FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will redomicile from Australia to the United States ("U.S.", the “Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc., a corporation incorporated in accordance with the laws of the state of Nevada ( ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will re-domicile from Australia to the United States ("U.S.", the “Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc., a corporation incorporated in accordance with the laws of the state of Nevada ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will re-domicile from Australia to the United States ("U.S.", the “Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc., a corporation incorporated in accordance with the laws of the state of Nevada ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro”, or the “Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, today announced that Cenntro shareholders have voted in favor of the proposed scheme of arrangement in which Cenntro will redomicile from Australia to the United States (“Scheme”), and under which Cenntro will become a wholly owned subsidiary of Cenntro Inc. (“HoldCo”), a United States ("U.S.” ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will re-domicile from Australia to the United States (“Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc. (“HoldCo”), a new United States ("U.S.") company incorporated in accordance with the laws o ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading EV technology company with advanced, market-validated electric commercial vehicles, today reminds shareholders their vote is important to ensure Cenntro successfully redomiciles from Australia to the United States (the “Scheme”) and Cenntro encourages all shareholders to vote their shares in favor of the proposed Scheme resolution at the special meeting of shareholders on January 24, 2024 a ...

Financial Performance - Net revenues for the nine months ended September 30, 2023, were approximately $13.5 million, an increase of approximately $6.3 million or 88.9% from approximately $7.1 million for the same period in 2022[179] - Net revenues for the three months ended September 30, 2023 were approximately $5.8 million, an increase of approximately $3.7 million or 174.9% from approximately $2.1 million for the same period in 2022[204] - Vehicle sales accounted for approximately $5.5 million or 95.6% of total net revenues for the three months ended September 30, 2023, with an increase of 228 units sold compared to the previous year[204] - Vehicle sales accounted for $12,732,639 of the total revenue for the nine months ended September 30, 2023, compared to $6,766,480 in the prior year, indicating an increase of approximately 88.5%[300] - Revenue from Europe for the nine months ended September 30, 2023, was $10,035,492, compared to $5,621,459 in 2022, marking an increase of approximately 78.5%[300] - Revenue from Asia reached $2,983,555 for the nine months ended September 30, 2023, up from $1,052,819 in the prior year, representing an increase of approximately 183.5%[300] - The net loss attributable to the Company's shareholders for the nine months ended September 30, 2023, was $(41,135,098), compared to $(36,803,873) in the same period of 2022, indicating an increase in net loss of approximately 11.5%[308] - Total comprehensive loss attributable to the Company's shareholders for the nine months ended September 30, 2023, was $(44,529,568), slightly down from $(44,659,288) in the same period of 2022[308] Expenses - Cost of goods sold for the nine months ended September 30, 2023, was approximately $11.4 million, an increase of approximately $4.2 million or 57.7% from approximately $7.2 million for the same period in 2022[183] - Selling and marketing expenses for the nine months ended September 30, 2023 were approximately $7.2 million, an increase of approximately $3.0 million or 69.9% from approximately $4.3 million for the same period in 2022[210] - Selling and marketing expenses for the three months ended September 30, 2023, were approximately $2.6 million, an increase of approximately $1.0 million or 60.8% from approximately $1.6 million for the same period in 2022[185] - Research and development expenses for the nine months ended September 30, 2023, were approximately $5.3 million, an increase of approximately $1.7 million or 48.1% from approximately $3.6 million for the same period in 2022[187] - General and administrative expenses for the nine months ended September 30, 2023, were approximately $25.7 million, a decrease of approximately $0.7 million or 2.8% from approximately $26.4 million for the same period in 2022[186] - General and administrative