SunCar Technology Group Inc (SDA) 2024 Q2 法說會逐字稿

Thank you for standing by and welcome to the SunCar Technology Group's first-half, 2024 earnings call. Please note that today's call is being recorded.

感謝您的耐心等待並歡迎參加 SunCar Technology Group 的 2024 年上半年財報電話會議。請注意，今天的通話正在錄音。

I will now turn the meeting over to Jennifer Jiang, Director of Investor Relations for SunCar Technology Group.

我現在將會議交給 SunCar 科技集團投資者關係總監 Jennifer Jiang。

Thank you and thanks everyone who joined us today for SunCar's first-half of 2024 earnings call. Please note that our earnings press release was issued earlier today and our semi-annual report on Form 6-K was filed with the Securities and Exchange Commission last Friday. Both are available in the investor relations section of our website at http@suncartech.com

謝謝大家，謝謝今天參加我們 SunCar 2024 年上半年財報電話會議的所有人。請注意，我們的收益新聞稿已於今天早些時候發布，我們的 6-K 表格半年度報告已於上週五向美國證券交易委員會提交。兩者皆可在我們網站的投資者關係部分取得：http@suncartech.com

Join us on the call today are SunCar's Chairman, CEO Zaichang Ye and Breaux Walker, US-based consultant.

今天加入我們電話會議的有 SunCar 董事長兼執行長葉再昌和美國顧問 Breaux Walker。

The format of today's call will begin with the opening remarks from Chairman Ye, followed by a financial and business update from Mr. Walker. Afterward, we will move into a question-and-answer session addressing the question submitted by investors.

今天的電話會議將以葉董事長的開場白開始，隨後沃克先生介紹財務和業務最新情況。隨後，我們將進入問答環節，解答投資人提出的問題。

We thank everyone for submitting these questions. Before we get started. I'm going to review the Safe Harbor statement. Please note that today's discussion will contain forward-looking statements made under the Safe Harbor provision of the US Private securities litigation Reform Act of 1995.

我們感謝大家提交這些問題。在我們開始之前。我要回顧安全港聲明。請注意，今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

Forward-looking statements involve inherent risks and uncertainties as such. Our results may differ materially from the views expressed today.

前瞻性陳述本身涉及固有風險和不確定性。我們的結果可能與今天表達的觀點有重大差異。

Further information regarding this and other risks and uncertainties are included in the company's semi-annual report on Form 6-K for the half year ended June 30, 2024, any other documents filed with the US Securities and Exchange Commission.

有關此風險和其他風險和不確定性的更多資訊包含在本公司截至 2024 年 6 月 30 日的半年 6-K 表格半年報告以及向美國證券交易委員會提交的任何其他文件中。

SunCar technology does not assume any obligation to update any forward-looking statements except as required under applicable law.

除適用法律要求外，SunCar 技術不承擔任何更新任何前瞻性陳述的義務。

With that, I would like to turn over the call to our first speaker, Mr. Zaichang Ye SunCar's Chairman, CEO.

接下來，我想將電話轉給我們的第一位發言者，SunCar 董事長兼執行長葉再昌先生。

17 years ago, I founded SunCar to improve the auto services and the auto insurance customer experience in China.

17年前，我創立了SunCar，以改善中國的汽車服務和汽車保險客戶體驗。

SunCar is proud to have achieved that goal and for the value of USD100 million investment in SunCar's technology platform delivers to our customers.

SunCar 很自豪能夠實現這一目標，並為我們的客戶交付價值 1 億美元的 SunCar 技術平台投資。

It is a credit to our unique technology and the team's hard work that we have. Once the trust of China's largest bankers, insurers and auto companies, we will adhere to our mission to meet our customers rapidly changing needs. As we digitalize China's auto services and the e-insurance markets.

這是我們獨特技術和團隊辛勤工作的功勞。一旦獲得中國最大的銀行家、保險公司和汽車公司的信任，我們將堅持我們的使命，滿足客戶快速變化的需求。隨著我們將中國的汽車服務和電子保險市場數位化。

We have been a leader in bringing digital auto services and e-insurance tailored to the EV market. According to the Wall Street Journal, China's August EV and hybrid sales loss 43%, from a year earlier, making art 59% of all vehicle sales. SunCar continue to benefit from the EV market's rapid growth and the strong relationships with our EV partners.

