Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 144

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 10
Chunk 144
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 Improving the Foreign Exchange Management Policies for Direct Investment (“ SAFE
Circular 13”), which took effect on June 1, 2015 and was amended in December 2019. SAFE Circular 13 delegates the power
to enforce the foreign exchange registration in connection with inbound and outbound direct investments under relevant SAFE rules from
local branches of SAFE to banks, further simplifying the foreign exchange registration procedures for inbound and outbound direct investments.

On January 26, 2017,
SAFE issued the Notice on Improving the Examination of Authenticity and Compliance to Further Promote Foreign Exchange Control (“ SAFE
Circular 3”), which stipulates several capital control measures with respect to the outbound remittance of profit from domestic
entities to offshore entities, including the following:

  under the principle of genuine transaction, banks shall check                                                                      

  domestic entities shall hold income to account for previous years’  

Moreover, pursuant to SAFE
Circular 3, domestic entities shall make detailed explanations of the sources of capital and utilization arrangements, and provide
board resolutions, contracts and other proof when completing the registration procedures in connection with an outbound investment.

E. Taxation

Material U. S. Federal Income Tax Considerations

This section describes the
material U. S. federal income tax considerations for beneficial owners of Company Ordinary Shares, ADSs, and Assumed Warrants. This
discussion applies only to Company Ordinary Shares, ADSs and Assumed Warrants held as capital assets for U. S. federal income tax
purposes (generally, property held for investment) and does not discuss all aspects of U. S. federal income taxation that might be
relevant to holders in light of their particular circumstances or status, including alternative minimum tax and Medicare contribution
tax consequences, or holders who are subject to special rules, including:

  brokers, dealers and other investors that do not own their        

  traders in securities that elect to use a mark-to-market method  

  tax-exempt organizations, qualified retirement plans,           

  banks or other financial institutions, underwriters, insurance               

  U. S. expatriates or former long-term residents  

  persons that own (directly, indirectly, or by attribution)  

  partnerships or other pass-through entities for U. S. federal                              

  persons holding our Ordinary Shares, ADSs or Assumed Warrants                                                                        

  persons required to accelerate the recognition of any item                                                                                  

  persons whose functional currency is not the U. S. dollar;  

  persons that received our Ordinary Shares