Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 107

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 107
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 the above preferential tax rates for small, low profit
enterprises.

According to [2021] No.13, announcement of the Ministry of Finance
and the State Taxation Administration, which became effective from January 1, 2021, an enterprise engaged in manufacturing business and
whose main operating revenue accounts for more than 50% of the total revenue, is entitled to claim an additional tax deduction amounting
to 100% of the qualified R& D expenses incurred in determining its tax assessable profits for that year. The same tax incentives policy
further applies to all enterprises according to [2022] No.16, announcement of the Ministry of Finance, the State Taxation Administration
and Ministry of Science and Technology, and [2023] No.7, announcement of the Ministry of Finance and the State Taxation Administration,
which became effective from January 1, 2022 and 2023, respectively.

According to [2023] No.7,
announcement of the Ministry of Finance and the State Taxation Administration, effective from January 1, 2023 onwards, enterprises engaging
in research and development activities are entitled to claim an additional tax deduction amounting to 100% of the qualified R& D expenses
incurred in determining its tax assessable profits for that year.

Comparison for the Years ended June 30, 2025
and 2024

Net revenues

Our net revenues increased
from US$6.1 million for the year ended June 30, 2024 to US$11.1 million for the year ended June 30, 2025.

Revenues from sales of NEVs
and components increased from US$6.1 million for the year ended June 30, 2024 to US$10.9 million for the year ended June 30, 2025. The
significant increase was primarily attributable to the increase in sales of NEV components, partially offset by the decrease in sales
of NEVs. We sold 24 sets of Artificial-intelligent Robot Transportation (“ ART”) components, 88 sets of NEV batteries, 6 Dragon
Kingand 20Q-trucksfor the year ended June 30, 2025, compared with 82Q-trucks, one Galaxy IIhigh-end version
model, and one electric tractor truck for the year ended June 30, 2024.

Revenues from provision
of vehicle modification services were US$0.2 million and nil for the years ended June