Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 40

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 40
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 against rumors, and increase the premiums we pay for
director and officer insurance.

The tension in international trade and
rising political tension, particularly between the United States and China, may adversely impact our business, financial condition
and results of operations.

Our business could be materially
and adversely affected by the tensions in international trade such as the one between the United States and China in recent years.
Changes to international trade policies could adversely affect the global economic conditions. In addition, geopolitical tensions between
the United States and China have escalated due to, among other things, trade disputes, the COVID-19 outbreak, sanctions imposed
by the U. S. Department of Treasury, and the executive orders issued by the U. S. government that may prohibit transactions with
certain selected Chinese companies as well as their products and services. Rising political tensions could reduce levels of trades, investments,
technological exchanges, and other economic activities between the two major economies. Such tensions involving China, and any escalation
thereof, may negatively affect trading and business environments, which may, in turn, adversely impacting our business, financial condition
and results of operations.

We rely on dividends and other distributions
on equity paid by its PRC subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of
our PRC subsidiaries to make payments to us could have a material adverse effect on its ability to conduct its business.

We are a Cayman Islands holding
company with no material operation of its own. We rely on dividends and other distributions on equity paid by its PRC subsidiaries for
cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to its shareholders and
service any debt we may incur. To the extent its cash or assets in the business are in mainland China or Hong Kong or a mainland
China or Hong Kong entity, the funds or assets may not be available to fund operations or for other use outside of mainland China
or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of us or our subsidiaries
to transfer cash or assets. Current PRC regulations permit our PRC subsidiaries to pay dividends to us only out of their accumulated
after-tax profits upon satisfaction of relevant statutory conditions and procedures, if any, determined in accordance with Chinese accounting
standards and regulations. In addition, Our PRC subsidiaries are required to set aside at least 10% of its accumulated profits each year,
after making up previous years’ accumulated losses, if any, to fund certain reserve