Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 74

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4
Chunk 74
---
 commercial fuel cell vehicles, and the establishment of a hydrogen fuel supply system.
In the United States, the Internal Revenue Service (the “ IRS”) provides tax credits for businesses that purchase commercial
NEVs. These favorable policies are driving the adoption and penetration of commercial NEVs. According to an independent industry report from Frost & Sullivan, a third-party research firm commissioned
by Scage International(the “ F& S Report), the size of China’s heavy-duty commercial NEV market, in terms
of vehicle sales volume, increased from 0.9 thousand units in 2018 to 25.4 thousand units in 2022 at a CAGR of 127.9%, and was expected
to reach 275.6 thousand units in 2027, representing a CAGR of 65.9% from 2023 to 2027. The size of the global heavy-duty commercial
NEV market, in terms of vehicle sales volume, increased from 1.0 thousand units in 2018 to 27.3 thousand units in 2022 at a CAGR of 131.3%,
and was expected to reach 332.0 thousand units in 2027, representing a CAGR of 69.8% from 2023 to 2027, according to the same source.

Corresponding to the growth
of the heavy-duty commercial NEV market, the integrated intelligent commercial NEV solutions market is also expected to experience
substantial growth. Integrated intelligent commercial NEV solutions create a comprehensive ecosystem that encompasses all stages of the
commercial NEV industry value chain. The solutions seamlessly integrate vehicle design, technology development, manufacturing, sales,
after-sales services, and financial support to promote the widespread adoption of commercial NEVs. Integrated intelligent commercial
NEV solutions are tailored to different downstream application scenarios, providing customized technical support and services to meet
customers’ diverse requirements in terms of economy, safety, and performance.

Competitive Strengths

Pioneering and leading zero-emission solution
provider with global strategies, well positioned to capture the enormous market opportunities

We are a pioneering and leading
zero-emission solution provider in China, focusing on the development and commercialization of heavy-duty NEV trucks and e-fuel solutions.
We have participated in the design, production and testing of several NEV trucks, covering application scenarios for logistics, mining
and port transportation. Galaxy IItruck that we collaborated in developing is one of the earliest hybrid heavy-duty NEV
trucks to be commercialized in