我們一直是為電動車市場提供量身定制的數位汽車服務和電子保險的領導者。根據《華爾街日報》報道，中國 8 月電動車和混合動力車銷量較去年同期下降 43%，使得藝術車佔所有汽車銷量的 59%。SunCar 繼續受益於電動車市場的快速成長以及與電動車合作夥伴的牢固關係。

SunCar partners continue to innovate globally while growing their partnerships with SunCar. From January 2024, our e-insurance partnership with world's leading EV companies has grown rapidly from USD400,000 to over USD36 million in premium value.

SunCar 合作夥伴在不斷發展與 SunCar 的合作夥伴關係的同時，繼續在全球範圍內進行創新。自 2024 年 1 月起，我們與世界領先的電動車公司的電子保險合作夥伴關係的保費價值已從 40 萬美元迅速增長至超過 3,600 萬美元。

As the EV market becomes hyper competitive, there is a greater need for EV companies to leverage our services and insurance sales to increase their competitive advantage.

隨著電動車市場競爭變得異常激烈，電動車公司更需要利用我們的服務和保險銷售來提高其競爭優勢。

SunCar has an even stronger advantage with new EV market interest. This new market entrance face competition, the newer EV companies understand the synergies between our e-insurance and auto services business where SunCar's e-insurance technology can drive the sale of other auto services and the new vehicles purchased.

隨著新的電動車市場的興趣，SunCar 擁有更強大的優勢。這個新的市場進入面臨競爭，較新的電動車公司了解我們的電子保險和汽車服務業務之間的協同效應，其中 SunCar 的電子保險技術可以推動其他汽車服務的銷售和購買的新車。

Our partnership with Li Auto to develop its new broker system is an example of our mission to continue to innovate the e-insurance market.

我們與理想汽車合作開發其新的經紀人系統是我們不斷創新電子保險市場使命的一個例子。

We are honored said the exciting new EV companies, Xiaomi and Jiyue, a joint venture between Jiyue and [Baidu] have decided to offer our integrated auto services and the e-insurance platform to their customers.

我們很榮幸地說，令人興奮的新電動車公司小米和吉悅（吉悅和百度的合資企業）決定向他們的客戶提供我們的綜合汽車服務和電子保險平台。

We estimate that this year's new EV sales will reach 10 million units while there are over 300 million ICE vehicles, a much larger market due to the entry of many EV competitors in the market.

我們預計今年新電動車銷量將達到 1,000 萬輛，而內燃機汽車保有量將超過 3 億輛，由於許多電動車競爭對手的進入，市場規模要大得多。

UCE vehicles are facing increased competition through SunCar's e-insurance platform. I see companies hope to encourage repeat customers and increase insurance related service revenues as part of their competitive strategy, our ability to help our ICE vehicle partners capture this large insurance market opportunity. It's one of the company's biggest revenue opportunities.

UCE 車輛透過 SunCar 的電子保險平檯面臨日益激烈的競爭。我看到公司希望鼓勵回頭客並增加保險相關服務收入作為其競爭策略的一部分，我們有能力幫助我們的內燃機汽車合作夥伴抓住這個巨大的保險市場機會。這是該公司最大的收入機會之一。

ICE companies are quickly realizing the benefits they can achieve by digitalizing and using SunCar leading e-insurance and auto services platform to accelerate that process.

ICE 公司正在迅速意識到透過數位化和使用 SunCar 領先的電子保險和汽車服務平台來加速這一進程可以實現的好處。

SunCar's recent partnership with SAIC, China's largest car company is one example of this trade.

SunCar 最近與中國最大的汽車公司上汽集團的合作就是這種貿易的一個例子。

Finally, we continue to invest in our R&D. We will continue to build up upon our unique AI based technology which allow us to provide the driver's insurance quotes in under two minutes. This technology is a game changer for our e-insurance customers.

最後，我們繼續投資研發。我們將繼續發展我們獨特的基於人工智慧的技術，使我們能夠在兩分鐘內提供駕駛員的保險報價。對於我們的電子保險客戶來說，這項技術改變了遊戲規則。

Thank you, Zaichang Ye. This is Breaux Walker. Thank you all again for joining us. SunCar is a leader in cloud based and software focused B2B auto services and e-insurance in China.

