Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 390

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 390
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 US$3.7 million; and (3) loans provided by related parties of US$0.6 million; partially offset by repayments of short -termbank loans of US$0.5 million. Off-Balance Sheet Commitments and Arrangements We have not entered into any off -balancesheet financial guarantees or other off -balancesheet commitments to guarantee the payment obligations of any third parties. We have not entered into any derivative contracts that are indexed to our shares and classified as shareholder’s equity or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages in leasing, hedging or product development services with us. 191 Inflation Since our inception, inflation in China has not materially affected our results of operations. According to the National Bureau of Statistics of China, the year -over -yearpercent changes in the consumer price index as of June30, 2024 remained relatively stable at 0.2% compared to in the consumer price index as of June30, 2023. Although we have not been materially affected by inflation in the past, we may be affected if China experiences higher rates of inflation in the future. Holding Company Structure PubCo will become our holding company upon the completion of the Business Combination. PubCo has no material operations of its own. We conduct a substantial majority of our operations through our operating subsidiaries in China. As a result, after the completion of the Business Combination, PubCo’s ability to pay dividends depends largely upon dividends paid by our subsidiaries including our PRC subsidiaries. If our existing PRC subsidiaries or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, our subsidiaries in China are permitted to pay dividends to us only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, each of our subsidiaries in China are required to set aside at least 10% of its after -taxprofits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. In addition, our subsidiaries in China may allocate a portion of its after -taxprofits based