expenses for Q3 2023 were approximately $9.1 million, an increase of 45.8% from $6.2 million in Q3 2022[239] - Total operating expenses increased to $38.30 billion for the nine months ended September 30, 2023, up from $34.32 billion in the same period of 2022[308] Cash Flow and Financial Position - As of September 30, 2023, the company had approximately $44.6 million in cash and cash equivalents, a decrease from approximately $200.4 million as of September 30, 2022[224] - Working capital as of September 30, 2023 was approximately $84.0 million, down from approximately $196.0 million as of September 30, 2022, primarily due to a decrease in cash and cash equivalents[230] - Net cash used in operating activities for the nine months ended September 30, 2023 was approximately $45.6 million, compared to $47.7 million for the same period in 2022[224] - The Company incurred approximately $12.9 million in net cash used in investing activities for the nine months ended September 30, 2023, primarily due to $7.3 million in purchases of plant and equipment[288] - The company reported accounts receivable of $4,645,738 as of September 30, 2023, compared to $565,398 as of December 31, 2022, reflecting a substantial increase[275] - Contractual liabilities increased to $3,084,737 as of September 30, 2023, up from $2,388,480 as of December 31, 2022, indicating a growth of approximately 29.2%[275] - The total equity of the Company as of September 30, 2023, was $132,009,350, a decrease from $171,889,534 as of December 31, 2022[275] Losses and Impairments - The company experienced a loss from the acquisition of Antric amounting to approximately $1.3 million for the nine months ended September 30, 2023, compared to no loss for the same period in 2022[217] - A loss from the acquisition of Antric for Q3 2023 was approximately $1.3 million, compared to no loss in Q3 2022[245] - The change in fair value of equity securities resulted in a loss of approximately $1.9 million for Q3 2023, compared to a gain of $0.2 million in Q3 2022[244] - Impairment of long-term investments for the nine months ended September 30, 2023, was approximately $1.2 million, compared to no impairment in the same period of 2022[246] - The company reported a loss from operations of $(36,242,279) for the nine months ended September 30, 2023, compared to $(34,420,047) in the same period of 2022, indicating an increase in operational losses of approximately 5.3%[308] Future Outlook - The company expects general and administrative expenses to materially increase over the next two years due to growth strategy execution[163] - The company anticipates an increase in research and development expenses as it continues to invest in new ECV models and technologies[171] - The company plans to continue the rollout of new ECV models in North America and Europe, establish local assembly facilities, and expand its Changxing factory over the next twelve months[225] - The company plans to expand its technology through continued investment in research and development, focusing on vehicle development and sustainable energy innovations[257] Research and Development - The company has invested over $86.8 million in research and development since its inception in 2013, with plans to increase this expenditure in the long term[257] - Research and development expenses for the nine months ended September 30, 2023, were $(5,347,785), up from $(3,610,780) in the same period of 2022, reflecting an increase of approximately 48.1%[308]

Revenue and Sales Performance - Net revenues for the six months ended June 30, 2023, were approximately $7.7 million, an increase of approximately $2.7 million or 53.1% from approximately $5.0 million for the same period in 2022[69]. - Vehicle sales for the six months ended June 30, 2023, amounted to $7.2 million, representing a 93.7% contribution to total net revenues, compared to $4.9 million in the same period of 2022[48]. - The company sold 364 ECVs in the first half of 2023, an increase from 337 ECVs in the same period of 2022, with a notable increase in average selling price from approximately $14,400 to $19,797[70]. - Revenue for the six months ended June 30, 2023, was $7,708,064, representing a 53% increase from $5,035,322 for the same period in 2022[104]. - Net revenues for the three months ended June 30, 2023, were $4,237,520, an increase from $3,204,689 in the same period of 2022, representing a growth of approximately 32.3%[109]. - Vehicle sales for the six months ended June 30, 2023, reached $7,226,049, a 49% increase from $4,852,930 in the same period of 2022[231]. - Revenue from Europe was $5,531,486 for the six months ended June 30, 2023, compared to $2,963,630 