Cenntro Announces Full Year 2024 Financial Results

FREEHOLD, N.J.--(BUSINESS WIRE)-- 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 year ended December 31, 2024.

Full Year 2024 Financial and Operational Highlights:

• Year 2024 net revenue of $31.3 million increased 200.2% compared to $10.4 million for the year of 2023.
• United States (“US”) sales volume increased to $19.3 million in the year of 2024 from $0.4 million for the year of 2023.
• Adjusted EBITDA loss for the year of 2024 of $28.2 million compared to a loss of $39.3 million for the year of 2023.
• Sold 1,122 Electric Commercial Vehicles in the year of 2024.
• Sold 145 Logistar™ 400 Class 4 vehicles in the US market compared to 1 vehicle in the year of 2023.
• Sold 492 Avantier™ vehicles in Europe and South American markets in the year of 2024 compared to 97 vehicles in the year of 2023.
• Sold 911 iChassis units in the year of 2024 compared to 303 units in the year of 2023.

Peter Wang, Chief Executive Officer, illustrated: “The year of 2024 and early 2025 were highlighted by ongoing international growth and new vehicle delivery. During the year we sold a total of 1,122 vehicles across our portfolio, compared to 630 vehicles in the prior year period. For the year ended December 31, 2024, our facility in Ontario, CA, has assembled and delivered over 192 vehicles to customers on the North American west coast. We expect a significant revenue increase in the US market as we continue to shift our strategy to focus on North American sales, and introduction of additional new models in the US market. Additionally, we sold 911 units of our iChassis in year 2024, although these units are not inclusive of the number of vehicles sold because iChassis is not considered a complete vehicle.

“For the iChassis, we delivered more than 900 autonomous driving delivery vehicles incorporating the iChassis 100 in the 2024 calendar year to third-party contractors in China. Following its initial production phase in 2023, we experienced strong demand for the iChassis platform and autonomous vehicle manufacturing capabilities, both in China and abroad. This achievement underscores the growing demand for our advanced, market-validated, and purpose-built autonomous vehicle platforms.

“Milestone international orders in early 2025 continued to demonstrate demand for our purpose-built electric vehicles. Recently we received an order for 200 special edition Logistar® 450P electric passenger vans from Spanish vehicle provider QEV Technologies, with 47 scheduled for delivery in the first 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, with delivery scheduled for the first calendar quarter of 2025. We believe the Metro MR is uniquely tailored to the requirements of the Japanese market, reflecting a strategic move to penetrate and grow in a region renowned for its exacting expectations.

“For new models during the quarter, Avantier Motors Corporation, our wholly owned subsidiary, launched two new electric vehicle models tailored for the European market following the strong reception of the Avantier C; the Avantier Ex, a mini electric commercial vehicle, and the Avantier Commuter, an entry-level electric passenger car. Both models join Avantier’s existing product line as the company continues its mission to revolutionize urban mobility through innovative, sustainable electric vehicles.

“Looking ahead, we will continue to diversify our portfolio and develop new vehicle models that align with market demands, and keep pace with new regulations, technologies and features. We are focused on expanding our geographic footprint for production, distribution, and service infrastructure, especially in the US market. With the ramp-up of our Ontario facility, we are increasing vehicle delivery efficiency as we continue to expand sales in North America’s west coast market. We are penetrating new markets where our vehicles are uniquely suited, setting the stage for additional orders and expanded market share. Taken together, we remain focused on leveraging our innovative capabilities to drive long-term shareholder value,” concluded Mr. Wang.

Full Year 2024 Financial Results

Net Revenue

Net revenues for the year ended December 31, 2024 were approximately $31.3 million, an increase of approximately $20.9 million or 200.2% from approximately $10.4 million for the year ended December 31, 2023. The increase was primarily due to an increase in vehicle sales and spare parts sales.

Gross Profit

Gross profit for the year ended December 31, 2024 was approximately $7.6 million, an increase of approximately $6.0 million from approximately $1.6 million for the year ended December 31, 2023. For the years ended December 31, 2024 and 2023, our overall gross margin was approximately 24.3% and 15.5%, respectively. Our gross margin of vehicle sales for years ended December 31, 2024 and 2023 was 24.9% and 18.8%, respectively. The increase in our gross profit was caused by the increase in vehicle sales revenue of approximately $19.3 million, offset by the increase in cost of goods sold of approximately $8.4 million and inventory write down of approximately $5.6 million.

