Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 149

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 149
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 in substantial costs and be a distraction to our management and scientific personnel. We face various challenges and risks in connection with our expansion into overseas markets. As we plan to explore overseas market opportunities and collaborate with local strategic partners, we will face risks associated with expanding into markets in which we have limited or no experience. We may be unable to attract a sufficient number of customers and business partners, fail to anticipate competitive conditions or face difficulties in operating effectively in these new markets. The expansion of our global and cross -borderbusinesses will also expose us to risks inherent in operating businesses globally, including, but not limited to: •inability to recruit international and local talents and deal with challenges in replicating or adapting our company policies and procedures to operating environments different from those of China; •lack of acceptance of the product and service offerings; •disruptions in the supply chain; •investigations regarding anti -dumping, trade wars, geopolitical tensions, political instability and general economic or political conditions in particular countries or regions; •challenges and increased expenses associated with staffing and managing global and cross -borderoperations and managing an organization spread over multiple jurisdictions; •trade barriers, such as import and export restrictions, tariffs, customs duties and other taxes, competition law regimes and other trade restrictions, as well as other protectionist policies; •differing and potentially adverse tax consequences; •increased and conflicting regulatory compliance requirements; •adaption to different industry practices; •challenges caused by distance, language and cultural differences; 48 •the impact of widespread health epidemics or other outbreaks, and natural disasters; •increased costs to protect the security and stability of our information technology systems, intellectual property and personal data, including compliance costs related to data localization laws; •availability and reliability of cross -borderpayment systems and logistics infrastructure; and •exchange rate fluctuations. As we expand further into new regions and markets, these risks could intensify, and efforts we make to expand our overseas businesses and operations may not be successful. Failure to expand our overseas businesses and operations could materially and adversely affect our business, results of operations and financial condition. Our research and development efforts may not yield the expected results. Technological innovation is critical to our success, and we strategically develop most of the key technologies in -house, such as the vehicle control system, the electronic steering system, and the hydrogen production technology. We have been investing heavily in our research and development efforts. As of June30, 2024, we had assembled a strong team of 33 in