Why SunCar Technology Shares Are Falling Today

SunCar Technology Group Inc SDA shares are trading lower by around 7% after the company released its FY22 results.

The company reported a revenue increase of 13% to $282.4 million, led by higher growth in business units.

SDA reported an operating loss of $(12.6) million in FY22 vs. an operating profit of $10.4 million a year ago due to a one-off bad debt provision of $26 million on COVID-19 impact.

The company's net loss narrowed to $(11.9) million, with an EPS loss of $(0.03) vs. $(0.11) in FY21.

Net cash used in operating activities of continuing operations stood at $(16.1) million, vs. $(19.1) million in FY21.

As of December 2022, cash and equivalents stood at $47.7 million.

Mr. YE Zaichang, Chairman & CEO, stated, "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."

"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, the company renewed its insurance intermediation service agreement with NIO Inc NIO to optimize and offer full-spectrum insurance solutions and innovative services. 

Also Read: SunCar Technology Stock Overheats...Will It Rise Again?

Price Action: SDA shares are down 7.49% at $23.84 on the last check Monday.