Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 8

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 8
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 commencing sales.
In addition, the performance of our trucks may not live up to customer expectations or be comparable with other competing vehicles in
the market. Any product defects or perceived underperformance can lead to negative publicity, revenue loss, delays in deliveries, recalls,
liability claims, and substantial warranty and related costs, which in turn would materially and adversely affect our business, reputation,
prospects, results of operations and financial condition.

Any adverse change in our cooperation with
our business partners could harm our business.

Strategic business relationships
are and will continue to be an important factor in the growth and success of our business. We have formed alliances and partnerships
with other companies across various industries to support our business initiatives. For example, we have established strategic collaboration
with vehicle manufacturers for production of our NEV trucks. We have also collaborated with other industry participants to develop
hydrogen fueling stations and promote the V2X transportation model. Our ongoing success depends on maintaining these relationships and
forging new ones, especially with partners offering key components and parts, manufacturing, and distribution services. If we are unable
to maintain the existing partnerships, or if we fail to identify and negotiate additional ones that are essential to our future expansion
or success on favorable terms or at all, we may incur increased costs to develop and provide these capabilities on our own, and our business,
results of operations and financial condition could be materially and adversely affected.

Collaboration with third
parties is subject to challenges and risks, some of which are beyond our control. For example, certain collaboration agreements grant
our partners or us the right to terminate such agreements for cause or without cause, including in some cases by paying a termination
for convenience fee. In addition, such agreements have in the past and may in the future contain certain exclusivity provisions which,
if triggered, could preclude us from working with other businesses with superior technologies or other preferred business partners.

We could experience delays
in the development or delivery of products and services that we collaborated in developing if our business partners do not meet agreed-upon
timelines or experience capacity constraints. We could also have disagreements with our business partners in budget or funding for any
joint development project. Disputes with business partners, including with respect to intellectual property rights, could arise in the
future. Moreover, if our existing collaborations were to be terminated, we may be unable to find alternative ones on terms and conditions
acceptable to us in time, or at all. Any of the foregoing could adversely