Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 28

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 3
Chunk 28
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 changes in tax regulations
that are applicable to us. These measures may cause decreased economic activity, which in turn could lead to a reduction in demand for
our products and consequently have a material adverse effect on our business, financial condition and results of operations.

Additionally, the PRC government
may promulgate laws, regulations or policies that seek to impose stricter scrutiny over, or completely revise, the current regulatory
regime in certain industries or in certain activities. For instance, the PRC government has significant discretion over the business
operations in China and may intervene with or influence specific industries or companies as it deems appropriate to further regulatory,
political and societal goals, which could have a material adverse effect on the future growth of the affected industries and the companies
operating in such industries. Furthermore, the PRC government has also recently indicated an intent to exert more oversight and control
over overseas securities offerings and foreign investments in China-based companies. Any such actions may adversely affect our operations
and significantly limit or completely hinder our ability to offer or continue to offer securities to you and cause the value of such
securities to significantly decline or be worthless.

Our ability to successfully
maintain or grow business operations in China depends on various factors, which include, among others, macro-economic and other market
conditions, social conditions, changes in the rate or method of taxation, changes in laws, regulations and administrative directives
or their interpretation, and changes in industry policies. If we fail to take timely and appropriate measures to adapt to any of these
changes, our business, financial condition and results of operations could be materially and adversely affected.

Recent regulatory development in China
may exert more oversight and control over listing and offerings that are conducted overseas and foreign investment in China-based issuers,
which could result in a material change in our operations and significantly limit or completely hinder our ability to offer or continue
to offer securities to investors and cause the value of our securities to significantly decline. The approval or record-filing
of the CSRC may be required in connection with this offering and our future capital raising activities according to applicable laws and
regulations, and, if required, we cannot assure you that we will be able to obtain such approval or complete the record-filing, in which
case we may face regulatory sanctions for failure to comply with relevant requirements for this offering and our future capital raising
activities.

Under the current Regulations
on Merger and Acquisition of Domestic Enterprises by Foreign Investors (the “ M& A Rules”), as jointly adopted by six