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

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 11
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 assume
roles and positions in our affiliated entities or other business entities and may, as a result, not be able to devote their full efforts
to our affairs. If one or more of our executive officers or key employees were unable or unwilling to continue their services with us,
we may not be able to replace them easily in a timely manner, or at all. As we build up our brand awareness and become more well-known,
the risk that competitors or other companies may poach our talent increases.

Our industry is characterized
by high demand and intense competition for talent, and therefore, we cannot assure you that we will be able to continue to attract or
retain qualified staff or other highly skilled employees. In addition, because we are operating in a new and challenging industry that
requires continuous innovations of technologies and solutions, we may not be able to hire qualified individuals with sufficient training
in a timely manner, and we will need to spend significant time and resources training the employees we hire. Furthermore, as our Company
is relatively young, our ability to train and integrate new employees into our operations may not meet the growing demands of our business,
which may materially and adversely affect our ability to grow our business and our results of operations.

If any executive officer
or key employee terminates his or her services with us, our business may be severely disrupted, our results of operations and financial
condition may be materially and adversely affected, and we may incur additional expenses to recruit, train, and retain qualified personnel.
If any executive officer or key employee joins a competitor or forms a competing company, we may lose customers, know-how, and key professionals
and staff members. While each of our executive officers and key employees has entered into an employment agreement and a non-compete
agreement with us, if any dispute arises between our executive officers or key employees and us, the relevant non-competition provisions
may not be enforceable under PRC laws.

We need to develop complex technology and
operating systems, both in-house and in coordination with vendors and suppliers, to successfully collaborate in producing and
operating our NEV trucks, and we cannot assure you that such systems will be successfully developed.

Products and services that
we collaborated in developing or providing will require a substantial amount of third-party and in-house software and complex
hardware to operate. The development of such advanced technologies is inherently complex and costly, and we will need to coordinate with
our suppliers in order to produce and operate our NEV trucks in collaboration with vehicle manufacturers. Defects and