Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 37

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 37
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 on the global economy is still uncertain. Even before the outbreak
of COVID-19, the global macroeconomic environment was facing numerous challenges. There is considerable uncertainty over the
long-term effects of the monetary and fiscal policies adopted by the central banks and financial authorities of some of the world’s
leading economies, including the United States and China. In addition, the trade tension between the United States and China,
the conflict in Ukraine and the imposition of broad economic sanctions on Russia also create uncertainty and challenges to the development
of global economic condition. Any prolonged slowdown in the global or Chinese economy may have a negative impact on individual disposable
income and in turn our business, financial condition and results of operations, and continued turbulence in the international capital
markets may adversely affect our access to capital markets to meet liquidity needs.

The development of the PRC legal system
and changes in the interpretation and enforcement of PRC laws, regulations and policies in China could materially and adversely affect
us and cause our securities to significantly decline in value or become worthless.

Our operations are governed
by PRC laws, rules and regulations. Since the late 1970s, the PRC government has promulgated laws and regulations dealing with economic
matters, such as foreign investment, corporate organization and governance, commerce, taxation and trade, with a view towards developing
a comprehensive system of commercial law. However, as many of these laws and regulations are relatively new and may continue to evolve,
these laws and regulations maybe subject to further interpretation. As in other civil law countries, there is a limited volume of published
court decisions which may be cited for reference but are not binding on subsequent cases and have limited precedential value unless the
Supreme People’s Court otherwise provides. As these laws and regulations are continually evolving in response to changing economic
and other conditions, and any non-compliance with any existing or new laws and regulations may adversely affect the legal protections
and remedies that are available to investors and us. Such limitation on legal protection could cause disruption to our business operations
and damage our reputation, which would materially and adversely affect our financial condition and results of operations and cause our
securities to significantly decline in value or become worthless.

You may experience difficulties in effecting
service of legal process, enforcing foreign judgments or bringing actions in China or Cayman Islands against us or our management named
in this annual report based on foreign laws.

We conduct the majority of
our business in China and substantially all of our assets are located in China. In addition,