Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 71

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 5
Chunk 71
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 the same time last year.
 
14

 

Our cost of revenues related to provision of vehicle modification services were US$25,763 and nil for the six months ended December 31, 2024 and 2023, respectively.
 
Our cost of revenues related to leasing of NEVs were US$2,947 and nil for the six months ended December 31, 2024 and 2023, 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$0.6 million for the six months ended December 31, 2024 and 2023, respectively, representing gross loss margin of 10.1% and gross profit margin of 19.6% for the same periods, respectively.
 
As mentioned in the analysis of cost of revenues, we achieved gross profit for the six months ended December 31, 2023, primarily due to (1) increase of sales and (2) better cost control on the production of Q-trucks, partially offset by the increase in the provision for inventory reserves. We turned to gross loss for the six months ended December 31, 2024, primarily due to (1) lower profit margin in the sales of NEV components, which took up the majority of sales during the second half of 2024, compared with the profit margin in the sales of NEVs; and (2) the increased reserves for estimated warranty costs for corresponding sales during the period.
 
Operating expenses
 
Our operating expenses decreased by 7.1% from US$3.4 million for the six months ended December 31, 2023 to US$3.2 million for the six months ended December 31, 2024, primarily due to the following reasons.
 
General and administrative expenses
 
Our general and administrative expenses increased by 2.6% from US$2.0 million for the six months ended December 31, 2023 to US$2.1 million for the six months ended December 31, 2024, primarily attributable to (1) an increase of approximately US$0.2 million in professional service fees, such as advisory fees and legal fees related to anticipated closing of Business Combination; and (2) an increase of approximately US$0.1 million in employee compensation, rental expenses and depreciation expense; partially offset by a decrease of US$0.2 million in bad debt