Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 22

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 22
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 taxable income is no more than RMB1 million (US$136,999) is subject to the
preferential income tax rate of 5% (only 25%% of such taxable income shall be subject to enterprises income tax at a tax rate of 20%).

According to [2023] No.12,
announcement of the Ministry of Finance and the State Taxation Administration, which became effective on August 2, 2023 and until to December
31, 2027, small, low profit enterprises is subject to the preferential income tax rate of 5% (only 25% of such taxable income shall be
subject to enterprises income tax at a tax rate of 20%).

For the six months ended
December 31, 2024 and 2023, some PRC subsidiaries are qualified small, low profit enterprises as defined, and thus are eligible for the
above preferential tax rates for small, low profit enterprises.

According to [2021] No.13,
announcement of the Ministry of Finance and the State Taxation Administration, which became effective from January 1, 2021, an enterprise
engaged in manufacturing business and whose main operating revenue accounts for more than 50% of the total revenue, is entitled to claim
an additional tax deduction amounting to 100% of the qualified R& D expenses incurred in determining its tax assessable profits for
that year. The same tax incentives policy further applies to all enterprises according to [2022] No.16, announcement of the Ministry of
Finance, the State Taxation Administration and Ministry of Science and Technology, and [2023] No.7, announcement of the Ministry of Finance
and the State Taxation Administration, which became effective from January 1, 2022 and 2023, respectively.

According to [2023] No.7,
announcement of the Ministry of Finance and the State Taxation Administration, effective from January 1, 2023 onwards, enterprises engaging
in research and development activities are entitled to claim an additional tax deduction amounting to 100% of the qualified R& D expenses
incurred in determining its tax assessable profits for that year.

Comparison of Six Months ended December 31,
2024 and 2023

Revenues

Our revenues increased significantly
from US$3.2 million for the six months ended December 31, 2023 to US$7.1 million for the six months ended December 31, 2024.

Revenues