謝謝你，葉再昌。這是布勞克斯·沃克。再次感謝大家加入我們。SunCar 是中國基於雲端、以軟體為中心的 B2B 汽車服務和電子保險領域的領導者。

The company leverages a unique technology to provide valuable customer loyalty and e-insurance solutions to its customers who are some of China's leading corporations.

該公司利用獨特的技術為中國一些領先企業的客戶提供有價值的客戶忠誠度和電子保險解決方案。

China is the world's largest and fastest growing car market and a market that is importantly, rapidly digitalizing.

中國是世界上最大、成長最快的汽車市場，也是一個正在快速數位化的市場。

At the same time, large enterprises are facing significant competitive pressure in retaining and adding new customers. Together, these trends give SunCar an exciting and substantial addressable market opportunity. SunCar operates in three business segments, auto services, auto e-insurance and technology services.

同時，大型企業在保留和增加新客戶方面面臨巨大的競爭壓力。這些趨勢共同為 SunCar 帶來了令人興奮且龐大的潛在市場機會。SunCar經營三大業務部門：汽車服務、汽車電子保險和技術服務。

In our auto services business, we offer access to a digital auto services platform and network of over 47,000 auto service providers as a customer loyalty solution to enterprise clients which includes China's largest financial institutions and auto manufacturers.

在我們的汽車服務業務中，我們為包括中國最大的金融機構和汽車製造商在內的企業客戶提供數位汽車服務平台和超過47,000家汽車服務供應商網路的客戶忠誠度解決方案。

Our extensive auto services cover a wide range of services such as car wash, oil change, car detailing, roadside assistance, flight pickup designated driving, VIP lounge access, and many others. In a country that doesn't have AAA or access to detailed information on auto service providers. SunCar's auto services are of high value to customers and drive increased customer loyalty for our large enterprise customers.

我們廣泛的汽車服務涵蓋洗車、換油、汽車美容、路邊援助、接機指定駕駛、貴賓休息室使用等多種服務。在沒有 AAA 或無法取得汽車服務提供者詳細資訊的國家。SunCar 的汽車服務對客戶來說具有很高的價值，並提高了我們大型企業客戶的客戶忠誠度。

We automate and streamline the insurance buying process through a proprietary cloud platform and mobile app which integrate the full spectrum of products from leading insurers in China. We sell insurance policies through a network of over 64,000 external sales partners including auto manufacturers and auto service providers.

我們透過專有的雲端平台和行動應用程式實現保險購買流程的自動化和簡化，該平台整合了中國領先保險公司的全系列產品。我們透過超過 64,000 個外部銷售合作夥伴（包括汽車製造商和汽車服務提供者）組成的網路銷售保單。

In this segment, we facilitate the sales of auto insurance products underwritten by major insurance companies in China and receive commissions from these insurance company customers which are typically calculated on a percentage of the premiums paid.

在此分部，我們促進中國主要保險公司承保的汽車保險產品的銷售，並從這些保險公司客戶收取佣金，佣金通常以已付保費的百分比計算。

Finally, our fast growing technology services business provides technologies -- a technical software and consulting services to our auto services and e insurance customers with a growing need to manage their businesses more efficiently.

最後，我們快速成長的技術服務業務為我們的汽車服務和電子保險客戶提供技術——技術軟體和諮詢服務，這些客戶越來越需要更有效地管理他們的業務。

Our customers are rapidly implementing our digital tools to streamline their business workflows, manage their customer relationships and automate order processing.

我們的客戶正在快速實施我們的數位工具來簡化他們的業務工作流程、管理他們的客戶關係並自動化訂單處理。

We are continuously upgrading our technology to meet customers’ needs and are in the process of developing a SaaS product offering designed to convert our auto service providers into technology service customers.

我們不斷升級技術以滿足客戶的需求，並正在開發 SaaS 產品，旨在將我們的汽車服務供應商轉變為技術服務客戶。

We expect the transition of auto service partners to our SaaS platform will accelerate as we offer them new AI based services. What sets our business apart from would be competitors is our unique technology and the fact that we have both a comprehensive digital auto service solution and one-stop auto e-insurance solution.

我們預計，隨著我們為汽車服務合作夥伴提供基於人工智慧的新服務，他們將加速向我們的 SaaS 平台的過渡。我們的業務與競爭對手的區別在於我們獨特的技術，以及我們同時擁有全面的數位汽車服務解決方案和一站式汽車電子保險解決方案。

Other strategic advantages include our ability to provide nationwide auto service coverage in China. Access to a large high quality service provider network, competitive prices and an e-insurance product that enables customers to purchase an insurance policy and under two minutes with $120 billion addressable market for insurance services and a $20 billion market for B2B auto services.