Operating Expenses

Total operating expenses were approximately $39.5 million for the year ended December 31, 2024, compared with $44.9 million in the year ended December 31, 2023.

Selling and marketing expenses for the year ended December 31, 2024 were approximately $7.4 million, an increase of approximately $3.2 million or approximately 76.4% from approximately $4.2 million for the year ended December 31, 2023. The increase in selling and marketing expenses in 2024 was primarily attributed to the increase in service fees related to global market and distribution channel research and marketing expense of approximately $0.7 million and $2.8 million, respectively, offset by a decrease in share-based compensation and salary and social insurance of approximately $0.1 million and $0.2 million, respectively.

General and administrative expenses for the year ended December 31, 2024 were approximately $26.3 million, a decrease of approximately $6.6 million or approximately 20.2% from approximately $33.0 million for the year ended December 31, 2023. The decrease in general and administrative expenses in 2024 was primarily attributed to (i) a decrease in share-based compensation of approximately $1.7 million, (ii) a decrease in legal and professional fee of approximately $3.4 million, (iii) a decrease in salary and social care expense of approximately $0.9 million, (iv) a decrease in office expense of approximately $1.1 million, (v) a decrease in rental expense of approximately $0.2 million, offset by the increase in ROU amortization, freight and leasehold improvement depreciation of approximately $0.2 million and $0.2 million, respectively.

Research and development expenses for the year ended December 31, 2024 were approximately $5.2 million, a decrease of approximately $2.6 million or approximately 33.2% from approximately $7.7 million for the year ended December 31, 2023. The decrease in research and development expenses in 2024 was primarily attributed to the decrease in design and development expenditures, share-based compensations and rental expense of approximately $2.7 million, $0.06 million and $0.04 million, offset by the increase in salary and social insurance of approximately $0.3 million.

Impairment loss of goodwill for the year ended December 31, 2024 were approximately $0.2 million compared nil for the year ended December 31, 2023.

Net Loss

Net loss from continuing operation was approximately $34.1 million in the year ended December 31, 2024, compared with net loss of $46.1 million in the year ended December 31, 2023.

Balance Sheet

Cash and cash equivalents were approximately $12.5 million as of December 31, 2024, compared with $28.8 million as of December 31, 2023.

Adjusted EBITDA

Adjusted EBITDA was approximately ($28.2) million in the year ended December 31, 2024, compared with Adjusted EBITDA of $(39.3) million in the year ended December 31, 2023.

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

		Year Ended December 31,
		2024				2023
Net loss from continuing operations		$	(34,112,925	)		$	(46,070,000	)
Interest expense, net			183,662				(402,415	)
Income tax expense			(35,524	)			8,988
Depreciation and amortization			2,010,863				1,670,979
Share-based compensation expense			3,370,634				5,230,273
Impairment of goodwill			209,130				—
Loss on redemption of convertible promissory notes			—				(12,507	)
Loss on exercise of warrants			(900	)			228,903
Change in fair value of convertible promissory notes and derivative liability			(7,194	)			(75,341	)
Loss from acquisition in relation to the revaluation of the previously held equity interest			149,872				136,302
Adjusted EBITDA from continuing operations		$	(28,232,382	)		$	(39,284,818	)

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, 2024 and which may be viewed at www.sec.gov.

