cash provided by (used in) operating activities of discontinued operations | 7,104 | (6,462 | ) | (52 | ) | |||||||
| Total net cash provided by (used in) operating activities | 18,632 | (25,567 | ) | (16,144 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
| Purchase of software and equipment | (9,488 | ) | (1,284 | ) | (4,351 | ) | ||||||
| Purchase of short term investment | (10,084 | ) | (9,839 | ) | - | |||||||
| Purchase of long-term investment | (297 | ) | - | - | ||||||||
| Proceeds from the redemption of short term investment | - | - | 149 | |||||||||
| Purchase of other non-current assets | (9,168 | ) | (8,968 | ) | (1,200 | ) | ||||||
| Net cash used in investing activities of continuing operations | (29,037 | ) | (20,091 | ) | (5,402 | ) | ||||||
| Net cash used in investing activities of discontinued operations | (126 | ) | (591 | ) | (517 | ) | ||||||
| Total net cash used in investing activities | (29,163 | ) | (20,682 | ) | (5,919 | ) | ||||||
| CASH FLOWS FORM FINANCING ACTIVITIES | ||||||||||||
| Proceeds from short-term bank loans | 77,722 | 76,812 | 122,249 | |||||||||
| Repayments of short-term bank loans | (60,036 | ) | (70,193 | ) | (111,103 | ) | ||||||
| Contribution from non-controlling shareholders | 33,097 | - | - | |||||||||
| Repurchase of non-controlling interests | (1,090 | ) | (1,184 | ) | (510 | ) | ||||||
| Dividend paid to non-controlling shareholders | - | (6,620 | ) | - | ||||||||
| Net cash provided by (used in) financing activities of continuing operations | 49,693 | (1,185 | ) | 10,636 | ||||||||
| Net cash (used in) provided by financing activities of discontinued operations | (5,816 | ) | 1,119 | - | ||||||||
| Total net cash provided by (used in) financing activities | 43,877 | (66 | ) | 10,636 | ||||||||
| Effect of exchange rate changes | 3,098 | 1,827 | (2,573 | ) | ||||||||
| Net change in cash and restricted cash | 36,444 | (44,488 | ) | (14,000 | ) | |||||||
| Cash and restricted cash, beginning of the year | $ | 45,961 | $ | 82,405 | $ | 37,917 | ||||||
| Cash and restricted cash, end of the year | $ | 82,405 | $ | 37,917 | $ | 23,917 | ||||||
| Less: cash of discontinued operations at end of year | 2,856 | 570 | - | |||||||||
| Cash and restricted cash at end of year for continuing operations | $ | 79,549 | $ | 37,347 | $ | 23,917 | ||||||
| Reconciliation of cash and restricted cash to the consolidated balance sheets: | ||||||||||||
| Cash | $ | 76,883 | $ | 34,517 | $ | 21,200 | ||||||
| Restricted cash | $ | 2,666 | $ | 2,830 | $ | 2,717 | ||||||
| Total cash and restricted cash | $ | 79,549 | $ | 37,347 | $ | 23,917 | ||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Income tax paid | $ | 2,309 | $ | 3,472 | $ | 2,459 | ||||||
| Interest expense paid | $ | 2,485 | $ | 3,087 | $ | 3,780 | ||||||
| Supplemental disclosures of non-cash activities: | ||||||||||||
| Disposal of Shengda Group | - | - | 23,222 | |||||||||
| Decrease of accrued expenses and other current liabilities due to vest of restricted shares | $ | - | $ | 311 | $ | 311 | ||||||
| Purchase of software and equipment by using accrued expenses and other current liabilities | $ | 1,720 | $ | - | $ | - | ||||||
| Obtaining right-of-use assets in exchange for operating lease liabilities and prepaid expenses | $ | - | - | $ | 972 | |||||||
| Software and equipment transferred from other non-current assets | $ | - | - | $ | 12,150 | |||||||
FAQ
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