Company: SCAG
Filing Date: 2025-11-12
Form Type: 20-F
Source: 0001213900-25-109190
Chunk: 78

Company: Scage Future
Filing Date: 2025-11-12
Form: 20-F
Item: Item 4
Chunk 78
---
 and technology innovation, leading to the successful development of various products and solutions.
We are confident that our management team will continue to lead us to innovate, excel and succeed in our industry.

Growth Strategies

Capitalize on increasing governmental support
and customer demand for zero-emission vehicles

Under China’s double
carbon policy, we have witnessed a surge in demand for low-carbon transportation from the mining industry. According to the F& S
Report, decarbonization has been incorporated into the industry standard for mining. Given the substantial cost involved in achieving
decarbonization, our long-endurance heavy-duty NEV truck stands out as one of the best solutions to address these demands,
according to the F& S Report. In addition to China, our products are also used in Europe, Southeast Asia, and the Middle East, among
other regions. Local demand for decarbonization and intelligent driving has emerged as a key growth driver for us. Going forward, we
plan to leverage increasing governmental and industry support for zero-emission vehicles and technologies to promote our NEV trucks.
Additionally, we will continue to innovate hybrid-powered models that are compatible with assisted, fleet and autonomous driving
technologies to meet evolving customer demands.

Further R& D investment and build production
capacity with a focus on high-growth vehicle models

We plan to focus our R& D
efforts on vehicle models and application scenarios with high market acceptance and growth potential. These include long-haul heavy
freight transport, less-than-truckload transport, cold chain transport, port operations, large-scale industrial logistics,
and specialty vehicles.

In order to reduce our operating
costs in the long term, we plan to establish a manufacturing facility with a capacity of 50,000 units by 2026. Unlike traditional
automakers who concentrate on conventional manufacturing techniques of stamping, welding, painting and assembly, we will steer our focus
on producing whole vehicles that we collaborated in developing and high-value key components. We anticipate that this production
capacity expansion plan will raise our profit margins by 8% to 15%, distinguishing us from our industry peers.

Enhance customer acquisition and accelerate
the commercialization of our vehicles

We intend to enhance customer
acquisition and accelerate the commercialization of our vehicles by deepening engagement with industry-leading corporate customers
and providing tailored services. We plan to routinely communicate with industry customers to stay informed of their evolving business
needs and develop vehicle models and features accordingly. Leveraging our hydrogen production capability, we also plan