Centro(US:CENN)2023-08-13 16:00Revenue 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].