Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 27

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 27
---
, employees, representatives, consultants, agents,
and business partners could engage in improper conduct for which we may be held responsible.

Non-compliance with
anti-corruption, anti-bribery, anti-money laundering or financial and economic sanctions laws could subject us to whistle-blower complaints,
adverse media coverage, investigations, and severe administrative, civil and criminal sanctions, collateral consequences, remedial measures
and legal expenses, all of which could materially and adversely affect our business, results of operations, financial condition and reputation.
In addition, changes in economic sanctions laws in the future could adversely impact our business and investments in our shares.

Risks Related to Doing Business in China

The PRC government has significant authority
to exert influence on the China operations of an offshore holding company, and offerings conducted overseas and foreign investment in
China-based issuers, such as us. Changes in China’s economic, political or social conditions or government policies could have
a material adverse effect on our business, results of operations, financial condition and the value of our securities.

We conduct our business in
China through Nanjing Scage, and substantially all of our assets will be located in China. Accordingly, our business, results of operations
and financial condition may be influenced to a significant degree by the political, economic, and social conditions in the PRC. The
PRC government may intervene or influence our operations, subject to necessary procedures, and may strengthen regulatory
oversight and control over offerings conducted overseas and/or foreign investment in China-based issuers, such as us, which could result
in a material change in our operations and/or the value of our securities.

The economic, political and
social conditions in China differ from those of the countries in other jurisdictions in many respects. The PRC government has implemented
measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and
the establishment of improved corporate governance in business enterprises. These reforms have resulted in significant economic growth
and social prospects. Economic reform measures may also be adjusted or modified in the future, and we cannot assure you that
the policies that the Chinese pursue will have a favorable impact on our operations.

Chinese economy has experienced
significant growth in the past four decades. Various measures implemented by the PRC government to encourage economic growth may benefit
the overall Chinese economy, but may also have a negative effect on us. The financial condition and results of operations could be materially
and adversely affected by relevant regulations and policies over capital investments, foreign investment or