其他戰略優勢包括我們能夠在中國提供覆蓋全國的汽車服務。存取大型高品質服務供應商網路、具有競爭力的價格和電子保險產品，使客戶能夠在兩分鐘內購買保險單，擁有 1,200 億美元的保險服務潛在市場和 200 億美元的 B2B 汽車服務市場。

There is a tremendous opportunity for us to grow in our existing markets. In addition to having large addressable markets, we're benefiting from the joint tailwinds of China's auto market digitalization and the increased competition our customers are experiencing, leading them to digitalize and seek effective customer loyalty solutions.

我們在現有市場上有巨大的發展機會。除了擁有龐大的潛在市場之外，我們還受益於中國汽車市場數位化和客戶正在經歷的日益激烈的競爭的共同推動力，引導他們進行數位化並尋求有效的客戶忠誠度解決方案。

We will now transition to our operational performance in the first-half of 2024. We continue to drive significant revenue growth and expand our presence within our large high quality customer accounts in the auto services segment. We signed multiple exclusive service contracts with China Construction Bank, a leading bank in China.

我們現在將過渡到 2024 年上半年的營運表現。我們繼續推動收入顯著成長，並擴大我們在汽車服務領域的大型高品質客戶帳戶中的影響力。我們與中國領先的銀行中國建設銀行簽署了多項獨家服務合約。

These include 2 year vehicle service contract with the bank Fujian branch where SunCar delivers tailored auto services to tens of thousands of CCB customers from 460 car wash locations. Other contracts were signed with the banks, Sichuan and Yunnan branches.

其中包括與銀行福建省分行簽訂的 2 年車輛服務合同，SunCar 為 460 個洗車點的數萬名建行客戶提供客製化汽車服務。與銀行、四川省分行、雲南省分行簽訂了其他合約。

Our destiny pickup service business continues to grow rapidly with top tier customer additions including CITIC, China Merchants and Fortune and Ping An insurance. Earlier this year, we launched a three year partnership with CITIC Bank International to provide exclusive airport concierge car services for its private banking clients.

隨著中信、招商、財富、平安等頂級客戶的增加，我們的命運接載服務業務持續快速成長。今年早些時候，我們與中信銀行國際建立了為期三年的合作夥伴關係，為其私人銀行客戶提供專屬機場禮賓車服務。

In April 2024, we collaborated with an fortune to offer luxury airport concierge services to their black card V3 members. Demonstrating the quality and longevity of our auto services customer base. We expanded our partnership with Ping An insurance.

2024年4月，我們與一家財富公司合作，為其黑卡V3會員提供豪華機場禮賓服務。展示我們汽車服務客戶群的品質和壽命。我們擴大了與平安保險的合作關係。

China's leading insurance company to include new agreements with the Shenzhen branch where SunCar will provide premium airport pickup. This marks the seventh Ping An branch to partner with SunCar for premium airport pickup services.

中國領先的保險公司將與深圳分公司簽訂新協議，SunCar 將在深圳分公司提供優質機場接送服務。這是平安第七家分公司與SunCar合作提供優質接機服務。

SunCar was also selected as the provider of concierge car services for China Merchants Bank, private banking clients through a two year agreement, demonstrating our commitment to providing our customers with innovative solutions.

SunCar也透過為期兩年的協議被選為招商銀行、私人銀行客戶的禮賓車服務供應商，體現了我們致力於為客戶提供創新解決方案的承諾。

We established a new partnership with China Continent insurance in a Mongolia branch, helping to create innovative service bundles which boosted the China continents services sales by 30% in the first half of 2024.

我們與大地保險蒙古分公司建立了新的合作關係，幫助打造創新的服務組合，使大地保險2024年上半年的服務銷售額成長了30%。

In our e-insurance business, we execute on multiple strategic and operational funds to further grow. This segment. We signed a two year agreement with SAIC Maxis, a leading commercial vehicle manufacturer to enhance e-insurance management across its dealership network with 1st year service fees estimated at $14 million. This customer win is indicative of the large potential opportunity SunCar has in the ICE market.

