Six months ended
- Total revenues increased by 28% to
$159.4 million from$124.7 million for the same period endedJune 30, 2022 . - Operating profit decreased by 81% to
$1.1 million from$6.0 million for the same period endedJune 30, 2022 . - Net profit was
$1.1 million , compared to net profit of$5.7 million for the same period endedJune 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 endedJune 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
Six months ended
Total revenues in the six months ended
Revenue from automotive after-sales service in the six months ended
Revenue from insurance intermediation service in the six months ended
Revenue from technology service in the six months ended
Operating costs and expenses in the six months ended
Integrated service cost in the six months ended
Promotional service expenses in the six months ended
Selling expenses in the six months ended
General and administrative expenses in the six months ended
Research and development expenses in the six months ended
Operating profit in the six months ended
Net profit in the six months ended
Net loss attributable to ordinary shareholders in the six months ended
Basic and diluted net loss per share is
As of June 30, 2023, the aggregate amount of the Company's cash and cash equivalents was
Net cash used in operating activities in the six months ended
About
Originally founded in 2007, SunCar is transforming the customer journey for car insurance and aftermarket services in
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
Contact
SunCar:
Mr.
Email: yang.ts@car1768.com
Ms.
Email: jianghui@4008801768.com
SUNCAR TECHNOLOGY GROUP INC | |||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
(In | |||||||||||||
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 | $ | 3 | $ | 4 | |||||||||
Class B Ordinary Shares* (par value of | 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
SUNCAR TECHNOLOGY GROUP INC | |||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) | |||||||||
(In | |||||||||
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 | ) | ||||||
Net income (loss) per ordinary share from continuing operations: | |||||||||
Basic and diluted | $ | 0.04 | $ | (0.04 | ) | ||||
Net loss per ordinary share from discontinued operations: | |||||||||
Basic and diluted | $ | (0.01 | ) | $ | - | ||||
Net income (loss) attributable to SunCar Technology Group Inc’s ordinary shareholders per ordinary share | |||||||||
Basic and diluted | $ | 0.03 | $ | (0.04 | ) | ||||
Weighted average shares outstanding used in calculating basic and diluted income (loss) per share | |||||||||
Basic and diluted | 80,000,000 | 81,374,609 | |||||||
Income from continuing operations before non-controlling interests | $ | 6,723 | $ | 1,136 | |||||
Loss from discontinued operation, net of tax | (1,031 | ) | - | ||||||
Net income | 5,692 | 1,136 | |||||||
Other comprehensive loss | |||||||||
Foreign currency translation difference | (2,412 | ) | (2,614 | ) | |||||
Total other comprehensive loss | (2,412 | ) | (2,614 | ) | |||||
Total comprehensive income (loss) | 3,280 | (1,478 | ) | ||||||
Less: total comprehensive income attributable to non-controlling interest | 800 | 2,068 | |||||||
Total comprehensive (loss) income attributable to SUNCAR TECHNOLOGY GROUP INC’s shareholders | $ | 2,480 | $ | (3,546 | ) | ||||
Shares are related to the reverse recapitalization on
SUNCAR TECHNOLOGY GROUP INC | |||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(In | |||||||||
For the Six Months Ended | |||||||||
2022 | 2023 | ||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
Net profit from continuing operations | $ | 6,723 | $ | 1,136 | |||||
Net loss from discontinued operations | (1,031 | ) | - | ||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||
Provision for doubtful accounts | 245 | (3,694 | ) | ||||||
Depreciation and amortization | 2,077 | 2,840 | |||||||
Amortization of right-of-use assets | - | 350 | |||||||
Share-based compensation of subsidiary | 830 | 776 | |||||||
Loss on disposal of software and equipment | 2 | - | |||||||
Change in deferred taxes | (249 | ) | (207 | ) | |||||
Fair value income from short-term investments | - | (323 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable, net | (13,894 | ) | 10,353 | ||||||
Prepaid expenses and other current asset, net | (1,084 | ) | (38,757 | ) | |||||
Accounts payable | (17,696 | ) | 7,647 | ||||||
Contract liabilities | 548 | 497 | |||||||
Accrued expenses and other current liabilities | 916 | (787 | ) | ||||||
Tax payable | (86 | ) | (202 | ) | |||||
Operating lease liabilities | - | (321 | ) | ||||||
Amount due to related parties | 1,185 | 167 | |||||||
Net cash used in operating activities of continuing operations | (20,483 | ) | (20,525 | ) | |||||
Net cash used in operating activities of discontinued operations | (54 | ) | - | ||||||
Total net cash used in operating activities | (20,537 | ) | (20,525 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Purchase of software and equipment | (1,082 | ) | (577 | ) | |||||
Purchase short-term investment | (105 | ) | - | ||||||
Proceeds from sale of short-term investment | - | 4,784 | |||||||
Purchase of other non-current assets | - | (3,310 | ) | ||||||
Net cash (used in) provided by investing activities of continuing operations | (1,187 | ) | 897 | ||||||
Net cash used in investing activities of discontinued operations | (537 | ) | - | ||||||
Total net cash (used in) provided by investing activities | (1,724 | ) | 897 | ||||||
CASH FLOWS FORM FINANCING ACTIVITIES | |||||||||
Proceeds from short-term bank loans | 70,564 | 68,271 | |||||||
Repayments of short-term bank loans | (43,942 | ) | (53,418 | ) | |||||
Repurchase of non-controlling interests | (496 | ) | - | ||||||
Proceeds from Private Placement | - | 21,737 | |||||||
Net cash paid on reverse recapitalization | - | (482 | ) | ||||||
Payment for the offering cost | - | (623 | ) | ||||||
Net cash provided by financing activities of continuing operations | 26,126 | 35,485 | |||||||
Net cash provided by financing activities of discontinued operations | - | ||||||||
Total net cash provided by financing activities | 26,126 | 35,485 | |||||||
Effect of exchange rate changes | (1,463 | ) | (1,661 | ) | |||||
Net change in cash and restricted cash | 2,402 | 14,196 | |||||||
Cash and restricted cash, beginning of the period | $ | 37,347 | $ | 23,917 | |||||
Cash and restricted cash, end of the period | $ | 39,749 | $ | 38,113 | |||||
Less: cash of discontinued operations at end of the period | - | - | |||||||
Cash and restricted cash at end of the period for continuing operations | $ | 39,749 | $ | 38,113 | |||||
Reconciliation of cash and restricted cash to the consolidated balance sheets: | |||||||||
Cash | $ | 36,958 | $ | 35,460 | |||||
Restricted cash | $ | 2,791 | $ | 2,653 | |||||
Total cash and restricted cash | $ | 39,749 | $ | 38,113 | |||||
Supplemental disclosures of cash flow information: | |||||||||
Income tax paid | $ | 1,108 | $ | 1,128 | |||||
Interest expense paid | $ | 2,271 | $ | 1,704 | |||||
Supplemental disclosures of non-cash activities: | |||||||||
Disposal of | 24,042 | - |
Source:
2023 GlobeNewswire, Inc., source