Cenntro Announces Full Year 2024 Financial Results
FREEHOLD, N.J.--(BUSINESS WIRE)--April 02, 2025--
Cenntro Inc. $(CENN)$ ("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 $39.3 million for the year of 2023.
-- Sold 1,122 Electric Commercial Vehicles in the year of 2024.
-- Sold 145 Logistar$(TM)$ 400 Class 4 vehicles in the US market compared to 1
vehicle in the year of 2023.
-- Sold 492 Avantier(TM) 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$(R)$ 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, December 31,
2024 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20250402265425/en/
CONTACT: Investor Relations Contact:
Chris Tyson
MZ North America
CENN@mzgroup.us
949-491-8235
Company Contact:
PR@cenntroauto.com
IR@cenntroauto.com
(END) Dow Jones Newswires
April 02, 2025 08:50 ET (12:50 GMT)
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