Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 346

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 346
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,000 units and 3,000 units, respectively, and both vehicle manufacturers have reserved production capacity for the manufacture of our vehicles. In the event that we are unable to renew our contract manufacturing agreements with XCMG and/or C&C, we believe we can establish collaborations with other vehicle manufacturers possessing comparable capacity and capability to meet our vehicle production demands, and we do not expect such termination to have a material adverse impact on our operations, business or financial performance, or lead to any substantial delays in the manufacturing and delivery of our vehicles. Manufacturing process The manufacturing process varies among the different models and different plants. The principal steps of the manufacturing process for our vehicles include the following. • Key component assembly. We procure vehicle parts and assemble the vehicle control unit, the P2 hybrid system, the electric drive axles, among other components. We then deliver intermediate products to our contracted vehicle manufacturers. • Stamping and welding. Steel and other metal materials are stamped to form into desired shape and molding and are subsequently welded into plain vehicle body. • Painting. Through coating, electrophoresis, painting and baking, a corrosion -resistant, colored print layer will be formed on the vehicle body. • Vehicle assembly. In the vehicle assembly process, thousands of vehicle parts are assembled together in a specified order onto their respective positions in accordance with our manufacturing standards and arrange into the final product. • Testing. We inspect vehicle performance in the testing stage to ensure that the vehicle comply with national regulations, design standards and customer specifications. The testing processes include, among others, wheel alignment, light test, brake test, speed test, electrical function test and dynamic road test. Our suppliers We use various components and raw materials in our business, including batteries, axles, motors, power distribution units and battery cooling systems. In our procurement process, we choose suppliers based on a variety of factors, such as technological expertise, product quality, and reliable manufacturing process. We have implemented supplier screening and quality control processes, including mold and prototype review, sample review, manufacturing process tracking and on -sitevisits, to ensure the quality of components sourced from our suppliers. Additionally, we conduct quarterly evaluations of our suppliers’ performance. As of June30, 2024, the majority of our suppliers had been certified with ISO 9001, ISO 14001 and other management system certificates. We purchase our components and materials from suppliers in China. We source from approximately 220 suppliers for approximately 2,800 components and parts for our vehicles. While we aim to diversify