Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 102

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 102
---
0  

Cost of revenues

The following table sets
forth a breakdown of our cost of revenues both in absolute amount and as a percentage of our total revenue for the years presented:

                                                  For the years ended June 30,                                                                              
                                                  2025                                                         2024                                         
                                                  US$                                                          US$                                          
 ────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Cost of revenues:                                                                                                                                         
  Sales of NEVs and components                                                      11,776,993      105.8                5,574,685      760,874      173.7  
  Provision of vehicle modification services                                            35,052        0.3                -              -            -      
  Leasing of NEVs                                                                        6,754        0.1                -              34,412       7.9    
  Others                                                                                16,952        0.2                -              -            -      
  Total cost of revenues                                                            11,835,751      106.4                5,574,685      795,286      181.6  

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.

Cost of others

Our others cost primarily
includes materials, processing charges and labor costs related to additional aftersales service, which mainly related to vehicle repairs
and maintenance upon customer demand.

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

The following table sets
forth the breakdown of our gross profit/(loss) and gross profit/(loss) margin by revenue streams for the years indicated.

                                                  For the years ended June 30,