Centro(US:CENN)2023-06-29 16:00Vehicle 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].