CENN

FREEHOLD, N.J., May 16, 2025--(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 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 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) CENNTRO INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS(Expressed in U.S. dollars, except for number of shares) CENNTRO INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS   View source version on businesswire.com: https://www.businesswire.com/news/home/20250516353900/en/ Contacts Investor Relations Contact: Chris TysonMZ North [email protected] 949-491-8235 Company Contact: [email protected] [email protected]

FREEHOLD, N.J., April 02, 2025--(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 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.   View source version on businesswire.com: https://www.businesswire.com/news/home/20250402265425/en/ Contacts Investor Relations Contact: Chris TysonMZ North [email protected] 949-491-8235 Company Contact: [email protected] [email protected]