Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 39

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 39
---
-border regulatory cooperation mechanism, and the CSRC or other competent Chinese authorities will provide necessary
assistance pursuant to bilateral and multilateral cooperation mechanisms. The domestic company, securities companies and securities service
providers shall first obtain approval from the CSRC or other competent Chinese authorities before cooperating with the inspection and
investigation by the overseas securities regulator or competent overseas authority, or providing documents and materials requested in
such inspection and investigation. Furthermore, as of the date of this annual report, there have not been implementing rules or regulations
regarding the application of Article 177. Although the authorities in China may establish a regulatory cooperation mechanism with
the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation
with the securities regulatory authorities in the Unities States may not be efficient in the absence of mutual and practical cooperation
mechanism. If the U. S. securities regulatory agencies are unable to conduct such investigations, there exists a risk that they may
determine to suspend or de-register our registration with the SEC and may also delist our securities from trading market within
the United States. See “ - Risks Related to our Securities - You may face difficulties in protecting your interests,
and your ability to protect your rights through U. S. courts may be limited.”

Recent litigation and negative publicity
surrounding China-based companies listed in the United States may result in increased regulatory scrutiny of us and negatively impact
the trading price of our securities.

We believe that litigation
and negative publicity surrounding companies with operations in China that are listed in the United States have negatively impacted
stock prices for such companies. Certain politicians in the United States have publicly warned investors to shun China-based companies
listed in the United States. The SEC and the PCAOB also issued a joint statement on April 21, 2020, reiterating the disclosure,
financial reporting and other risks involved in the investments in companies that are based in emerging markets as well as the limited
remedies available to investors who might take legal action against such companies. Furthermore, various equity-based research organizations
have published reports on China-based companies after examining, among other things, their corporate governance practices, related party
transactions, sales practices and financial statements that have led to special investigations and listing suspensions on U. S. national
exchanges. Any similar scrutiny of us, regardless of its lack of merit, could cause the market price of our securities to fall, divert
management resources and energy, cause us to incur expenses in defending ourselves