Cenntro Inc. (NASDAQ:CENN) ("Cenntro" or "the Company"), a pioneering innovator in electric commercial vehicles, with advanced, market-validated, and purpose-built vehicle and smart technology products, has reported its financial and operational results for the three months ended March 31, 2025.
First Quarter 2025 Financial and Operational Highlights:
- First quarter 2025 net revenue of $2.1 million decreased 8.5% compared to $2.3 million for the first quarter 2024.
- Adjusted EBITDA loss for the first quarter of 2025 of ($4.0) million compared to a loss of ($6.4) million for the first quarter of 2024.
- Sold 129 Electric Commercial Vehicles in the first quarter of 2025, an increase of 34% over the prior year period.
- Sold 31 Avantier™ vehicles in Europe and South American markets in the first quarter of 2025 compared to 12 vehicles in the first quarter of 2024.
- Sold 27 iChassis units in the first quarter of 2025 compared to 227 units in the first quarter of 2024.
Peter Wang, Chief Executive Officer, commented: "The first quarter of 2025 was underscored by continued international vehicle sales momentum across our product line. During the quarter we sold a total of 129 Electric Commercial Vehicles, compared to 96 vehicles in the prior year period, a 34% improvement. In the first quarter of 2025, our facility in Ontario, CA, assembled and delivered 14 vehicles to customers on the North American west coast.
"For the iChassis, we sold 27 units in the first quarter of 2025, although these units are not inclusive of the number of vehicles sold because iChassis is not considered a complete vehicle. The iChassis 100 is a smart chassis platform designed and manufactured by Cenntro, serving as a foundational component for autonomous commercial vehicles. At present, we exclusively manufacture autonomous commercial vehicles for third-party contractors in China, and in the 2024 calendar year we delivered more than 900 autonomous driving delivery vehicles incorporating the iChassis 100 in China. With strong demand for the iChassis platform and autonomous vehicle manufacturing capabilities, we are expanding our footprint in China and abroad.
"Several significant orders delivered in the first quarter continued to demonstrate global demand for our purpose-built electric vehicles. In Spain, we received an order for 200 special edition Logistar® 450P electric passenger vans from vehicle provider QEV Technologies, with 34 delivered in the first calendar quarter of 2025, 13 confirmed to deliver in the second calendar quarter of 2025. The LS450P model is a special edition jointly developed by QEV and Cenntro and holding European Union M2 Type Approval. In Japan, we secured an order for 500 customized Metro MR vehicles exclusively for the Japanese market. We believe we are well positioned to capitalize on additional opportunities in this key market, as the Metro MR is uniquely tailored to the requirements of the Japanese market.
"Looking ahead, we are leveraging our innovative capabilities to drive long-term shareholder value through portfolio diversification and the development of new vehicle models that align with market demands. We are focused on expanding our geographic footprint for production, distribution, and service infrastructure, especially in the US market. We expect a significant increase in revenue in the US market as we ramp-up our Ontario facility and introduce additional new models. Globally, we are increasing vehicle delivery efficiency and penetrating new markets where our vehicles are uniquely suited, laying the foundation for new orders and additional market share. As we continue our mission to revolutionize urban mobility through innovative, sustainable electric vehicles, we look forward to providing additional updates and milestones in the months ahead," concluded Mr. Wang.
First Quarter 2025 Financial Results
Net Revenue
Net revenues for the three months ended March 31, 2025, were approximately $2.1 million, a decrease of approximately $0.2 million or 8.5% from approximately $2.3 million for the three months ended March 31, 2024. The decrease was primarily due to a decrease in spare-part sales, offset by an increase in vehicle sales and other sales.
Gross Profit
Gross profit for the three months ended March 31, 2025. was approximately $0.3 million, an increase of approximately $0.1 million from approximately $0.2 million for the three months ended March 31, 2024. The increase in gross profit was caused by an increase in the gross profit of spare-part sales and other sales of approximately $0.1 million and $0.1 million, respectively, offset by a decrease in the gross profit of vehicle sales of approximately $0.09 million.
