Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 585

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 585
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 by assessing whether a loss is deemed probable and can be reasonably estimated. Although the outcomes of these legal proceedings cannot be predicted, the Group does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. As of June 30, 2024, the Group is not a party to any material legal or administrative proceedings. 20.RESTRICTED NET ASSETS A significant portion of the Group’s operations are conducted through its PRC (excluding Hong Kong) subsidiaries, the Group’s ability to pay dividends is primarily dependent on receiving distributions of funds from subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by our subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. The Group is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after -taxnet income determined in accordance with generally accepted accounting principles of the PRC (“PRC GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10% of the after -taxnet income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity’s registered capital. Appropriations to the surplus reserve are made at the discretion of the shareholders. Paid -incapital of our subsidiaries included in the Company’s consolidated net assets are also non -distributablefor dividend purposes. As a result of these PRC laws and regulations, the Group’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. As of June30, 2024 and 2023, net assets restricted in the aggregate, which include paid -incapital and statutory reserve funds of the Group’s PRC subsidiaries, that are included in the consolidated net assets were nil and $21.6million, respectively. 21.SUBSEQUENT EVENTS The Group evaluated all events and transactions that occur after June 30, 2024, other than the event disclosed below, there is no other subsequent event occurred that would require recognition or disclosure in the Group’s consolidated financial statements. On August 23, 2024, a Subscription Agreement (“Subscription Agreement of Global A”) is being entered into between Scage International Limited (“the Company”) and Global A Plus Investment SPC Ltd. (“Global A”), in which Global A promises to subscribe 1