Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 33

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 33
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RC approval, filing, other governmental authorization or requirements,
we cannot assure you that we or the PRC Subsidiaries could obtain such approval or meet such requirements in a timely manner or at all.
Such failure may subject us or the PRC Subsidiaries to fines, penalties or other sanctions which may have a material adverse effect on
our business and financial condition.

Recent greater oversight by the CAC over
data security, particularly for companies seeking to list on a foreign exchange, could significantly limit or completely hinder our ability
in capital raising activities and materially and adversely affect our business and the value of your investment.

On December 28, 2021,
the NDRC, the MIIT, and several other administrations jointly published the Measures for Cybersecurity Review, effective on February 15,
2022, which required that, among others, operators of “critical information infrastructure” purchasing network products and
services or network platform operators carrying out data processing activities, that affect or may affect national security, shall apply
with the Cybersecurity Review Office for a cybersecurity review. In addition, a network platform operator holding over one million users’
personal information shall apply with the Cybersecurity Review Office for a cybersecurity review before any public offering at a foreign
stock exchange. On November 14, 2021, the CAC released the draft Administrative Regulations for Internet Data Security (Draft for
Comments) (the “ Draft Regulations for Internet Data Security”), which requires, among others, that a prior cybersecurity
review should be required for listing abroad of data processors which process over one million users’ personal information, and
the listing of data processors in Hong Kong which affects or may affect national security.

On July 7, 2022, the
CAC promulgated the Measures for the Security Assessment of Cross-Border Transfer of Data, which took effect on September 1, 2022.
These measures aim to regulate cross-border transfers of data, requiring among other things, that data processors that provide data overseas
shall apply to CAC for security assessments if: (1) data processors provide important data overseas; (2) critical information
infrastructure operators or data processors processing personal information of more than one million individuals provide personal information
to overseas parties; (3) data processors that have cumulatively provided personal information of 100,000 people or sensitive personal
information of 10,000 people to overseas since January 1 of the previous year, provide personal information to overseas parties;
or (4) other scenarios required by