Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 53

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 53
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 penalties.

The Standing Committee of
the National People’s Congress enacted the Labor Contract Law in 2008, and amended it on December 28, 2012. The Labor Contract
Law introduced specific provisions related to fixed-term employment contracts, part-time employment, probationary periods, consultation
with labor unions and employee assemblies, employment without a written contract, dismissal of employees, severance, and collective bargaining
to enhance previous PRC labor laws.

Under the Labor Contract
Law, an employer must sign a labor contract of unlimited term with any employee who has worked for the employer for ten consecutive years.
Furthermore, if an employee requests or agrees to renew a fixed-term labor contract that has already been entered into twice consecutively,
the resulting contract, with certain exceptions, must have an unlimited term, subject to certain exceptions.

With certain exceptions,
an employer must pay severance to an employee where a labor contract is terminated or expires. In addition, PRC governmental authorities
have introduced various new labor-related regulations since the effectiveness of the Labor Contract Law. Under the PRC Social Insurance
Law and the Administrative Measures on Housing Fund, employees must participate in pension insurance, work-related injury insurance,
medical insurance, unemployment insurance, maternity insurance, and housing funds. Employers must apply for social insurance registration
and open housing fund accounts for the employees and are required, together with their employees or separately, to pay the social insurance
premiums and housing funds for their employees.

Certain of the our PRC Subsidiaries
have not made full contributions to social security insurance plans and housing provident fund for our employees in compliance with the
relevant PRC regulations. As a result, we may be required to make up the contributions for these plans as well as to pay late fees and
fines.

As the interpretation and
implementation of these regulations are evolving, employment practices of the our PRC Subsidiaries may not be at all times deemed in
compliance with the regulations. As a result, these entities could be subject to penalties or incur significant liabilities in connection
with labor disputes or investigations.

Risks Related to Our Securities

The price of our securities may be volatile, and the value of
its securities may decline.

We cannot predict the prices
at which its securities will trade. The price of our securities may not bear any relationship to the market price at which its securities
will trade to any other established criteria of the value of its business and prospects, and the market price of its securities may fluctuate
sub