CENNTRO INC. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars, except for the number of shares)
			December 31, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	12,547,168			$	28,792,055
Restricted cash, current			273,291				196,170
Short-term investment			5,505				4,236,588
Accounts receivable, net			3,281,865				2,499,244
Inventories			24,012,504				29,180,670
Prepayment and other current assets			18,075,415				19,317,804
Amounts due from related parties - current			11,729				287,439
Assets held for sale, current			7,708,969				20,417,469
Total current assets			65,916,446				104,927,439
Non-current assets:
Long-term time deposit			700,000				-
Long-term investments			3,710,663				4,596,552
Investment in equity securities			26,604,319				26,158,474
Property, plant and equipment, net			17,401,006				20,401,521
Goodwill			-				223,494
Intangible assets, net			6,225,302				6,872,011
Right-of-use assets			9,948,831				19,653,920
Other non-current assets, net			2,059,747				2,169,928
Assets held for sale, non-current			-				534,651
Total non-current assets			66,649,868				80,610,551
Total Assets		$	132,566,314			$	185,537,990
LIABILITIES AND EQUITY
LIABILITIES
Current liabilities:
Accounts payable		$	5,135,710			$	4,881,573
Short-term loans and current portion of long-term loans			249,614				-
Accrued expenses and other current liabilities			3,647,503				3,303,285
Contractual liabilities			4,121,305				2,448,501
Operating lease liabilities, current			3,426,067				4,194,136
Convertible promissory notes			9,952,000				9,956,000
Contingent liabilities			-				26,669
Deferred government grant, current			100,060				108,717
Amounts due to related parties			26,226				10,468
Liabilities held for sale, current			2,455,539				4,369,887
Total current liabilities			29,114,024				29,299,236
Non-current liabilities:
Long-term loans			362,386				-
Contingent liabilities non-current			-				230,063
Deferred tax liabilities			171,558				228,086
Deferred government grant, non-current			1,776,957				1,929,733
Derivative liability - investor warrant			12,137,087				12,189,508
Derivative liability - placement agent warrant			3,455,829				3,456,578
Operating lease liabilities, non-current			7,588,971				16,339,619
Total non-current liabilities			25,492,788				34,373,587
Total Liabilities		$	54,606,812			$	63,672,823
Commitments and contingencies
EQUITY
Common stock (No par value; 30,866,614 and 30,828,778 shares issued and outstanding as of December 31, 2024 and 2023, respectively)			-				-
Additional paid in capital			405,757,103				402,337,393
Accumulated deficit			(318,890,314	)			(274,023,501	)
Accumulated other comprehensive loss			(9,029,499	)			(6,444,485	)
Total equity attributable to shareholders			77,837,290				121,869,407
Non-controlling interests			122,212				(4,240	)
Total Equity		$	77,959,502			$	121,865,167
Total Liabilities and Equity		$	132,566,314			$	185,537,990

CENNTRO INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Expressed in U.S. dollars, except for number of shares)
		For the Years Ended December 31,
		2024				2023
Net revenues		$	31,297,393			$	10,425,659
Cost of goods sold			(23,688,846	)			(8,808,257	)
Gross profit			7,608,547				1,617,402
OPERATING EXPENSES:
Selling and marketing expenses			(7,364,678	)			(4,175,784	)
General and administrative expenses			(26,321,333	)			(32,964,644	)
Research and development expenses			(5,160,803	)			(7,721,459	)
Provision for credit losses			(393,873	)			-
Impairment of goodwill			(209,130	)			-
Total operating expenses			(39,449,817	)			(44,861,887	)
Loss from operations			(31,841,270	)			(43,244,485	)
OTHER EXPENSE:
Interest (expense) income, net			(183,662	)			402,414
Gain on redemption of convertible promissory notes			-				12,507
(Loss) gain from long-term investments			(299,772	)			70,759
Change in fair value of convertible promissory notes and derivative liability			7,194				75,341
Change in fair value of equity securities			1,019,285				(2,600,721	)
Foreign currency exchange gain (loss), net			44,481				(941,995	)
Loss from acquisition in relation to the revaluation of the previously held equity interest			(149,872	)			(136,302	)
Loss from early termination of lease contract			(2,218,120	)			-
Gain (loss) on exercise of warrants			900				(228,903	)
(Loss) gain from cross-currency swaps			(9,463	)			8,664
Other (expense) income, net			(518,150	)			521,709
Net loss from continuing operations before taxes			(34,148,449	)			(46,061,012	)
Income tax benefit (expense)			35,524				(8,988	)
Net loss from continuing operations			(34,112,925	)			(46,070,000	)
Discontinued operations:
Loss from discontinued operations, net of tax			(10,795,692	)			(8,290,755	)
Net loss			(44,908,617	)			(54,360,755	)
Less: net loss attributable to non-controlling interests			(41,804	)			(161,430	)
Net loss attributable to the Company’s shareholders		$	(44,866,813	)		$	(54,199,325	)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustment			(2,627,692	)			(1,162,080	)
Unrealized holding gains and losses for available-for-sale securities			41,712				-
Total comprehensive loss			(47,494,597	)			(55,522,835	)
Less: total comprehensive loss attributable to non-controlling interests			(42,770	)			(185,997	)
Total comprehensive loss to the Company’s shareholders		$	(47,451,827	)		$	(55,336,838	)
Weighted average number of shares outstanding, basic and diluted*			30,841,396				30,424,686
Loss per common share
Continuing operations - Basic and Diluted			(1.08	)			(1.51	)
Discontinued operations - Basic and Diluted			(0.37	)			(0.27	)
Net loss per common share - basic and diluted			(1.45	)			(1.78	)

