Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 111

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4A
Chunk 111
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 30, 2024 compared with three Galaxy IImodels and 10 light passenger EVs for the year ended June 30,
2023.

Revenues from leasing of
NEVs were nil and US$16,290 for the years ended June 30, 2024 and 2023, respectively, as such lease term of NEVs expired in February 2023.

Cost of revenues

Our cost of revenues increased
significantly from US$0.80 million for the year ended June 30, 2023 to US$5.6 million for the year ended June 30,
2024.

Our cost of revenues related
to sales of NEVs and components increased significantly from US$0.8 million for the year ended June 30, 2023 to US$5.6 million
for the year ended June 30, 2024, which was generally in line with the growth in the sales of NEVs and components. For the year
ended June 30, 2024, we achieved better cost control on the production ofQ-trucksas we gained more bargaining power from
supply chain for bulk purchase orders.

Our cost of revenues related
to leasing of NEVs were nil and US$34,412 for the years ended June 30, 2024 and 2023, respectively.

Gross profit/(loss) and gross profit/(loss)
margin

As a result of the foregoing,
we recorded gross profit of US$0.5 million and gross loss of US$0.4 million for the years ended June 30, 2024 and 2023,
respectively, representing gross profit margin of 8.8% and gross loss margin of 81.6% for the same years, respectively.

As mentioned in the analysis
of cost of revenues, we achieved gross profit for the year ended June 30, 2024, mainly due to: (1) increase of sales and (2) better
cost control on the production ofQ-trucks, partially offset by the increase in the provision for inventory reserves. We expect
that our gross margin will improve as the scale of economy of our business increases in accordance with the increase in our vehicle and
component sales.

Operating expenses

Our operating expenses increased
by 0.8% from US$6.4 million for the year ended June 30, 2023 to US$6.4 million for the year ended June 30, 2024,
primarily