Q3 2023 Net Revenue Increased 175% to
Number of Vehicles Sold Increased by 326% to 298 Vehicles
Gross Profit Margin Increased 4,260 bps to 12.4% from a loss of -30.3%
Average Selling Price Increased by 15.7% to Approximately
Third Quarter 2023 Financial and Operating Highlights
-
Net revenue of
$5.8 million increased 175% year over year; - Sales volume increased by 326% year over year and 27% sequentially quarter over quarter to 298 vehicles;
-
Average selling price (“ASP”) increased 15.7% year over year to approximately
$19,200 ; and -
Adjusted EBITDA for the quarter is a loss of
$12.1 million compared to a loss of$12.0 million for Q3 2022.
“We built on our second quarter results by expanding our vehicle lineup to include Avantier and Antric, as well as our assembly capabilities in
“Cenntro’s most recent US assembly and manufacturing facility in
“Cenntro’s LS400 was also approved for the Commercial Clean Vehicle Credit, allowing purchasers to apply for a Federal Tax Credit under IRC 45W. Further, in conjunction with the
“Our footprint in the European market continues to build in scale with our EVC customer base looking for competitive products to complete their local commerce needs and allowing them to participate in Zero Emission initiatives. We have also determined that providing a compatible charging solution to our customers that is available for sale along with our product line is vital. We have begun to develop relationships that will allow us to provide a charging solution as part of the sales transaction.
“Looking ahead, we continue to position Cenntro to capture market share with our diverse and innovative lineup of all-electric vehicles and an expanded geographic footprint for production, distribution, and service infrastructure. Combined with our hybrid EV Center and distribution partner sales model, we continue to gain traction with customers,” concluded Wang.
“Our average sales price was approximately
“As of
Third Quarter 2023 Financial Results
Net Revenue
Net revenue was
Gross Profit
Gross Profit for the three months ended
Operating Expenses
Total operating expenses were approximately
Selling and marketing expenses for the three months ended
General and administrative expenses for the three months ended
Research and development expenses for the three months ended
Net Loss
Net loss was approximately
Balance Sheet
Cash and cash equivalents were approximately
Adjusted EBITDA
Adjusted EBITDA was approximately
We define Adjusted EBITDA as net income (or net loss) before net interest expense, income tax expense, depreciation and amortization as further adjusted to exclude the impact of stock-based compensation expense and other non-recurring expenses including expenses related to TME Acquisition, expenses related to one-off payment inherited from the original
US-GAAP NET INCOME (LOSS) TO ADJUSTED EBITDA RECONCILIATION
|
|
Three Months ended
|
|
|
Nine Months ended |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
(Expressed in |
|
(Unaudited) |
|
|
(Unaudited) |
|
||||||||||
Net loss |
|
$ |
(16,103,199 |
) |
|
$ |
(15,088,738 |
) |
|
$ |
(41,294,342 |
) |
|
$ |
(38,143,026 |
) |
Interest expense, net |
|
|
84,573 |
|
|
|
110,659 |
|
|
|
137,726 |
|
|
|
(176,214 |
) |
Income tax expense |
|
|
(384 |
) |
|
|
(43,366 |
) |
|
|
25,084 |
|
|
|
(92,228 |
) |
Depreciation and amortization |
|
|
425,218 |
|
|
|
431,290 |
|
|
|
1,213,489 |
|
|
|
916,227 |
|
Share-based compensation expense |
|
|
2,154,710 |
|
|
|
1,314,446 |
|
|
|
4,565,001 |
|
|
|
2,624,302 |
|
Loss on redemption of convertible promissory notes |
|
|
(966 |
) |
|
|
- |
|
|
|
(865 |
) |
|
|
- |
|
Loss on exercise of warrants |
|
|
1,134 |
|
|
|
- |
|
|
|
228,749 |
|
|
|
|
|
Convertible bond issuance fee |
|
|
- |
|
|
|
5,589,336 |
|
|
|
- |
|
|
|
5,589,336 |
|
Change in fair value of convertible promissory notes and derivative liability |
|
|
(15,143 |
) |
|
|
(4,280,538 |
) |
|
|
(88,568 |
) |
|
|
(4,280,538 |
) |
Loss from acquisition of Antric |
|
|
1,316,772 |
|
|
|
- |
|
|
|
1,316,772 |
|
|
|
- |
|
Expenses related to TME Acquisition |
|
|
- |
|
|
|
- |
|
|
|
-- |
|
|
|
348,987 |
|
Expenses related to one-off payment inherited from the original |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,299,178 |
|
Adjusted EBITDA |
$ |
(12,135,425 |
) |
$ |
(11,966,911 |
) |
|
$ |
(33,896,954 |
) |
|
$ |
(24,913,976 |
) |
Represents a non-GAAP financial measure.
