Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 91

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4
Chunk 91
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 to harness their resources to thoroughly test and validate product performance
and reliability.

Sales and Marketing

We adopt a customer-centric approach
in our go-to-market strategy to deliver trucks along with the infrastructure and service to support our customers. Across our product
portfolio, we conduct commissioned studies, market research and segmentation analysis. To ensure effective sales and marketing efforts,
we also gather insights from end users to better understand their needs and preferences. To increase brand awareness, we utilize various
methods, including traditional marketing channels, direct customer meetings, participation in industry events, and facility tours. We
also encourage our truck users to post their user experience on social media to promote word-of-mouth marketing of trucks that we
collaborated in developing. These activities help us connect with potential customers and showcase the value and capabilities of trucks
that we collaborated in developing.

We primarily sell our trucks
through our in-house sales and marketing team. The end users of trucks that we collaborated in developing can be categorized into
different sectors, including technology companies, mining companies, logistics service providers, container transportation companies,
and users of specialty vehicles, such as dump trucks. We partner with leading industrial enterprises to customize our commercial NEVs
and extend the use cases of our vehicles. We also actively develop relationships with small and medium-sized enterprise customers
in selected provinces to promote our vehicles in regional markets. In addition, we collaborate with technology companies to jointly develop
and commercialize vehicle technologies.

Upon receiving customer orders,
we initiate production and assembly through our contract manufacturers. Typically, our customers are required to pay an advance deposit
ranging from RMB100,000 to RMB200,000 per vehicle when placing purchase orders, and we require customer payment prior to vehicle delivery.
We generally do not extend credit for vehicle sales, except in cases of large quantity purchase orders from credit-worthy customers.

Pricing

We determine and adjust the
sales prices of our products from time to time in response to market dynamics and supply and demand factors. In determining our prices,
we take into account several key factors, including costs for collaborating production, the pricing of comparable products available
in the market, prevailing market conditions specific to our products, and the positioning of our products within the relevant market
segment.

Manufacturing, Supply Chain and Quality Control

Manufacturing

Our vehicle models are produced
through collaborative contract manufacturing with third-party vehicle manufacturers. Specifically, we collaborate with Xuzhou Construction
Machinery Group Co., Ltd. (“ XCMG”) for the production of Dragon King, and