On July 18, 2025, the People’s Court of Songjiang District, Shanghai, issued a judgment to revoke, within the amount of the creditor’s rights confirmed in the civil mediation agreement in favor of the plaintiff, Shanghai Yongyuan Venture Capital Partnership (Limited Partnership) (“Yongyuan”), the equity transfer of SunCar Online by the defendant, Zhejiang Shengling Automotive Service Co., Ltd. (formerly known as Shengda Automobile Service Group Co. Limited, or “Shengda Group”), to Shanghai Zanxing, and ordered the restoration of the equity ownership. Shanghai Zanxing subsequently filed an appeal against the judgment.

On October 31, 2025, the People’s Court upheld the original judgement. Considering the amount of Yongyuan’s claim against Shengda Group, Shanghai Zanxing’s equity interest in SunCar Online was reduced from 55.34% to 47.92% as of June 30, 2026. According to concerted action arrangements between Shanghai Zanxing and other shareholders, which still collectively hold an aggregate equity interest of 50.97% in SunCar Online, the Group believes that the outcome of this dispute will not affect Shanghai Zanxing’s effective control over SunCar Online. As of the issuance date of the unaudited condensed consolidated financial statements, the judgment has not yet been enforced.