in the same period of 2022, indicating an increase of 86%[232]. Profitability and Expenses - Gross profit for the six months ended June 30, 2023, was approximately $1.3 million, with an overall gross margin of approximately 17.4%, up from 10.6% in the same period of 2022[74]. - Selling and marketing expenses for the three months ended June 30, 2023, were approximately $2.7 million, an increase of approximately $1.2 million or 79.1% from approximately $1.5 million for the same period in 2022[55]. - Total operating expenses for the six months ended June 30, 2023, were $24,968,200, slightly up from $24,667,364 in the same period of 2022[110]. - The net loss attributable to the Company's shareholders for the six months ended June 30, 2023, was $25,032,433, compared to $22,383,648 in the same period of 2022[110]. - The company reported a net loss of $(25,032,433) for the six months ended June 30, 2023, compared to a net loss of $(22,383,648) for the same period in 2022, representing a 12% increase in losses[194]. - Total comprehensive loss for the three months ended June 30, 2023, was $16,902,137, compared to $17,784,160 for the same period in 2022, showing a reduction in losses[109]. - Total comprehensive loss for the six months ended June 30, 2023, was $27,678,836, compared to $26,879,375 in the same period of 2022[110]. Cash Flow and Financial Position - The company reported a net cash used in operating activities of approximately $35.6 million for the six months ended June 30, 2023, compared to $29.1 million for the same period in 2022[79]. - Net cash used in operating activities for the six months ended June 30, 2023, was $(35,499,138), compared to $(29,071,262) for the same period in 2022, representing a 22% increase in cash outflow[185]. - Cash and cash equivalents were reported at $60.39 million, significantly lower than $153.97 million at the end of 2022, indicating a decrease of about 60.7%[129]. - The company reported a net decrease in cash, cash equivalents, and restricted cash of $93,614,168 for the six months ended June 30, 2023, compared to a decrease of $78,125,372 in the prior year[163]. - As of June 30, 2023, cash, cash equivalents, and restricted cash at the end of the period stood at $60,482,633, down from $183,539,590 at the end of the same period in 2022[163]. - Total liabilities as of June 30, 2023, were $59,156,553, a decrease from $95,958,782 as of December 31, 2022[107]. - The company has total current liabilities of $26,525,120, down from $70,249,208 as of December 31, 2022[93]. - The company’s total equity attributable to shareholders decreased to $146,890,705 as of June 30, 2023, from $172,366,669 at the end of 2022[93]. Assets and Investments - The company reported total assets of $206,045,737 as of June 30, 2023, a decrease from $267,848,316 as of December 31, 2022[93]. - Accounts receivable as of June 30, 2023, amounted to $2,646,333, compared to $565,398 in the previous period[93]. - Total current assets decreased to $123.49 million as of June 30, 2023, down from $203.01 million as of December 31, 2022, representing a decline of approximately 39.2%[129]. - The company reported a significant increase in inventories, rising to $41.80 million from $31.84 million, an increase of approximately 31.2%[129]. - The company’s long-term investments decreased from $5,325,741 as of December 31, 2022, to $3,959,769 as of June 30, 2023, a reduction of 26%[214]. Legal and Compliance - The company has identified material weaknesses in its internal control over financial reporting as of June 30, 2023, which management is currently addressing[134]. - The company is involved in ongoing legal proceedings, including a lawsuit seeking $19 million in damages related to stock options[137]. - The company is awaiting further proceedings in an arbitration case seeking $1.13 million for outstanding invoices[152]. - The company has initiated a remediation plan to address previously identified material weaknesses in internal controls[135]. Strategic Initiatives - The company plans to regionalize manufacturing and supply chains for electric commercial vehicles (ECVs) in North America and the European Union to reduce transit times and costs[184]. - The company aims to expand its channel partner network and local assembly facilities to enhance after-sales market services offerings[184]. - The company completed the acquisition of Cenntro Elecautomotiv, S.L. in Spain, which includes a local office and service center in Barcelona[98]. - The company has entered into agreements to acquire 100% of the shareholder loan and 65% of the issued shares in Cenntro Automotive Europe GmbH, enhancing its market presence in Europe[208].

