Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 92

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4
Chunk 92
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 with C& C Trucks Co., Ltd. (“ C& C”)
for the production of Galaxy II, Andromedaand ourQ-truckmodels. Our contract manufacturers
have superior production techniques and operate with first-class production lines for stamping, welding, painting, assembly and
testing. This contract manufacturing arrangement allows us to swiftly enter the market and scale our operations with minimal capital
investment at the early stage of our business. While the contract manufacturers manage the day-to-day operations of the plant,
we retain effective control over the supply chain, the manufacturing process, testing, and quality control.

We implement comprehensive
measures to ensure that our NEV trucks are manufactured in accordance with our standards. We have dedicated production management and
quality control teams on site to monitor the manufacturing process and perform quality control procedures at key process control checkpoints.

We have entered into a strategic
collaboration agreement with C& C, encompassing various areas, such as vehicle design, manufacture, sales, testing and after-sales services.
We typically enter into separate vehicle manufacturing orders with C& C, which would outline the vehicle model, production volume,
configuration, relevant quality standards and parameters. C& C generally assumes responsibility for the after-sales services
of the vehicles and is liable for quality issues arising from manufacturing and the associated costs. We collaborate with C& C in
the following areas pursuant to the strategic collaboration agreement:

  Vehicle design,                                                                                       

  Business development                                                                        

  Vehicle testing. C& C                                                                          
  shall support the testing and validation for vehicles jointly developed by C& C and us.        
  For our other vehicles, C& C may charge relevant service fees, if we request testing support.  
 ─────────────────────────────────────────────────────────────────────────────────────────────────

  Supply chain                                                                          

  After-sales services. For                                                                 

We have entered into purchase
agreements with XCMG for the manufacture of 50 vehicle models. We pay XCMG for manufacturing and technical service fees based on the
number of vehicles ordered. The agreement also prescribes the pre-agreed product quality standards for XCMG to comply with. We are
responsible for the after-sales services of the products, and XCMG assumes liability for any quality issues arising from manufacturing
and the associated costs.

C& C and XCMG each has
an annual production capacity of up to 30,000 units and 3,000 units, respectively, and both vehicle manufacturers have reserved
production capacity for the manufacture of our