Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 211

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 211
---
 credit risk is their carrying amount as at the balance sheet dates. As of June 30, 2025 and 2024, the Group
had cash and restricted cash of US$ 97,738 1,984,374 69,797 500,000 19,491 284,453

The
Group’s operations are carried out in China. Accordingly, the Group’s business, financial condition and results of operations
may be influenced by the political, economic and legal environments in the PRC, as well as by the general state of the PRC’s economy.
In addition, the Group’s business may be influenced by changes in governmental policies with respect to laws and regulations, anti-inflationary
measures, currency conversion and remittance abroad, rates and methods of taxation, among other factors.

Foreign
currency risk

Substantially
all of the Group’s revenues and expenses and assets and liabilities are denominated in RMB, which is not freely convertible into
foreign currencies. All foreign exchange transactions take place either through the Peoples’ Bank of China (“ PBOC”)
or other authorized financial institutions at exchange rates quoted by PBOC. Approval of foreign currency payments by the PBOC or other
regulatory institutions requires submitting a payment application form together with suppliers’ invoices and signed contracts.
The value of RMB is subject to changes in central government policies and to international economic and political developments affecting
supply and demand in the China Foreign Exchange Trading System market.

Concentration
risks

Accounts
receivable is typically unsecured and derived from goods sold and services rendered to customers that are located primarily in China,
thereby exposed to credit risk. The risk is mitigated by the Group’s assessment of customers’ creditworthiness and its ongoing
monitoring of outstanding balances. Refer to Note 20 for details.

F-22

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

(In
U. S. dollars, except for share and per share data, or otherwise noted)

  SUMMARY                                     
  OF SIGNIFICANT ACCOUNTING POLICIES (cont.)  
 ──────────────────────────────────────────────

  (ae)      Recent accounting pronouncements  

The
Group is an emerging growth company (“ EGC”) as defined by the Jumpstart Our Business Startups Act (“ JOBS Act”).
The JOBS Act provides that an EGC can take advantage of extended transition periods for complying with new or revised accounting standards.
This