Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 108

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 108
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 30, 2025 and 2024, respectively, primarily due
to vehicle modification orders received based on customers’ specific requirements for the year ended June 30, 2025.

Revenues from leasing of
NEVs were US$19,596 and nil for the years ended June 30, 2025 and 2024, respectively.

Revenues from others were
US$26,153 and nil for the years ended June 30, 2025 and 2024, respectively.

Cost of revenues

Our cost of revenues increased
from US$5.6 million for the year ended June 30, 2024 to US$11.8 million for the year ended June 30, 2025.

Our cost of revenues related
to sales of NEVs and components increased from US$5.6 million for the year ended June 30, 2024 to US$11.8 million for the year ended June
30, 2025, representing a significant increase of US$6.2 million, which was generally in line with the growth in the sales of NEVs and
components.

Our cost of revenues related
to provision of vehicle modification services were US$35,052 and nil for the years ended June 30, 2025 and 2024, respectively.

Our cost of revenues related
to leasing of NEVs were US$6,754 and nil for the years ended June 30, 2025 and 2024, respectively.

Our other cost of revenues
were US$16,952 and nil for the years ended June 30, 2025 and 2024, respectively.

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

As a result of the foregoing, we recorded gross loss of US$0.7 million
and gross profit of US$0.5 million for the years ended June 30, 2025 and 2024, respectively, representing gross loss margin of 6.4% and
gross profit margin of 8.8% for the same years, respectively. The gross loss for the year ended June 30, 2025 was primarily due to (1)
lower profit margin in the sales of NEV components, which accounted for the majority of sales during the year of 2025; and (2) the dismantling
and low-price sale of 6 Dragon Kingvehicles as a result of the decline in market demand for the relevant models.

Operating expenses

Our operating