Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 90

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4
Chunk 90
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 - Our Technologies - Electronic
steering system.”

Under the fleet transportation
model, our NEV trucks are equipped with automated intermodal networks. They operate in coordinated platoons, maintaining a close fleet
formation with minimal safety distance between adjacent vehicles to prevent other vehicles from mistakenly entering the convoy. Each
fleet is responsible for deliveries in a designated area. The lead truck uses vehicle-to-everything technology to transmit data,
informing all other vehicles in the fleet to follow its driving actions. These other vehicles automatically align, creating a synchronized
and efficient convoy.

This mode brings various
benefits to our customers. The following vehicles in the fleet are autonomous, saving on driver costs. In addition, by eliminating the
driver’s cabin and adopting a skateboard chassis, the following vehicles are equipped with increased cargo spaces, enhancing transportation
efficiency. Moreover, it reduces fuel consumption and operating costs by optimizing the fleet’s performance and minimizing unnecessary
movement. Furthermore, it significantly enhances road safety by reducing the risk of accidents due to the close coordination and communication
among the vehicles in the fleet.

Research and Development

We have a dedicated team of in-house research and development
personnel located in Beijing, Shanghai and Nanjing, covering the entire product development process from initial conception to final completion.
As of June 30, 2025, we had 39 full-time R& D staff, accounting for 39.4% of our total workforce. Our core technical team
consists of experts with extensive technical expertise in various areas, including vehicle body design, interior and exterior development,
chassis engineering, electrical engineering, embedded systems, and vehicle integration. The members of our R& D team have an average
industry experience of approximately 15 years in related fields, such as the research, design and development of both passenger cars
and commercial vehicles. Many of our team members have previously worked for renowned global automakers, such as Volkswagen, FAW and Chery.

We have implemented a robust
vehicle development process. This process encompasses comprehensive stages, including project initiation, design data freeze, engineering
prototype testing, small-batch process verification, and production approval, with each stage having clearly defined objectives
and deliverables.

Throughout the development
process, we conduct testing and validation on individual parts, systems, and the entire vehicle. Our facility is equipped with coordinate
measuring machines, durability test benches and various other measurement and testing tools. In addition, we have fostered strong collaborations
with vehicle manufacturers and testing institutions, enabling us