Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 18

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 18
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181.6                                                 7,868,925      110.1  

Cost of sales of NEVs and components

Our cost of sales of NEVs
and components includes costs for vehicle parts, materials, processing charges, labor costs, manufacturing overheads (including depreciation
of assets associated with the production) and reserves for estimated warranty expenses. Cost of sales of NEVs and components also includes
write-down of the carrying value of the inventories when it exceeds its estimated net realizable value and to provide write-down for inventories
that are either obsolete or in excess of forecasted demand.

Cost of provision of vehicle modification services

Our cost of provision of
vehicle modification services generally includes cost of parts, materials, labor costs, costs associated with providing after-sales services
and depreciation of associated assets used for providing the services.

Cost of leasing of NEVs

Our cost related to leasing
of NEVs primarily consists of depreciation of the leased vehicles.

Gross profit/(loss) and gross profit/(loss)
margin

The following table sets
forth the breakdown of our gross loss and gross loss margin by revenue streams for the periods indicated.

                                                  For the fiscal years ended June 30,                                            For the six months ended December 31,                           
                                                  2024                                                                           2024                                                            
                                                  US$                                                                            US$                                                             
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Gross profit/(loss):                                                                                                                                                                           
  Sales of NEVs and components                                                             536,456      (339,194      (77.4                                                 (799,222      (11.4  
  Provision of vehicle modification services                                               -                   -          -                                                   73,957       74.2  
  Leasing of NEVs                                                                          -             (18,122       (4.2                                                    4,008       57.6  
  Total gross profit/(loss)                                                                536,456      (357,316      (81.6                                                 (721,257      (10.1  

Operating expenses

Our operating expenses include
general and administrative expenses, research and development expenses, selling and marketing expenses and impairment of long-lived assets.
The following table sets forth our operating expenses, in absolute amounts and as a percentage of our total revenues for the periods indicated.

 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Operating expenses:                                                                                                                
  General and administrative expenses      3