在我們的電子保險業務中，我們執行多個策略和營運基金以進一步發展。這一段。我們與領先的商用車製造商上汽明訊簽署了一份為期兩年的協議，以加強其經銷商網路的電子保險管理，第一年的服務費估計為 1,400 萬美元。此次贏得客戶表明 SunCar 在 ICE 市場擁有巨大的潛在機會。

We began an innovative partnership with Beijing Li Auto insurance to develop the Li Auto insurance broker system which aims to improve brokerage operations with the support of SunCar's advanced it solutions. Additionally, we expanded our collaboration with Beijing Houji Insurance brokerage to deliver insurance services in 14 cities, all utilizing SunCar's e-insurance platform.

我們與北京理車保險建立創新合作關係，開發理車保險經紀系統，旨在藉助SunCar先進的IT解決方案改善經紀業務。此外，我們也擴大了與北京後濟保險經紀公司的合作，在 14 個城市提供保險服務，所有城市都利用 SunCar 的電子保險平台。

We extended our partnership with Zeekr Intelligent Technology, a premium EV manufacturer partner now listed on the New York Stock Exchange for Zeekr. We're providing insurance services using SunCar's intelligent platform.

我們擴大了與 Zeekr 智慧科技的合作關係，Zeekr 是一家優質電動車製造商合作夥伴，現已在紐約證券交易所上市。我們利用SunCar的智慧平台提供保險服務。

Finally, we formed a strategic partnership with Lotus technology to offer comprehensive automotive services and e-insurance. The lotus car owners, we will now transition to our financial performance, all of which will be presented in Us dollars, for the first half of fiscal year 2024. We are very pleased to report total revenue of USD203 million up 27% from USD159 million in the first-half of fiscal year 2023.

最後，我們與蓮花科技建立了策略合作夥伴關係，提供全面的汽車服務和電子保險。蓮花車主們，我們現在將過渡到 2024 財年上半年的財務業績，所有這些都將以美元表示。我們非常高興地報告，總營收為 2.03 億美元，較 2023 財年上半年的 1.59 億美元成長 27%。

This growth underscores our leading position in the auto service and e-insurance sectors. The strength of our innovative cloud based solutions and our ability to meet the evolving needs of enterprise clients across China's automotive and financial services sectors.

這一成長凸顯了我們在汽車服務和電子保險領域的領先地位。我們基於雲端的創新解決方案的實力以及滿足中國汽車和金融服務業企業客戶不斷變化的需求的能力。

Our auto service segment reported revenue of USD107 million in the first-half of fiscal year 2024, an increase of 9% from USD99 million in the first-half of 2023 growth in this segment was driven by an increase in service orders in 2024.

我們的汽車服務部門在 2024 財年上半年的收入為 1.07 億美元，比 2023 年上半年的 9,900 萬美元增長 9%，該部門的增長是由 2024 年服務訂單的增加所推動的。

Our auto e-insurance segment reported revenue of USD74 million in the first-half of 2024. An increase of 55% from USD48 million in the first half of 2023. This growth was driven by a 250% increase in the number of EV insurance policies sold for the six months ended June 30, 2024. The company experienced a 21% decline in the associated average commission rate due to normal fluctuations and regulatory guidelines.

我們的汽車電子保險部門 2024 年上半年收入為 7,400 萬美元。比 2023 年上半年的 4,800 萬美元成長 55%。這一增長是由於截至 2024 年 6 月 30 日的六個月內電動汽車保單銷售量增長了 250%。由於正常波動和監管指導方針，該公司的相關平均佣金率下降了 21%。

Our technology service segment generated revenues of USD22 million in the first-half of fiscal year 2024 representing a 70% increase compared to the prior year period. This increase was due to increasing demand from automotive service providers for online tools that streamline workflows, manage customer relationships and automate order processing.

我們的技術服務部門在 2024 財年上半年營收 2,200 萬美元，比上年同期成長 70%。這一增長是由於汽車服務提供者對簡化工作流程、管理客戶關係和自動化訂單處理的線上工具的需求不斷增加。

Our ongoing technology upgrades including a shift towards a SaaS model and the use of a private cloud platform have simplified development and enhanced service capacity driving this growth. We recorded a net loss of USD60 million in the first-half of fiscal year 2024, compared to a net income of USD1 million in the first half of 2023.