Revenue and Sales Performance - Net revenues for the three months ended March 31, 2023, were generated primarily from vehicle sales, including Metro® vehicles, and totaled $4,846,609, representing a 56% increase compared to the same period in 2022[292]. - Net revenues for the three months ended March 31, 2023, were approximately $3.5 million, an increase of approximately $1.6 million or 89.6% from approximately $1.8 million for the same period in 2022[342]. - Vehicle sales accounted for $2.84 million or 81.9% of total net revenues, while spare-part sales contributed $598,036 or 17.2%[343]. - The majority of net revenues were generated from vehicle sales in the European Union, accounting for 88.2% of total revenues for the three months ended March 31, 2023[318]. - Net revenues for Q1 2023 were $3,470,544, a significant increase from $1,830,633 in Q1 2022, representing an 89.8% year-over-year growth[440]. Cost and Expense Analysis - The gross margin of vehicle sales significantly decreased to 1.63% for the three months ended March 31, 2023, down from 19.7% in the same period of 2022[312]. - Cost of goods sold for the three months ended March 31, 2023, was approximately $3.3 million, an increase of approximately $1.8 million or 123.2% from approximately $1.5 million in the same period of 2022[345]. - Selling and marketing expenses increased by approximately $0.8 million or 70.7% to approximately $1.9 million for the three months ended March 31, 2023, compared to approximately $1.1 million in 2022[322]. - General and administrative expenses decreased by approximately $0.9 million or 10.7% to approximately $7.3 million for the three months ended March 31, 2023, from approximately $8.2 million in 2022[347]. - Research and development expenses increased to approximately $1.57 million for the three months ended March 31, 2023, compared to approximately $0.43 million in the same period of 2022[322]. - Total operating expenses rose to $10,797,168 in Q1 2023, compared to $9,732,298 in Q1 2022, reflecting an increase of 10.9%[440]. Financial Position and Cash Flow - As of March 31, 2023, the Company had approximately $91.8 million in cash and cash equivalents, a decrease from approximately $203.5 million as of March 31, 2022[355]. - Net cash used in operating activities was approximately $17.4 million for the three months ended March 31, 2023, compared to $23.5 million for the same period in 2022[355]. - Cash and cash equivalents are expected to be sufficient for the next twelve months to execute the business strategy, which includes the rollout of new ECV models and establishing local assembly facilities in the U.S. and EU[356]. - Total current assets decreased to $147.18 million from $203.01 million, a decline of approximately 27.5%[437]. - Cash and cash equivalents decreased to $91.85 million from $153.97 million, a decline of approximately 40.3%[437]. - Total assets decreased to $221.07 million from $267.85 million, a decline of approximately 17.4%[437]. Losses and Impairments - The net loss attributable to shareholders of the Company for the three months ended March 31, 2023, was approximately $10.96 million, compared to a net loss of approximately $9.31 million in 2022[340]. - The net loss for the three months ended March 31, 2023, was approximately $11.11 million, compared to a net loss of $9.35 million in the same period of 2022[371]. - The company reported an impairment of long-term investment amounting to $1,146,128 in Q1 2023, which was not present in Q1 2022[440]. Legal and Regulatory Matters - The company is involved in various legal proceedings, including a claim seeking $1,126,640 for outstanding invoices, which may impact its financial position[294]. - The company is currently addressing material weaknesses in internal controls over financial reporting, which have not yet been remediated as of March 31, 2023[442][443]. - The Company does not believe that the claims in the Sevic Lawsuit have merit and intends to defend against them vigorously, with total claimed damages of approximately $628,109[425]. Investments and Acquisitions - The company acquired lots in the Zofia Free Trade Zone for a total consideration of approximately $1,063,271, with public deeds signed on April 27, 2023[300]. - The Company invested RMB15,400,000 (approximately $2,242,414) in Entropy Yu to acquire 99.355% of the partnership entity's equity interest on September 25, 2022[407]. Accounting and Financial Reporting - The Company adopted the new lease accounting standard ASC Topic 842 as of January 1, 2019, which allows for the carry forward of historical lease classification and does not require reassessment of existing contracts[392]. - The Company recognized operating right-of-use assets and operating lease liabilities for all operating leases except for short-term leases, which are defined as leases with an initial term of 12 months or less[392]. - The Company has adopted ASU 2016-13 effective January 1, 2023, with no material impact on its consolidated financial statements[417]. - The Company is currently evaluating the impact of ASU 2021-08 on its consolidated financial statements, which amends ASC 805 regarding the recognition and measurement of contract assets and liabilities in a business combination[394].

