Shengda Technology (SDA.US) Releases Preliminary Results Forecast for First Nine Months: Operating Revenue Up 26% Year-on-Year, Net Profit of Approximately US$5.78 Million Achieves Turnaround

SunCar Technology Group Inc. ("Shengda Technology" or the "Company," Nasdaq ticker: SDA.US), a Chinese digital automotive insurance and automotive services enterprise, today released its preliminary unaudited results forecast for the first nine months of 2026. The Company expects to report operating revenue of approximately US$426.4 million, up 26% year-on-year compared with the same period in 2025; and net profit of approximately US$5.78 million, compared with a net loss of US$4.1 million in the same period last year. Among this, net profit for the third quarter alone was US$2.405 million, marking the Company's fifth consecutive quarter of profitability. The Company expects full-year 2026 operating revenue to still reach US$600 million, maintaining its previous guidance unchanged. Overview of First Nine Months of 2026 Results Based on this results forecast, the Company's revenue has maintained growth, and net profit has achieved a turnaround compared with the same period last year, with both the automotive insurance and automotive services business segments achieving year-on-year growth. Operating revenue: approximately US$426.4 million, up 26% year-on-year, with full-year guidance of US$600 million unchanged. Net profit: approximately US$5.78 million, compared with a net loss of US$4.1 million in the same period last year, an improvement of approximately US$9.88 million year-on-year. Quarterly profitability: net profit for the third quarter (JulySeptember) was US$2.405 million, marking the Company's fifth consecutive quarter of profitability since the third quarter of 2025. Growth by business segment: insurance business up 32% year-on-year, car concierge business up 22% year-on-year, and technology services revenue up 19% year-on-year. Management Commentary In the third quarter of 2026, SunCar announced the appointment of Eric H. Zhang as Chief Financial Officer. Eric H. Zhang has entrepreneurial and investment experience in the artificial intelligence field and is the founder and chairman of First Pacific Technology Group, which focuses on the development of and investment in AI-related technologies. Prior to founding First Pacific, Eric H. Zhang served as manager of Oracle Corporation's (Oracle) North China region. He holds a bachelor's degree in computer science from Harvard University and pursued graduate studies in computer science and engineering at the Massachusetts Institute of Technology (MIT). SunCar Chief Financial Officer Eric H. Zhang said: "As a director and current Chief Financial Officer of SunCar, I have witnessed the Company's continuous development under the leadership of Mr. Ye Zaichang, driven by its sustained focus on China's automotive aftermarket. By leveraging artificial intelligence technology to empower daily operations, SunCar has accelerated transaction processing speed and reduced internal management costs, driving revenue and profit growth." "Looking ahead, the Company will continue to leverage China's vast automotive services market, the ongoing digitalization process, and the rapidly growing electric vehicle (EV) market to seek new partners and expand into new business areas." Regarding SunCar's results forecast for the first nine months of 2026, the Company's Chief Executive Officer and Chairman Ye Zaichang said: "As our automotive and corporate partners are highly focused on enhancing customers' long-term value, the Company's core business segments (automotive services and automotive e-insurance) achieved strong growth. As we noted in previous quarters, we are also seeing growing synergies between the automotive services and insurance segments." "SunCar has an AI technology platform that connects partners with long-term aftermarket revenue streams related to vehicle ownership. China has 371 million vehicles and is the world's largest automotive market." "SunCar's platform enhances the car owner's experience and reduces the cost of vehicle ownership. At the same time, the platform enables partners to tap into large-scale long-term aftermarket revenue streams." AI Technology Platform and Business Synergies The Company stated that its AI cloud platform capabilities and its network of cooperation with new energy vehicle companies are important components of its business layout. Leveraging the accumulation of data on tens of millions of vehicles, the Company has built a dynamic risk assessment system in collaboration with ByteDance's Doubao large model to support vehicle model underwriting and policy issuance as well as personalized matching of non-auto insurance products. The Company's self-developed intelligent auto insurance pricing engine and AI renewal intelligent outbound calling system have been implemented at Huawei Qiankun ecosystem partner brands such as HIMA and GAC Qijing. According to the Company, the relevant systems help improve renewal conversion efficiency and customer experience at automaker stores. In addition, the Company's renewal center has provided AI outbound calling services for renewal business to automakers such as Tesla, Inc., XPeng, and Xiaomi, and the Company says the relevant applications can save 70% of labor costs. On the service fulfillment side, the Company relies on more than 48,000 automotive service outlets nationwide to build a service system covering insurance purchase, underwriting, claims, roadside assistance, maintenance, and predictive maintenance, extending auto insurance services from post-incident claims to full vehicle lifecycle management. The Company has also applied an AI image quality inspection module to service scenarios such as chauffeur cars and car washing and detailing, using large models to perform quality inspection on photos of serviced vehicles. According to the Company, the relevant application has increased quality inspection efficiency by 400%. In addition, by analyzing call recordings between customers and customer service personnel, the Company uses models to identify semantics, tone, and communication content to assist in evaluating customer service quality. As of now, the Company's auto insurance service ecosystem has covered more than 20 new energy vehicle brands, including Tesla, Inc., Xiaomi, NIO Inc. Sponsored ADR Class A, XPeng, Li Auto, HIMA, Zeekr, Leapmotor, Avatr, and GAC Qijing. The Company states that it has established a certain business scale in the fields of EV auto insurance and B2B automotive services. Full-Year Results Guidance The Company maintains its forecast of US$600 million in full-year 2026 operating revenue unchanged. The Company stated that, with the expansion of cooperation with new energy vehicle companies, an increase in the proportion of renewal business, and the implementation of its AI technology platform at more partners, it expects operating conditions to continue improving in the second half of the year.