CENNTRO INC. CONSOLIDATED STATEMENTS OF CASH FLOW (Expressed in U.S. dollars, except for number of shares)
		For the Years Ended December 31,
		2024				2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(44,908,617	)		$	(54,360,755	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization			2,010,863				1,670,980
Amortization of operating lease right-of-use asset			4,638,315				4,495,244
Impairment of property, plant and equipment			-				431,319
Written-down of inventories			6,462,514				658,622
Provision for credit losses			393,873				-
Impairment of goodwill			209,130				-
Gain on redemption of convertible promissory notes			-				(12,507	)
(Gain) loss on exercise of warrants			(900	)			228,903
Changes in fair value of convertible promissory notes and derivative liabilities			(7,194	)			(75,341	)
Changes in fair value of equity securities			(1,019,285	)			2,600,721
Foreign currency exchange loss, net			1,118,313				1,527,077
Share-based compensation expense			3,370,634				5,230,273
Loss from disposal of plant and equipment			248,472				55,391
Loss from early termination of lease contract			2,218,120				-
Loss from long-term investments			293,658				1,377,760
Income from short-term investment			(89,992	)			(22,918	)
Loss from acquisition in relation to the revaluation of the previously held equity interest			149,872				136,302
Deferred income taxes			(47,851	)			(15,931	)
Changes in operating assets and liabilities:
Accounts receivable			1,258,199				(5,871,181	)
Inventories			7,927,826				(12,178,463	)
Prepayment and other assets			(195,403	)			(4,624,168	)
Amounts due from/to related parties			289,221				11,799
Accounts payable			1,027				3,100,835
Accrued expense and other current liabilities			(1,707,980	)			(1,325,504	)
Contractual liabilities			491,082				2,516,789
Operating lease liabilities			(4,466,209	)			(4,012,410	)
Net cash used in operating activities			(21,362,312	)			(58,457,163	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equity investment			-				(880,932	)
Purchase of convertible note from Acton			-				(600,000	)
Purchase of short-term investment			(4,169,142	)			(4,236,740	)
Purchase of long-term time deposit			(700,000	)			-
Proceeds from maturities of short-term investment			8,433,719				-
Purchase of land, plant and equipment			(846,115	)			(7,636,020	)
Purchase of land use rights and property			-				(1,114,943	)
Acquisition of CAE’s equity interests			-				(1,924,557	)
Acquisition of Antric Gmbh’s equity interests			-				(1	)
Cash acquired from acquisition of Antric Gmbh			-				1,376
Net of cash acquired of 60% of Hezhe’s equity interests			(355,400	)			-
Cash dividend received from equity method investments			55,573				-
Proceeds from disposal of property, plant and equipment			79,475				3,661
Redemption and cash dividend received from the equity securities investment			1,573,441				-
Net cash provided by (used in) investing activities			4,071,551				(16,388,156	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from bank loans			662,836				-
Repayments of bank loans			(50,836	)			(601,476	)
Loans proceed from third parties			708,832				-
Repayment of loans from third parties			(90,000	)			-
Redemption of convertible promissory notes			-				(47,534,119	)
Net cash provided by (used in) financing activities			1,230,832				(48,135,595	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash			(551,480	)			(1,543,990	)
Net decrease in cash, cash equivalents and restricted cash			(16,611,409	)			(124,524,904	)
Cash, cash equivalents and restricted cash at beginning of year			29,571,897				154,096,801
Cash, cash equivalents and restricted cash at end of year		$	12,960,488			$	29,571,897
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents			12,547,168				28,792,055
Restricted cash			273,291				196,170
Cash, cash equivalents and restricted cash at end of year, included in the assets held for sale			140,029				583,672
Total cash, cash equivalents and restricted cash shown in the statement of cashflow			12,960,488				29,571,897
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid		$	577,442			$	1,468,397
Income tax paid		$	-			$	4,797
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Cashless exercise of warrants		$	49,076			$	2,168,185
Non-cash capital injection to Robostreet by i-Chassis		$	-			$	250,000
Convention from debt to equity interest of HW Electro Co., Ltd.		$	-			$	1,000,000
Non-cash recognition of new leases		$	-			$	14,947,878

 

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Investor Relations Contact:

Chris Tyson

MZ North America

CENN@mzgroup.us

949-491-8235

Company Contact:

PR@cenntroauto.com

IR@cenntroauto.com

Source: Cenntro Inc.