我們正在進行的技術升級，包括轉向 SaaS 模式和使用私有雲平台，簡化了開發並增強了服務能力，推動了這一成長。2024 財年上半年，我們錄得淨虧損 6 千萬美元，而 2023 財年上半年淨收入為 100 萬美元。

The net loss was primarily attributable to increased share based compensation expenses related to the 2024 equity incentive plan. We continue to strategically invest in R&D and business development as we increase our presence in some of the largest enterprise customers in China.

淨虧損主要歸因於2024年股權激勵計畫相關的股權激勵費用增加。隨著我們擴大在中國一些最大的企業客戶的影響力，我們繼續對研發和業務發展進行策略性投資。

We believe that adjusted EBITDA, a non-GAAP metric that excludes certain non-recurring items and non-cash expenses helps evaluate our operational performance. In addition to the GAAP metrics, our adjusted EBITDA increased by 4% to USD6 million in the first-half of 2024 compared to USD5.8 million in the prior year period.

我們認為，調整後的 EBITDA（一種不包括某些非經常性項目和非現金費用的非公認會計原則指標）有助於評估我們的營運績效。除了 GAAP 指標外，我們的調整後 EBITDA 在 2024 年上半年成長了 4%，達到 600 萬美元，而去年同期為 580 萬美元。

In conclusion, we continue to add large high quality customers and experienced strong revenue growth in the first-half 2024. SunCar remains well positioned as the preferred cloud based and software focused B2B auto services and e-insurance provider in China.

總而言之，我們繼續增加大型優質客戶，並在 2024 年上半年實現了強勁的收入成長。SunCar 仍然是中國首選的基於雲端、以軟體為中心的 B2B 汽車服務和電子保險提供者。

We will continue to invest in our differentiated technology platform, develop new AI based and intelligent cloud solutions and expand our high quality auto services and high growth e-insurance business.

我們將繼續投資於我們的差異化技術平台，開發新的基於人工智慧和智慧雲端解決方案，並擴展我們的高品質汽車服務和高成長的電子保險業務。

Before we focus on the question and answer portion of the call, Chairman, I would like to thank our employees, partners, customers as well as our loyal shareholders for their continued support and belief in our vision. We look forward to updating you on our business on up upcoming earnings calls.

主席先生，在我們重點討論電話問答部分之前，我要感謝我們的員工、合作夥伴、客戶以及忠實的股東，感謝他們對我們願景的持續支持和信任。我們期待在即將舉行的財報電話會議上向您介紹我們的業務最新情況。

We will now transition to the Q&A portion of the call. Thank you to everyone who submitted questions.

我們現在將過渡到電話會議的問答部分。感謝所有提交問題的人。

Question number 1, how do you view AI impacting your business?

問題 1，您如何看待人工智慧對您業務的影響？

We see significant growth opportunities from AI given that we are the only nationwide digital auto service in the insurance platform. We expect that our cloud platform and strong database of automotive service providers gives us a unique opportunity to leverage AI to be successful in implementing AI, a company needs scale with our scale.

鑑於我們是保險平台中唯一的全國性數位汽車服務，我們看到了人工智慧帶來的巨大成長機會。我們期望我們的雲端平台和強大的汽車服務提供者資料庫為我們提供了利用人工智慧成功實施人工智慧的獨特機會，公司需要與我們規模相符的規模。

We believe SunCar is uniquely positioned to take further market share from regional and non-automated competitors. Specifically, there's tremendous opportunity to provide predictive maintenance applications to our customers which will increase their maintenance and insurance premium revenue.

我們相信 SunCar 具有獨特的優勢，可以從區域性和非自動化競爭對手手中奪取更多市場份額。具體來說，我們有巨大的機會向我們的客戶提供預測性維護應用程序，這將增加他們的維護和保險費收入。

Additionally, we believe the nascent AV Robotaxi markets will provide SunCar with significant new revenue opportunities as we tailor services to those markets.

此外，我們相信，隨著我們為這些市場量身定制服務，新興的 AV Robotaxi 市場將為 SunCar 提供重要的新收入機會。

Question number 2, the SAIC transaction seems very significant to the company. How would you put that deal in the perspective for your investors?

