Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 123

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 123
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 control costs, the successful implementation of initiatives designed to enhance sales and improve inventory management, gross
profit estimates, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products
and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel, working capital
requirements, and current and anticipated operating conditions. The use of different assumptions or estimates for future cash flows could
produce different results.

If the fair value is less
than the carrying amount of the long-lived assets, we would then determine that an impairment loss should be recognized, which is the
excess of carrying amount over the fair value of the long-lived assets, using the market approach to determine the fair value of the
long-lived assets.

Quantitative and Qualitative Disclosures about
Market Risk

Credit risk

Credit risk is controlled
by the application of credit approvals, limits and monitoring procedures. We manage credit risk through in-house research and analysis
of the worldwide economy and the underlying obligors and transaction structures. We consider many factors in assessing the collectability
of our receivables, such as the age of the amounts due, the customer’s payment history, credit-worthiness and other specific circumstances
related to the accounts.

Interest rate risk

We are exposed to interest
rate risk on our interest-bearing assets and liabilities. As part of our asset and liability risk management, we review and take appropriate
steps to manage our interest rate exposures on our interest-bearing assets and liabilities. We have not been exposed to material risks
due to changes in market interest rates, and not used any derivative financial instruments to manage the interest risk exposure for the
years ended June 30, 2025, 2024 and 2023.

Liquidity risk

We are exposed to liquidity
risk. We have managed this liquidity risk by arranging for long-term credit facilities with the banks, seeking financial support from
shareholders, or issuing convertible debts, to ensure that our outstanding loans and debts will be repaid and that we are able to roll
out our NEV business and expansion initiatives.

Foreign exchange risk

Our functional currency
is Renminbi and reporting currency is U. S. dollars. We are exposed to foreign exchange risk in respect of our operating activities,
including the import of some supplies and components used in the manufacture of our NEVs, including the chassis, powertrain, and electrical
and electronic parts. Our exposure to foreign exchange risk will increase when revenue from the sales of NEVs