Operating Expenses
Total operating expenses were approximately $6.5 million for the three months ended March 31, 2025, compared with $8.0 million in the three months ended March 31, 2024.
Selling and marketing expenses for the three months ended March 31, 2025 were approximately $0.8 million, an increase of approximately $0.2 million or approximately 25.7% from approximately $0.6 million for the three months ended March 31, 2024. The increase in selling and marketing expenses in 2025 was primarily attributed to the increase in freight of approximately $0.4 million, offset by the decrease in salary and social insurance, marketing expense and service fees related to European market and distribution channel research of approximately $0.08 million, $0.05 million and $0.07 million, respectively.
General and administrative expenses for the three months ended March 31, 2025 were approximately $4.9 million, a decrease of approximately $1.0 million or approximately 16.6% from approximately $5.9 million for the three months ended March 31, 2024. The decrease in general and administrative expenses in 2025 was primarily attributed to the decrease in legal and professional fee, salary and social insurance, ROU amortization, office expenses, ROU interest expense and share-based compensation of approximately $0.2 million, $0.1 million, $0.2 million, $0.2 million, $0.1 million and $0.1 million, respectively.
Research and development expenses for the three months ended March 31, 2025 were approximately $0.8 million, a decrease of approximately $0.7 million or approximately 48.1% from approximately $1.5 million for the three months ended March 31, 2024. The decrease in research and development expenses in 2025 was primarily attributed to the decrease in design and development expenses, salary expense and others of approximately $0.2 million, $0.4 million and $0.1 million, respectively.
Net Loss
Net loss from continuing operations was approximately $5.4 million in the three months ended March 31, 2025, compared with net loss of $7.8 million in the three months ended March 31, 2024.
Balance Sheet
Cash and cash equivalents were approximately $8.5 million as of March 31, 2025, compared with $12.5 million as of December 31, 2024.
Adjusted EBITDA
Adjusted EBITDA from continuing operations was approximately ($4.0) million in the three months ended March 31, 2025, compared with Adjusted EBITDA of $(6.4) million in the three months ended March 31, 2024.
We define Adjusted EBITDA as net income (or net loss) before net interest expense, income tax expense, depreciation and amortization as further adjusted to exclude the impact of stock-based compensation expense and other non-recurring expenses including expenses related to TME Acquisition, expenses related to one-off payment inherited from the original Naked Brand Group, impairment of goodwill, convertible bond issuance fee, loss on redemption of convertible promissory notes, loss on exercise of warrants, and change in fair value of convertible promissory notes and derivative liability. We present Adjusted EBITDA because we consider it to be an important supplemental measure of our performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management believes that investors' understanding of our performance is enhanced by including this non-GAAP financial measure as a reasonable basis for comparing our ongoing results of operations.
US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
|
|
Three Months Ended March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
(Expressed in U.S. Dollars) |
|
(Unaudited) |
|
|||||
Net loss |
|
$ |
(5,362,267 |
) |
|
$ |
(7,755,896 |
) |
Interest (income)/ expense, net |
|
|
118,688 |
|
|
|
(73,242 |
) |
Income tax benefit |
|
|
(11,632 |
) |
|
|
(11,990 |
) |
Depreciation and amortization |
|
|
550,278 |
|
|
|
490,540 |
|
Share-based compensation expense |
|
|
739,651 |
|
|
|
906,327 |
|
Change in fair value of convertible promissory notes and derivative liability |
|
|
3,129 |
|
|
|
705 |
|
Adjusted EBITDA from continuing operations |
|
$ |
(3,962,153 |
) |
|
$ |
(6,443,556 |
) |
Represents a non-GAAP financial measure.
About Cenntro
Cenntro (NASDAQ:CENN) is a pioneering maker and provider of electric commercial vehicles ("ECVs"). Cenntro's purpose-built ECVs are designed to serve a variety of commercial applications inclusive of its line of class 1 to class 4 trucks. Cenntro is building a globalized supply-chain, as well as the manufacturing, distribution, and service capabilities for its innovative and reliable products. Cenntro continues to evolve its products capabilities through advanced battery, powertrain, and smart driving technologies. For more information, please visit Cenntro's website at: www.cenntroauto.com.
Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. Such statements may be, but need not be, identified by words such as "may," "believe," "anticipate," "could," "should," "intend," "plan," "will," "aim(s)," "can," "would," "expect(s)," "estimate(s)," "project(s)," "forecast(s)," "positioned," "approximately," "potential," "goal," "strategy," "outlook" and similar expressions. Examples of forward-looking statements include, among other things, statements regarding assembly and distribution capabilities, decentralized production, and fully digitalized autonomous driving solutions. All such forward-looking statements are based on management's current beliefs, expectations and assumptions, and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed or implied in this communication. For additional risks and uncertainties that could impact Cenntro's forward-looking statements, please see disclosures contained in Cenntro's public filings with the SEC, including the "Risk Factors" in Cenntro's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 1, 2025 and which may be viewed at www.sec.gov.
CENNTRO INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in U.S. dollars, except for the number of shares)
|
|
|
|
|
March 31,
|
|
|
December 31,
|
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||
|
|
|
|
|
(Unaudited) |
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
|
$ |
8,536,714 |
|
|
$ |
12,547,168 |
|
Restricted cash, current |
|
|
|
|
|
197,674 |
|
|
|
273,291 |
|
Short-term investment |
|
|
|
|
|
- |
|
|
|
5,505 |
|
Accounts receivable, net |
|
|
|
|
|
3,096,130 |
|
|
|
3,281,865 |
|
Inventories |
|
|
|
|
|
25,276,095 |
|
|
|
24,012,504 |
|
Prepayment and other current assets |
|
|
|
|
|
18,098,574 |
|
|
|
18,075,415 |
|
Amounts due from related parties - current |
|
|
|
|
|
11,798 |
|
|
|
11,729 |
|
Assets held for sale, current |
|
|
|
|
|
7,723,541 |
|
|
|
7,708,969 |
|
Total current assets |
|
|
|
|
|
62,940,526 |
|
|
|
65,916,446 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
|
Long-term time deposit |
|
|
|
|
|
700,000 |
|
|
|
700,000 |
|
Long-term investments |
|
|
|
|
|
3,730,271 |
|
|
|
3,710,663 |
|
Investment in equity security |
|
|
|
|
|
26,861,031 |
|
|
|
26,604,319 |
|
Property, plant and equipment, net |
|
|
|
|
|
17,593,328 |
|
|
|
17,401,006 |
|
Intangible assets, net |
|
|
|
|
|
6,196,476 |
|
|
|
6,225,302 |
|
Right-of-use assets |
|
|
|
|
|
9,332,719 |
|
|
|
9,948,831 |
|
Other non-current assets, net |
|
|
|
|
|
1,987,621 |
|
|
|
2,059,747 |
|
Total non-current assets |
|
|
|
|
|
66,401,446 |
|
|
|
66,649,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
$ |
129,341,972 |
|
|
$ |
132,566,314 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
$ |
4,812,536 |
|
|
$ |
5,135,710 |
|
Short-term loans and current portion of long-term loans |
|
|
|
|
|
237,296 |
|
|
|
249,614 |
|
Accrued expenses and other current liabilities |
|
|
|
|
|
3,935,863 |
|
|
|
3,647,503 |
|
Contractual liabilities |
|
|
|
|
|
5,102,793 |
|
|
|
4,121,305 |
|
Operating lease liabilities, current |
|
|
|
|
|
3,578,744 |
|
|
|
3,426,067 |
|
Convertible promissory notes |
|
|
|
|
|
9,952,000 |
|
|
|
9,952,000 |
|
Deferred government grant, current |
|
|
|
|
|
100,647 |
|
|
|
100,060 |
|
Amounts due to related parties |
|
|
|
|
|
1,087,470 |
|
|
|
26,226 |
|
Liabilities held for sale, current |
|
|
|
|
|
2,200,535 |
|
|
|
2,455,539 |
|
Total current liabilities |