問題2，上汽集團的交易對公司來說似乎非常重要。您如何看待投資人對這筆交易的看法？

The SAIC transaction is significant for the company, not only for its size but also for the fact that it represents the large market opportunity SunCar has in our emerging traditional fuel or ICE market. In the past, we have primarily been focused on the EV market but we now see the traditional ICE market rapidly digitalizing to better compete with the EV players. ICE is a bigger market than the EV market. So this is a good, very good trend for our business.

SAIC 交易對該公司意義重大，不僅因為其規模，還因為它代表了 SunCar 在新興傳統燃油或內燃機市場中的巨大市場機會。過去，我們主要關注電動車市場，但現在我們看到傳統的內燃機市場正在迅速數位化，以便更好地與電動車廠商競爭。ICE 是一個比電動車市場更大的市場。所以這對我們的業務來說是一個非常非常好的趨勢。

Question number 3, what is the biggest risk to your business?

問題3，您的企業面臨的最大風險是什麼？

We continue to be in high growth mode and as such, our team needs to continue driving towards our objectives, especially the opportunities we see to further integrate our auto services and e-insurance products, develop new AI based products and attack the ICE market opportunity.

我們繼續處於高速成長模式，因此，我們的團隊需要繼續努力實現我們的目標，特別是我們看到的機會，進一步整合我們的汽車服務和電子保險產品，開發新的基於人工智慧的產品並攻擊ICE市場機會。

Question number 4, the company's technology service business saw a significant increase of 70.3% in the first-half of 2024 reaching $21.9 million. What were the main driving forces behind this growth? What are the company's plans for sustained growth in the future?

問題4，該公司的技術服務業務在2024年上半年大幅成長70.3%，達到2,190萬美元。這種成長背後的主要驅動力是什麼？公司未來持續成長的計畫是什麼？

The company's technology services business mainly provides industry specific technology solutions to EV manufacturers and ICE vehicle for 4S dealers. The rapid growth of this business during the period was driven by demand for both new energy, EV vehicle manufacturers and the ICE market who've used SunCar's, integrated services and insurance platform is giving them a competitive advantage with regards to our staff services aimed at the EV market.

本公司的技術服務業務主要為電動車製造商提供行業特定技術解決方案，為4S經銷商提供內燃機車技術解決方案。該業務在此期間的快速成長是由新能源、電動車製造商和使用 SunCar 的綜合服務和保險平台的 ICE 市場的需求推動的，這使他們在我們的員工服務方面具有競爭優勢，旨在電動汽車市場。

The company signed a strategic service agreement, the leading global EV manufacturer to provide a SaaS based vehicle specific insurance system, SunCar also provided advanced vehicle insurance sales systems to Xiaomi, Nio, Zeekr and 18 other companies. It is expected that this part of the business will continue to grow rapidly in the future. Strengthening the company's market leadership position.

公司與全球領先的電動車製造商簽署策略服務協議，為其提供以SaaS為基礎的車輛專用保險系統，SunCar也為小米、蔚來、Zeekr等18家公司提供先進的車輛保險銷售系統。預計未來該部分業務將繼續快速成長。鞏固公司的市場領導地位。

Question number 5, the company's administrative expenses increased significantly by $37 million in the first half of 2024, corresponding to a more than 10 times increase year on year. What is the main reason for this growth?

問題5，2024年上半年公司管理費用大幅增加3,700萬美元，對應年增幅超過10倍。這種成長的主要原因是什麼？

The increase of $37 million in administrative expenses for the first-half of 2024, was primarily due to a onetime equity incentive expense of $31 million which was granted to recognize and motivate the management and administrative employees who have made outstanding contributions. Additionally, $6 million were set aside for bad debt provisions for accounts receivable.

2024年上半年管理費用增加3,700萬美元，主要是由於一次性股權激勵費用3,100萬美元，用於表彰和激勵做出突出貢獻的管理和行政員工。此外，還預留了 600 萬美元的應收帳款壞帳準備。

Question number 6, the company's R&D expenses increased significantly by $28.2 million in the first-half of 2024, corresponding to a 701% increase year-on-year. What is the main reason for this growth?

第6個問題，2024年上半年公司研發費用大幅增加2,820萬美元，較去年同期成長701%。這種成長的主要原因是什麼？

The increase of $28.2 million in R&D expenses for the first-half of 2024, includes a one-time R&D related personnel equity incentive plan of $31 million. After excluding this impact, the actual R&D expenses decreased by $2.8 million year on year. This is mainly due to the company's current development of its big data platform Ping An system which has been capitalized according to the actual progress made during the period.

