Centro(US:CENN)2024-11-12 14:30Financial Performance - Net revenues for the nine months ended September 30, 2024, were $28,443,831, compared to $13,470,895 for the same period in 2023, representing a 111% increase[154]. - The company reported a net loss of $27,405,605 for the nine months ended September 30, 2024, compared to a net loss of $41,294,342 for the same period in 2023, indicating a 34% reduction in losses[154]. - For the three months ended September 30, 2024, net revenues were approximately $16.7 million, an increase of approximately $11.0 million or 190.3% from approximately $5.8 million for the same period in 2023[158]. - The company reported a net loss of approximately $27.4 million for the nine months ended September 30, 2024, adjusted for non-cash items totaling approximately $12.1 million[212]. - For the nine months ended September 30, 2024, net cash used in operating activities was approximately $12.9 million, a significant improvement compared to $45.6 million for the same period in 2023, indicating a reduction of approximately 71.7%[210]. Revenue Breakdown - Vehicle sales contributed approximately $15.9 million to net revenues for the nine months ended September 30, 2024, with an average selling price increase from approximately $19,234 to $23,125[157]. - Vehicle sales contributed $25,483,836 to total revenues for the nine months ended September 30, 2024, compared to $12,732,639 in 2023, indicating an increase of about 100%[249]. - Revenue from spare parts sales rose to $2,783,954 in 2024 from $586,632 in 2023, reflecting a growth of approximately 373%[249]. - The Company’s revenue from Europe for the nine months ended September 30, 2024, was $17,071,721, a substantial increase from $451,848 in 2023[251]. - Revenue from Asia decreased to $7,260,544 in 2024 from $10,035,492 in 2023, representing a decline of approximately 28%[251]. - Revenue from America increased to $4,080,473 in 2024 from $2,983,555 in 2023, showing an increase of about 37%[251]. Cost and Expenses - Operating expenses totaled $33,889,349 for the nine months ended September 30, 2024, down from $38,301,735 in the same period of 2023, reflecting a 12% decrease[154]. - Selling and marketing expenses increased to $7,651,305 for the nine months ended September 30, 2024, compared to $7,238,563 in the same period of 2023, showing a 6% increase[154]. - Research and development expenses were $4,292,153 for the nine months ended September 30, 2024, down from $5,347,785 in the same period of 2023, representing a 20% decrease[154]. - General and administrative expenses for the nine months ended September 30, 2024, were approximately $21.9 million, a decrease of approximately $3.8 million or 14.7% from approximately $25.7 million for the same period in 2023[177]. - Selling and marketing expenses for the nine months ended September 30, 2024, were approximately $7.7 million, an increase of approximately $0.4 million or 5.7% from approximately $7.2 million for the same period in 2023[174]. Cash Flow and Investments - As of September 30, 2024, the company had approximately $21.8 million in cash and cash equivalents, down from approximately $44.6 million as of September 30, 2023[201]. - Net cash provided by investing activities was approximately $4.9 million for the nine months ended September 30, 2024, primarily due to cash received from redeeming financial investments of approximately $8.4 million[213]. - Net cash provided by financing activities was approximately $1.2 million for the nine months ended September 30, 2024, mainly from proceeds of bank loans and loans from third parties[214]. - The company has spent over approximately $94.3 million in research and development activities since inception in 2013 through September 30, 2024, and plans to increase R&D expenditure in the long term[206]. Market Outlook and Strategy - The company expects substantial revenue growth from the US market starting in 2024 as it shifts focus to North American sales and introduces new models[140]. - The company plans to continue the rollout of new ECV models in North America and Europe, and establish local assembly facilities in the United States over the next twelve months[202]. - The company has committed resources to research and development for new ECV models and related technologies, indicating a focus on innovation and market expansion[145]. Other Financial Metrics - The gross profit for the nine months ended September 30, 2024, was $5,282,088, compared to $2,059,456 for the same period in 2023, marking a 156% increase[154]. - The majority of net revenues for the nine months ended September 30, 2024, were generated from vehicle sales in the U.S., accounting for 60.1% of total revenues[164]. - The company reported an overall gross margin of approximately 18.6% for the nine months ended September 30, 2024, compared to 15.3% for the same period in 2023[172]. - A gain in the change in fair value of equity securities for the nine months ended September 30, 2024, was approximately $0.8 million compared to a loss of approximately $1.2 million for the same period in 2023[188]. - Net interest expense for the nine months ended September 30, 2024, was approximately $0.06 million, a decrease of approximately 57.4% compared to $0.1 million for the same period in 2023[181].