Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 101

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 101
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 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 industry 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 launched
three NEVs, including Dragon King, Galaxy IIandQ-truck, and we have also acquired some NEV and components
customization orders. We have also launched two additional tractor models. We plan to continuously introduce new models to expand our
product portfolio and customer base. We expect our revenue growth to be driven in part by the continued expansion of our vehicle portfolio.

Our ability to control
costs and expenses and enhance operational efficiency

Our results of operations
have been, and will continue to be, affected by our ability to control costs and expenses and enhance our operational efficiency. We
cooperate seamlessly with suppliers who have been in the industry for more than 10 years and have our bargaining power over the
pricing. Cost-effectiveness is the key to our operational management and profitability. Research and development expenses have historically
represented a large portion of our total costs and expenses, consisting primarily of service fees paid to third-party professional technology
developers. General and administrative expenses and selling and marketing expenses are important components of our costs. As our business
grows, we aim to further improve our operational efficiency by developing technologies and infrastructure across different business functions.
We expect to achieve greater operating leverage and increase the productivity of our personnel, allowing us to acquire customers and
suppliers more cost-effectively and achieve higher operational efficiency.

Results of Operations

The following tables set
forth a summary of our consolidated results of operations, in absolute amount and as a