|
|
|
|
|
31,007,884 |
|
|
|
29,114,024 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Long-term loans |
|
|
|
|
|
339,307 |
|
|
|
362,386 |
|
Deferred tax liabilities |
|
|
|
|
|
166,865 |
|
|
|
171,558 |
|
Deferred government grant, non-current |
|
|
|
|
|
1,760,797 |
|
|
|
1,776,957 |
|
Derivative liability - investor warrant |
|
|
|
|
|
12,139,517 |
|
|
|
12,137,087 |
|
Derivative liability - placement agent warrant |
|
|
|
|
|
3,456,528 |
|
|
|
3,455,829 |
|
Operating lease liabilities, non-current |
|
|
|
|
|
7,038,916 |
|
|
|
7,588,971 |
|
Total non-current liabilities |
|
|
|
|
|
24,901,930 |
|
|
|
25,492,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
|
$ |
55,909,814 |
|
|
$ |
54,606,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Common stock (No par value; 30,866,614 shares issued and outstanding as of March 31, 2025 and December 31, 2024) |
|
|
|
|
|
- |
|
|
|
- |
|
Additional paid in capital |
|
|
|
|
|
406,496,754 |
|
|
|
405,757,103 |
|
Accumulated deficit |
|
|
|
|
|
(324,544,650 |
) |
|
|
(318,890,314 |
) |
Accumulated other comprehensive loss |
|
|
|
(8,631,181 |
) |
|
|
(9,029,499 |
) |
||
Total equity attributable to shareholders |
|
|
|
|
|
73,320,923 |
|
|
|
77,837,290 |
|
Non-controlling interests |
|
|
|
111,235 |
|
|
|
122,212 |
|
||
Total Equity |
|
|
|
|
$ |
73,432,158 |
|
|
$ |
77,959,502 |
|
Total Liabilities and Equity |
|
|
$ |
129,341,972 |
|
|
$ |
132,566,314 |
|
||
CENNTRO INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Expressed in U.S. dollars, except for number of shares)
|
|
|
|
|
For the Three Months Ended March 31, |
|
||||||
|
|
|
|
|
2025 |
|
|
2024 |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Net revenues |
|
|
|
|
|
$ |
2,143,058 |
|
|
$ |
2,342,918 |
|
Cost of goods sold |
|
|
|
|
|
|
(1,821,531 |
) |
|
|
(2,173,711 |
) |
Gross profit |
|
|
|
|
|
|
321,527 |
|
|
|
169,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
|
|
|
|
|
(776,717 |
) |
|
|
(617,961 |
) |
General and administrative expenses |
|
|
|
|
|
|
(4,934,168 |
) |
|
|
(5,916,071 |
) |
Research and development expenses |
|
|
|
|
|
|
(784,178 |
) |
|
|
(1,509,921 |
) |
Total operating expenses |
|
|
|
|
|
|
(6,495,063 |
) |
|
|
(8,043,953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
|
|
|
|
(6,173,536 |
) |
|
|
(7,874,746 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest (expense) income, net |
|
|
|
|
|
|
(118,688 |
) |
|
|
73,242 |
|
Loss from long-term investments |
|
|
|
|
|
|
(39 |
) |
|
|
(13,870 |
) |
Change in fair value of convertible promissory notes and derivative liability |
|
|
|
|
|
|
(3,129 |
) |
|
|
(705 |
) |
Gain from early termination of lease contract |
|
|
|
|
|
|
1,138 |
|
|
|
- |
|
Change in fair value of equity securities |
|
|
|
|
|
|
256,712 |
|
|
|
234,887 |
|
Foreign currency exchange gain (loss), net |
|
|
|
|
|
|
404,191 |
|
|
|
(245,179 |
) |
(Loss) gain from cross-currency swaps |
|
|
|
|
|
|
(36,140 |
) |
|
|
5,933 |
|
Other income, net |
|
|
|
|
|
|
295,592 |
|
|
|
52,552 |
|
Net loss from continuing operations before taxes |
|
|
|
|
|
|
(5,373,899 |
) |
|
|
(7,767,886 |
) |
Income tax benefit |
|
|
|
|
|
|
11,632 |
|
|
|
11,990 |
|
Net loss from continuing operations |
|
|
|
|
|
|
(5,362,267 |
) |
|
|
(7,755,896 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of tax |
|
|
|
|
|
|
(303,390 |
) |
|
|
(1,474,327 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
