Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 63

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 63
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 against us and the depositary. If
a lawsuit is brought against either or both of us and the depositary bank under the deposit agreement, it may be heard only by a judge
or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different
outcomes than a trial by jury would have, including results that could be less favorable to the plaintiff(s) in any such action.

Nevertheless, if this jury
trial waiver provision is not enforced, to the extent a court action proceeds, it would proceed under the terms of the deposit agreement
with a jury trial. No condition, stipulation or provision of the deposit agreement or ADSs shall relieve us or the depositary bank from
our respective obligations to comply with the Securities Act and the Exchange Act.

Additional disclosure requirements to be
adopted by and regulatory scrutiny from the SEC in response to risks related to companies with substantial operations in China could
increase our compliance costs, subject it to additional disclosure requirements, and/or suspend or terminate our future securities offerings,
resulting in difficulties in our capital-raising.

On July 30, 2021, in
response to the recent regulatory developments in China and actions adopted by the PRC government, the Chairman of the SEC issued a statement
asking the SEC staff to seek additional disclosures from offshore issuers associated with China-based operating companies before their
registration statements will be declared effective. As such, the Transactions may be subject to additional disclosure requirements and
review that the SEC or other regulatory authorities in the United States may adopt for companies with China-based operations, which
could increase our compliance costs, subject us to additional disclosure requirements, and/or suspend or terminate our future securities
offerings, resulting in difficulties in its capital-raising.

Our principal shareholders, including the
Founder, have the ability to exert significant influence over important corporate matters that require the approval of shareholders,
which may deprive you of an opportunity to receive a premium for Company ADSs and materially reduce the value of your investment.

Mr. Chao Gao (by himself
and by virtue of an acting-in-concert agreement) beneficially owns 45,441,182 Ordinary Shares and will be able to exercise 62.6% of the
total voting power of the total issued and outstanding share capital of our Company, pursuant to certain acting-in-concert agreement
entered into among Upward Stars Group Limited, Two Courage Brothers Limited, Three Action Brothers Limited, Victorious Lights Holding
Limited, Five Epic Brother Limited