Company: SCAG
Filing Date: 2025-07-03
Form Type: 20-F
Source: 0001213900-25-061408
Chunk: 42

Company: Scage Future
Filing Date: 2025-07-03
Form: 20-F
Item: Item 1
Chunk 42
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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 six
months ended December 31, 2024, and the fiscal years ended June 30, 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 and the provision of related
services in other markets other than PRC, which are denominated in foreign currencies, contribute to a greater share of our revenue.

Recently Adopted or Issued Accounting Pronouncements

Our management does not believe
that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying
financial statements. See Note 2(z) to our consolidated financial statements as of and for the fiscal years ended June 30, 2024 and 2023,
and Note 2(o) to our unaudited condensed consolidated financial statements for the six months ended December 31, 2024, included elsewhere
in this proxy statement/prospectus.

ITEM 6. DIRECTORS, SENIOR
MANAGEMENT AND EMPLOYEES

A. Directors and Executive
Officers

The following table sets
forth information regarding our directors and executive officers as of the date of this Report. The business address our directors and
executive officers is 2F, Building 6, No. 6 Fengxin Road, Yuhuatai District, Nanjing City, Jiangsu Province, 210012, China.

  Name               Age      Position