Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 194

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 194
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 losses, estimates
for inventory write-downs, warranty reserve and impairment of long-lived assets.

F-11

SCAGE
FUTURE

NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS

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

  SUMMARY                                     

  (f)      Foreign currency translation and transaction  

The
Group uses U. S. dollars (“ US$”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated
outside of PRC is US$, while the functional currency of the PRC entities is Renminbi (“ RMB”) as determined based on the criteria
of ASC 830, “ Foreign Currency Matters”.

The
consolidated statements of operations and comprehensive loss and the consolidated statements of cash flows denominated in foreign currency
are translated at the average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies
at the balance sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional
currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated based
on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash flows will
not necessarily agree with changes in the corresponding balances on the consolidated balance sheets.

Translation
adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated
other comprehensive loss included in the consolidated statements of changes in shareholders’ deficit. Gains and losses from foreign
currency transactions are included in the consolidated statements of operations and comprehensive loss.

The
following table outlines the currency exchange rates that were used in creating the consolidated financial statements:

                                                       As of June 30,                                    
  Balance sheet items, except for equity accounts                2025                  2024              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────
  US$ against RMB                                                          7.1636                7.2672  

                                                                          For the years ended June 30,                                                          
  Items in the statements of operations and comprehxensive loss, and                              2025                  2024                  2023              
  statements of cash flows                                                                                                                                      
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  US$ against RMB                                                                                           7.2143                7.2248