Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 23

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 23
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 or other adverse public health developments in the areas where we operate,
including but not limited to the severe acute respiratory syndrome, the H5N1 avian flu, the human swine flu, also known as Influenza
A (H1N1), or COVID-19, could materially disrupt our business and operations. For example, since the end of December 2019, the outbreak
of COVID-19 has affected many people globally, caused temporary suspension of production and shortage of labor and raw materials in affected
regions, and disrupted local and international travel and economy. During the COVID-19 pandemic, we experienced temporary disruptions
to product supply and delivery in affected regions from time to time. The exacerbation, continuance or reoccurrence of COVID-19 has already
caused and may continue to cause an adverse and prolonged impact on the economic, geopolitical, and social conditions in relevant countries,
and could in turn materially and adversely affect our business operations and financial performance, including but not limited to those
related to: (1) decreased customer demand for heavy-duty NEV trucks; (2) decreased offline marketing activities caused by quarantine
measures imposed by local governments according to applicable laws and regulations, which are beyond our control; (3) supply chain
disruption or disruption of the operations of our business partners, including our contract manufacturers and suppliers for raw materials
and vehicle components; and (4) increased volatility or significant disruption of global capital markets due in part to the COVID-19
pandemic, which may adversely affect our ability to access capital markets and other funding sources on acceptable terms or at all. We
cannot be entirely certain as to whether its impact will be completely alleviated.

In addition to the impact
of the COVID-19 pandemic, natural disasters, such as fires, earthquakes, hurricanes, floods, tornadoes, unusual weather conditions,
power outages, other pandemic outbreaks, terrorist acts or disruptive global political events, or similar disruptions could materially
and adversely affect our business operations and financial performance. In particular, rising inflation and geopolitical tensions, including
the recent war in Ukraine, have had, and could continue to have, an adverse impact on the global supply chain, including the availability
and costs of certain raw materials, such as aluminum and steel. If any of our service centers and warehouse spaces is damaged by these
events, our operations may be significantly interrupted, and our business, results of operations and financial condition may be adversely
affected. These events could also result in server