Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 208

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 19
Chunk 208
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 performance of the Group. As a whole and hence, the Group has only one reportable segment.

The
primary measure of segment revenue and profitability for the Group’s operating segment is considered to be consolidated revenue,
gross margin and pretax loss. Significant segment expenses reviewed by the CODM on a regular basis included within pretax loss include
cost of sales, selling and marketing expenses, general and administrative expenses, research and development expenses, and impairment
of long-lived assets, which are separately presented on the Group’s consolidated statements of operations and comprehensive loss.
Other segment items within pretax loss include financial expenses, net, other income or loss, net. The CODM uses these primary measurements
in the process of preparing annual budget and forecast for the segment, and conducting competitive analysis by benchmarking to the Group’s
competitors at the same development stage. Budget-to-actual variances in these measurements are considered when making decisions and
adjustments on the allocation of resources including personnel, property, and capital. The CODM also uses gross margin to evaluate product
pricing, and uses pretax loss to assess return on marketing activities and monitor overall spending in employee compensation, general
support and financing costs.

The
Group does not distinguish between markets or segments for internal reporting. As the Group’s long-lived assets are substantially
located in the PRC, no segment geographical information is presented. For operating results of segment provided to and reviewed by the
CODM, please refer to the consolidated statements of operations and comprehensive loss.

  (ab)      Fair value measurement  

Fair
value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The
hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of
the fair value hierarchy are described below:

  Level                                                                                

  Level                                                                                         

  Level                                                                                

Short-term
financial instruments of the Group primarily consist of cash, restricted cash, accounts receivable, amounts due from related parties,
other receivables included in prepaid expenses and other current assets, short-term borrowings, accounts payable, amounts due to related
parties, other payables included in accrued expenses and other payables. As of June 30, 2025 and 2024, the carrying amounts of these
financial instruments approximated to their fair values due to the