Company: SCAG
Filing Date: 2025-01-06
Form Type: 424B3
Source: 0001213900-25-001215
Chunk: 281

Company: Scage Future
Filing Date: 2025-01-06
Form: 424B3
Chunk 281
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 of hydrogen fuel production, storage and transportation. •continued market penetration in international markets, specifically the Middle East and Southeast Asia, where Scage International’s offerings typically command prices 15% to 25% higher than prices in the domestic China market. •continued development of a complimentary suite of services to customers such as vehicle service and maintenance and financing leases, critical to increasing customer stickiness and ensuring the sustainability of the revenue streams described above. •assumptions with respect to gross margin, including: •lower cost of raw materials as the cost of raw materials was abnormally high in 2022 and 2023 due to Covid restrictions. •cash rebates from suppliers and vendors as sales volumes increase. This will increase gross margin until stabilizing after reaching annualized sales of 2,000 vehicles. A review of NEV OEM companies’ margins suggest that as NEV companies’ offerings reach mass production stage, the companies are able to achieve 15 -25% overall gross margin. •consistent increase in the gross profit margin percentage as costs of goods sold decreases for each product, driven by price optimization and economies of scale; and production capabilities improve as Scage International develops its own manufacturing facility. •assumptions with respect to operating expenses, including: •more resource allocation to marketing, channel development, and other areas as Scage International expands. Implementing operations on a larger scale will also improve efficiency in supply chain, logistics, and other aspects, which in turn will reduce operating expenses. Although some expenses related to listing are still included in the general and administrative expenses for FY24, it is expected that these costs will significantly decrease afterwards. •a decrease in the proportion of research and development expenses in relation to overall expenses as these expenses remain steady while other expenses increase in proportion to growth. 118

The Initial Projections with respect to revenue are set forth below:

|                                   |     | (Figures in RMB thousands)            
 For the Projected Fiscal Year Ending: |         |     |           |           |     |           |           |     |           |            |
|:----------------------------------|:----|:--------------------------------------|--------:|:----|:----------|----------:|:----|:----------|----------:|:----|:----------|-----------:|
| Revenue                           |     | 30-Jun-24                             |         |     | 30-Jun-25 |           |     | 30-Jun-26 |           |     | 30-Jun-27 |            |
| 49 tonne