10-Q - Cenntro Inc. (0001707919) (Filer)

Thu, May 15, 8:50 PM (60 days ago)

**Cenntro Inc. (CENN) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $2,143,058 (down 8.5% YoY from $2,342,918). - **Gross Profit:** $321,527 (up 89.3% YoY from $169,207). - **Operating Loss:** $6,173,536 (down 21.6% YoY from $7,874,746). - **Net Loss:** $5,665,657 (down 38.8% YoY from $9,230,223). - **Cash Flow:** Negative $4,954,514 from operations. **Key Metrics & Trends:** - **Gross Margin:** 15.0% (up from 7.2% YoY). - **Vehicle Sales:** $1,811,264 (up 19.7% YoY from $1,523,110). - **Spare-part Sales:** $170,815 (down 78.6% YoY from $788,814). - **Other Sales:** $160,979 (up 424.3% YoY from $30,994). - **ECVs Sold:** 129 units (up 32.3% YoY from 96 units). **Operational Impact & Future Outlook:** - **Market Focus:** Shift to North American market, participation in EV incentive programs. - **Strategic Changes:** Return to distributor-focused model in Europe, hybrid sales approach in North America. - **Liquidity:** Sufficient cash for next 12 months, plans to increase revenues and control costs. - **Long-term Plans:** Regionalize manufacturing, expand channel partner network, invest in R&D. **Uncertainties & Risks:** - **Legal Proceedings:** Ongoing lawsuits and intellectual property disputes. - **Economic Factors:** Changes in interest rates, economic conditions, and market demand. - **Operational Risks:** Supply chain disruptions, technological advancements, and competitive environment. **Financial Position:** - **Cash & Equivalents:** $8,536,714 (down 33.5% from $12,547,168). - **Total Assets:** $129,341,972 (down 2.4% from $132,566,314). - **Total Liabilities:** $55,909,814 (up 2.4% from $54,606,812). - **Shareholders' Equity:** $73,432,158 (down 3.8% from $77,959,502). **Conclusion:** Cenntro Inc. showed improved gross margins and vehicle sales but faced challenges in spare-part sales and overall revenue. The company is strategically shifting its focus to North America and plans to enhance its market position through increased R&D and operational efficiency. However, it faces uncertainties from legal proceedings and economic factors.