Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 241

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 241
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 material legal or administrative proceedings.

  23.      RESTRICTED  

A
significant portion of the Group’s operations are conducted through its PRC (excluding Hong Kong) subsidiaries, the Group’s
ability to pay dividends is primarily dependent on receiving distributions of funds from subsidiaries. Relevant PRC statutory laws and
regulations permit payments of dividends by our subsidiaries only out of their retained earnings, if any, as determined in accordance
with PRC accounting standards and regulations, and after it has met the PRC requirements for appropriation to statutory reserves. The
Group is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus
reserve, based on after-tax net income or loss determined in accordance with generally accepted accounting principles of the PRC (“ PRC
GAAP”). Appropriations to the statutory surplus reserve are required to be at least 10 50

As
a result of these PRC laws and regulations, the Group’s PRC subsidiaries are restricted in their ability to transfer a portion
of their net assets to the Company. As of June 30, 2025 and 2024, net assets restricted in the aggregate, which include paid-in capital
and statutory reserve funds of the Group’s PRC subsidiaries, that are included in the consolidated net assets were US$ 0.4 nil

  24.      SUBSEQUENT  

The Group has evaluated
the impact of events that have occurred subsequent to June 30, 2025, through November 12, 2025, which is the issuance date of the
consolidated financial statements, and concluded that no other subsequent events have occurred that would require recognition in the
consolidated financial statements or disclosure in the notes to the consolidated financial statements.

  25.      CONDENSED                                    

Regulation
S-X requires the condensed financial information of a registrant shall be filed when the restricted net assets of consolidated subsidiaries
exceed 25 25

F-45

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  25.      CONDENSED                                            

The
Company performed a test on the restricted net assets of consolidated subsidiary in accordance with U. S. Securities and Exchange
Commission Regulation S-X Rule 4-08 (e) (3), “ General Notes to Financial Statements” and concluded that it was applicable
for the