Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 43

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 43
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 and acquisitions established procedures and requirements for acquisition of Chinese companies
by foreign investors, including requirements in some instances that MOFCOM be notified in advance of any change-of-control transaction in
which a foreign investor takes control of a PRC domestic enterprise. Moreover, the Anti-monopoly Law promulgated by the SCNPC requires
that transactions which are deemed concentrations and involve parties with specified turnover thresholds must be cleared by the anti-monopoly enforcement
agency before they can be completed. In addition, the Measures for the Security Review of Foreign Investment promulgated by the NDRC
and MOFCOM in December 2020 specify that foreign investments in military, national defense-related areas or in locations in
proximity to military facilities, or foreign investments that would result in acquiring the de facto control over domestic enterprises
in certain key sectors, such as critical agricultural products, energy and resources, equipment manufacturing, infrastructure, transport,
cultural products and services, information technology, internet products and services, financial services and technology sectors, are
required to obtain approval from designated government authorities in advance.

In the future, we may pursue
potential strategic acquisitions that are complementary to its business. Complying with the requirements of the above-mentioned regulations
and other rules to complete such transactions could be time-consuming, and any required approval processes may delay or inhibit our ability
to complete such transactions, which could affect our ability to expand business or maintain market share. Furthermore, there is a possibility
that the PRC regulators may promulgate new rules or explanations requiring that we obtain the approval of MOFCOM or other PRC government
authorities for its mergers and acquisitions. We cannot assure you that we can obtain such approval from MOFCOM or any other relevant
PRC government authorities for its mergers and acquisitions. Any non-compliance with such approval requirements could have a material
adverse effect on our business, results of operations and corporate structure.

PRC regulations of loans to and direct
investment in PRC entities by offshore holding companies and legal requirements and procedures of currency conversion may delay or prevent
us from using proceeds from offshore fund-raising activities, to make loans or additional capital contributions to the PRC Subsidiaries,
which could materially and adversely affect the liquidity of us, as well as our ability to fund and expand our business.

Any funds we transfers to
the PRC Subsidiaries, either as shareholder loans or as an increase in registered capital, are subject to approval by or registration
with relevant governmental authorities