Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 15

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 15
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 million and US$2.8 million in the fiscal years ended June 30, 2024 and 2023 and the six months
ended December 31, 2024 and 2023, respectively.

Key Factors that Affect Operating Results

The demand for our heavy-duty
commercial NEVs is affected by various general factors, primarily including (1) the macroeconomic conditions in China and the growth of
the global and China’s heavy-duty commercial NEV markets; (2) customer acceptance and penetration rate of heavy-duty commercial
NEVs, which are in turn affected by, among other things, functionality and performance of heavy-duty commercial NEVs, total cost of ownership
and availability of energy refuel solutions; and (3) government policies and regulations for heavy-duty commercial NEV industry,
such as subsidies for heavy-duty commercial NEV purchases and government grants for manufacturers. Changes in any of these general industry
conditions could affect our business and results of operations.

In addition to the general
factors affecting the heavy-duty commercial NEV market, our business and results of operations are also affected by specific factors,
including the following major factors.

Our ability to attract new customers and
grow our customer base

We intend to continue to
enhance customer acquisition and accelerate the commercialization of our vehicles by deepening engagement with industry-leading corporate
customers and providing tailored services. We plan to routinely communicate with industry customers to keep ourselves informed of their
evolving business needs and develop vehicle models and features accordingly. Leveraging our hydrogen production capability, we also plan
to assist our customers with energy supply and customize energy solutions for our customers. We believe such tailored product and service
offerings will increase customer stickiness and expand our existing customer base. In addition, we plan to expand to broader regions across
China to reach new prospective customers, by opening direct stores and developing more sales partners to serve as on-the-ground outposts
for customer outreach. Moreover, we will provide professional one-on-one after-sales support to our major customers to ensure the optimal
customer experience.

Our competitiveness and continued expansion
of our heavy-duty commercial NEV portfolio

Competition in the heavy-duty
commercial NEV industry is intense and rapidly evolving. We believe the impact of new regulatory requirements for vehicle emissions, technological
advances, as well as shifting customer needs and expectations are causing the industries to evolve in the direction of zero-emission solutions.
Our ability to periodically introduce new NEV models will be an important contributor to our future growth. We have