Vehicle Development and Production - The company has developed six series of commercial vehicle models, including Metro®, Logistar™, Logimax™, Avantier™, Teemak™, and Antric One, and has begun production and delivery into global markets[22]. - The Metro® has obtained EU Small Series Type Approval under N1 vehicle classification, allowing for annual sales of up to 1,500 units in the European Union market[94]. - The Logistar™ Series vehicles are designed for on-road applications with a gross vehicle weight rate under 19,500 lbs, targeting both European and North American markets[95]. - The Antic One cargo bike has a payload capacity of 270 kg and a cargo volume of over 2 m³, with production starting in November 2022 and an advanced version expected to begin production by August 2023[103]. - Cenntro sold three units of the Cenntro iChassis™ in 2022, which is designed for automated or autonomous driving vehicles[105]. Battery Technology and Economics - Lithium-ion battery pack prices decreased from over $1,200 per kilowatt-hour in 2010 to $132/kWh in 2021, representing a decline of approximately 89%[22]. - The company anticipates that battery prices will continue to decrease in the long term, with BNEF forecasting average prices to fall below $100/kWh by 2024[22]. - The company is investing in technology and supply chains to improve battery production and distribution networks, enhancing the economics of battery-powered electric commercial vehicles[22]. - The company has developed advanced lithium iron phosphate (LFP) battery technology aimed at providing safer, lower-cost, and longer-lasting batteries for electric vehicles[123]. Manufacturing and Assembly Strategy - The company has shifted its manufacturing strategy to rely on third-party OEMs for vehicle kits and assembly, allowing for lower capital investment compared to traditional automotive companies[23]. - The company is establishing a distributed manufacturing model, enabling local assembly of vehicle kits in micro factories, which requires less capital investment[40]. - The Company has established local assembly facilities in Northern America, including Jacksonville, Florida, and Freehold, New Jersey, to meet anticipated demand[64]. - The Company has made several acquisitions, including the acquisition of CAE in 2023, to expand local assembly capacity in the European Union for its ECV models[64]. Market Trends and Regulations - The global electric vehicle (EV) market was valued at approximately $163.01 billion in 2020 and is projected to reach approximately $823.75 billion by 2030, representing a compound annual growth rate of 18.2% from 2021 to 2030[60]. - The Biden administration aims for net-zero emissions economy-wide by no later than 2050, with several states, including California and New York, announcing bans on new internal combustion engine (ICE) vehicles by 2030 and 2035 respectively[86]. - The European Union has mandated a 15% reduction in CO2 emissions for heavy-duty vehicles by 2025 and a 30% reduction by 2030, impacting manufacturers significantly[84]. Financial Performance - The Company reported a total revenue of $27,713,532 for the year ended December 31, 2022, compared to $2,973,920 for the year ended December 31, 2021, representing an increase of approximately 831%[143]. - During the year ended December 31, 2022, total material cash transfers within the organization amounted to approximately USD 44.5 million, including a $12.0 million loan to a wholly owned Hong Kong subsidiary[81]. - The company recorded an impairment loss for goodwill of $11,111,886 for the year ended December 31, 2022, compared to nil in 2021[114]. - Inventories were written down by $2.2 million and $1.3 million for the years ended December 31, 2022, and 2021, respectively, to reflect the lower of cost or net realizable value[110]. Governance and Compliance - The Company has retained a consulting firm to assist in compliance with The Sarbanes-Oxley Act, focusing on developing formal policies and strengthening internal control processes[158]. - The Company’s financial statements are subject to audit in accordance with Australian Accounting Standards, with Wis Audit Pty Ltd appointed as the independent auditor[154]. - The audit committee has been actively involved in reviewing and approving related party transactions and ensuring compliance with accounting standards[171]. - The company has established three committees under the board: audit, compensation, and nominating, to enhance governance and oversight[194]. Executive Compensation - For the fiscal year 2022, Peter Z. Wang, the CEO, received a total compensation of $1,270,165, which includes a salary of $350,000 and stock awards valued at $920,165[202]. - Edmond Cheng, the CFO, earned a total compensation of $764,022 in 2022, comprising a salary of $300,000 and stock awards worth $464,022[202]. - Marianne McInerney, the Chief Marketing Officer, received total compensation of $410,988 in 2022, including a salary of $250,000 and stock awards valued at $160,988[202]. - The company is classified as an emerging growth company, exempt from certain executive compensation disclosure requirements[217]. - The compensation program aims to attract and retain outstanding individuals while aligning the interests of the executive team with those of equity holders[219].