|
|
|
|
(5,665,657 |
) |
|
|
(9,230,223 |
) |
Less: net loss attributable to non-controlling interests |
|
|
|
|
|
|
(11,321 |
) |
|
|
(72 |
) |
Net loss attributable to the Company's shareholders |
|
|
|
|
|
$ |
(5,654,336 |
) |
|
$ |
(9,230,151 |
) |
OTHER COMPREHENSIVE INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment |
|
|
|
|
|
|
391,162 |
|
|
|
(1,001,245 |
) |
Unrealized holding gains for available-for-sale securities |
|
|
|
|
|
|
7,500 |
|
|
- |
|
|
Total comprehensive loss |
|
|
|
|
|
|
(5,266,995 |
) |
|
|
(10,231,468 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: total comprehensive loss attributable to non-controlling interests |
|
|
|
|
|
|
(10,977 |
) |
|
|
(144 |
) |
Total comprehensive loss to the Company's shareholders |
|
|
|
|
|
$ |
(5,256,018 |
) |
|
$ |
(10,231,324 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding, basic and diluted |
|
|
|
|
|
|
30,866,614 |
|
|
|
30,828,794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations - basic and diluted |
|
|
|
|
|
|
(0.17 |
) |
|
|
(0.25 |
) |
Discontinued operations - basic and diluted |
|
|
|
|
|
|
(0.01 |
) |
|
|
(0.05 |
) |
Net loss per common share - basic and diluted |
|
|
|
|
|
|
(0.18 |
) |
|
|
(0.30 |
) |
CENNTRO INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
For the Three Months Ended March 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
(Unaudited) |
|
|
(Unaudited) |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net cash used in operating activities |
|
$ |
(4,954,514 |
) |
|
$ |
(8,864,876 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(519,893 |
) |
|
|
(327,589 |
) |
Cash dividend from long-term investment |
|
|
- |
|
|
|
55,645 |
|
Proceeds from disposal of property, plant and equipment |
|
|
20,3332 |
|
|
|
5,264 |
|
Proceeds from interest and redemption of equity securities |
|
|
- |
|
|
|
573,441 |
|
Net cash (used in) provided by investing activities |
|
|
(499,561 |
) |
|
|
306,761 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from bank loans |
|
|
148,330 |
|
|
|
- |
|
Repayments to bank loans |
|
|
(183,727 |
) |
|
|
- |
|
Loans proceed from third parties |
|
|
561,886 |
|
|
|
- |
|
Repayment of loans to third parties |
|
|
(360,000 |
) |
|
|
- |
|
Loans proceed from related parties |
|
|
1,000,000 |
|
|
|
- |
|
Net cash provided by financing activities |
|
|
1,166,489 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
65,434 |
|
|
|
(429,029 |
) |
|
|
|
|
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
(4,221,152 |
) |
|
|
(8,987,144 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
12,960,488 |
|
|
|
29,571,897 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
8,738,336 |
|
|
$ |
20,584,753 |
|
|
|
|
|
|
|
|
|
|
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
8,536,714 |
|
|
|
20,154,305 |
|
Restricted cash |
|
|
197,674 |
|
|
|
329,185 |
|
Cash, cash equivalents and restricted cash at end of period, held for sale |
|
|
3,948 |
|
|
|
101,263 |
|
Total cash, cash equivalents and restricted cash shown in the statement of cashflow |
|
|
8,738,336 |
|
|
|
20,584,753 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
14,138 |
|
|
$ |
130,500 |
|
Income tax paid |
|
$ |
- |
|
|
$ |
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250516353900/en/
Investor Relations Contact:
Chris Tyson
MZ North America
[email protected]
949-491-8235
Company Contact:
[email protected]
[email protected]