Cenntro Announces First Quarter 2025 Financial Results

Associated Press

16-05-2025

FREEHOLD, N.J.--(BUSINESS WIRE)--May 16, 2025--
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:
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
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.
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KEYWORD: UNITED STATES NORTH AMERICA NEW JERSEY
INDUSTRY KEYWORD: BATTERIES EV/ELECTRIC VEHICLES ALTERNATIVE VEHICLES/FUELS AUTOMOTIVE TECHNOLOGY AUTOMOTIVE MANUFACTURING GENERAL AUTOMOTIVE MANUFACTURING
SOURCE: Cenntro Inc.
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PUB: 05/16/2025 08:31 AM/DISC: 05/16/2025 08:31 AM
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