2024年上半年研發費用增加2,820萬美元，其中包括一次性研發相關人員股權激勵計畫3,100萬美元。剔除此影響後，實際研發費用年減280萬美元。這主要是由於公司目前開發的大數據平台平安系統已根據期內實際進展進行資本化。

Question number 7, the company's adjusted EBITA for the first-half of 2024 increased to $6 million. What is the reason for significant change in operating profit or loss?

第7個問題，公司2024年上半年調整後的EBITA增加至600萬美元。營業利潤或虧損發生重大變化的原因是什麼？

The main reason for the change in the company's issue is the company issued equity incentives for approximately $62.8 million in the first-half of 2024. These were granted to recognize and motivate employees who have made outstanding contributions to the company's development, especially those teams and individuals who have played a key role in our technology innovation, market expansion and management optimization.

公司發行變動的主要原因是公司在2024年上半年發行了約6,280萬美元的股權激勵。這是為了表彰和激勵為公司發展做出突出貢獻的員工，特別是在公司技術創新、市場拓展、管理優化等方面發揮關鍵作用的團隊和個人。

The equity incentive plan is a one-time expenditure. Other differences are mainly due to a depreciation expense of $1.8 million generated from no normal operations.

股權激勵計畫屬於一次性支出。其他差異主要是由於非正常營運產生的 180 萬美元折舊費用。

Question number 8, besides the continuing rapid development of the China business, does the company have any plans for international expansion?

問題8，除了中國業務持續快速發展外，公司是否有國際擴張的計畫？

The company's future international growth will be mainly driven by the availability of strategic M&A opportunities. We believe that acquiring an existing synergistic company in the US could lower our market entry risk as we pursue the opportunities in that market, we have conducted extensive research in the US and Southeast Asia and plan to select targets with similar and core technologies for those markets. With the US market being the top priority in terms of the US market.

公司未來的國際成長將主要由策略併購機會的推動。我們相信，在美國尋找現有的協同公司可以降低我們的市場進入風險，我們在美國和東南亞進行了廣泛的研究，並計劃為這些市場選擇具有相似核心技術的目標。就美國市場而言，美國市場是重中之重。

The company's existing advanced automotive service cloud platform can be used directly in the US market through a localization process. Already identified by the company. The company plans to enter the US market as the first step in its overseas expansion and then expand its platform to other countries when it is mature enough to be transferable to other geographies.

本公司現有的先進汽車服務雲端平台可透過在地化流程直接在美國市場使用。已經被公司認定。該公司計劃首先進入美國市場，作為海外擴張的第一步，然後當平台成熟到可以轉移到其他地區時，再將其平台擴展到其他國家。

Question number 9. Are there any direct or indirect competitors in your industry?

問題 9。您的產業有直接或間接的競爭對手嗎？

In terms of auto services? The company has a leading and nationwide automotive services platform that is differentiated by both its technology and scope, In certain provinces, we have some competitors who have not invested in their technology stack to the same extent. Most of these competitors rely on manual processes which are relatively inefficient compared to the company's comprehensive offering of post sales automotive services. Their services are also more limited regarding automotive insurance. The company is the first nationwide online car insurance platform in the country leading the development of the industry.

在汽車服務方面？該公司擁有領先的全國性汽車服務平台，其技術和範圍均具有差異化。這些競爭對手大多數依賴手動流程，與該公司提供的全面的汽車售後服務相比，效率相對較低。他們在汽車保險方面的服務也更加有限。本公司是國內首家全國性線上車險平台，引領產業發展。

The company offers an innovative insurance quote system which can generate a quote within two minutes based on a vehicle license plate. Our EV specific products in particular are extremely differentiated from would be competitors.

該公司提供創新的保險報價系統，可以根據車輛牌照在兩分鐘內產生報價。我們的電動車專用產品尤其與潛在競爭對手截然不同。

That concludes the Q&A and we want to thank everyone again for participating on today's call. We look forward to providing additional updates soon. In the meantime, we can be reached at IR@suncartech.com.

問答到此結束，我們要再次感謝大家參加今天的電話會議。我們期待很快提供更多更新。同時，您可以透過 IR@suncartech.com 與我們聯繫。

Ladies and gentlemen, that concludes our conference for today. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。