About
Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) |
||||||||||
|
|
|
|
2023 |
|
2022 |
||||
|
|
|
|
(Unaudited) |
|
|
||||
ASSETS |
|
|
|
|
|
|
||||
Current assets: |
|
|
|
|
|
|
||||
Cash and cash equivalents |
|
|
|
$ |
44,645,341 |
|
|
$ |
153,966,777 |
|
Restricted cash |
|
|
|
|
198,041 |
|
|
|
130,024 |
|
Accounts receivable, net |
|
|
|
|
4,645,738 |
|
|
|
565,398 |
|
Inventories |
|
|
|
|
43,081,772 |
|
|
|
31,843,371 |
|
Prepayment and other current assets |
|
|
|
|
17,360,617 |
|
|
|
16,138,330 |
|
Deferred cost -current |
|
|
|
|
14,281 |
|
|
|
- |
|
Amounts due from a related party |
|
|
|
|
210,335 |
|
|
|
366,936 |
|
Total current assets |
|
|
|
|
110,156,125 |
|
|
|
203,010,836 |
|
|
|
|
|
|
|
|
|
|
||
Non-current assets: |
|
|
|
|
|
|
|
|
||
long-term investment, net |
|
|
|
|
3,557,697 |
|
|
|
5,325,741 |
|
Investment in equity securities |
|
|
|
|
28,593,070 |
|
|
|
29,759,195 |
|
Property, plant and equipment, net |
|
|
|
|
20,132,381 |
|
|
|
14,962,591 |
|
Intangible assets, net |
|
|
|
|
6,384,532 |
|
|
|
4,563,792 |
|
Right-of-use assets |
|
|
|
|
20,679,376 |
|
|
|
8,187,149 |
|
Deferred cost - non-current |
|
|
|
|
206,700 |
|
|
|
- |
|
Other non-current assets, net |
|
|
|
|
2,152,968 |
|
|
|
2,039,012 |
|
Total non-current assets |
|
|
|
|
81,706,724 |
|
|
|
64,837,480 |
|
|
|
|
|
|
|
|
|
|
||
Total Assets |
|
|
|
$ |
191,862,849 |
|
|
$ |
267,848,316 |
|
|
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
|
|
||
Accounts payable |
|
|
|
$ |
4,842,645 |
|
|
$ |
3,383,021 |
|
Accrued expenses and other current liabilities |
|
|
|
|
3,663,756 |
|
|
|
5,048,641 |
|
Contractual liabilities |
|
|
|
|
3,084,737 |
|
|
|
2,388,480 |
|
Operating lease liabilities, current |
|
|
|
|
4,548,226 |
|
|
|
1,313,334 |
|
Convertible promissory notes |
|
|
|
|
9,953,562 |
|
|
|
57,372,827 |
|
Deferred government grant, current |
|
|
|
|
52,721 |
|
|
|
26,533 |
|
Amounts due to related parties |
|
|
|
|
37,951 |
|
|
|
716,372 |
|
Total current liabilities |
|
|
|
|
26,183,598 |
|
|
|
70,249,208 |
|
|
|
|
|
|
|
|
|
|
||
Non-current liabilities: |
|
|
|
|
|
|
|
|
||
Deferred government grant, non-current |
|
|
|
|
948,971 |
|
|
|
497,484 |
|
Derivative liability - investor warrant |
|
|
|
|
12,191,457 |
|
|
|
14,334,104 |
|
Derivative liability - placement agent warrant |
|
|
|
|
3,455,328 |
|
|
|
3,456,404 |
|
Operating lease liabilities, non-current |
|
|
|
|
17,074,145 |
|
|
|
7,421,582 |
|
Total non-current liabilities |
|
|
|
|
33,669,901 |
|
|
|
25,709,574 |
|
|
|
|
|
|
|
|
|
|
||
Total Liabilities |
|
|
|
$ |
59,853,499 |
|
|
$ |
95,958,782 |
|
|
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
||
EQUITY |
|
|
|
|
|
|
|
|
||
Ordinary shares (No par value; 304,449,091 and 300,841,995 shares issued and outstanding as of |
|
|
|
|
- |
|
|
|
- |
|
Additional paid in capital |
|
|
|
|
401,672,121 |
|
|
|
397,497,817 |
|
Accumulated deficit |
|
|
|
|
(260,959,274 |
) |
|
|
(219,824,176 |
) |
Accumulated other comprehensive loss |
|
|
|
|
(8,701,442 |
) |
|
|
(5,306,972 |
) |
Total equity attributable to shareholders |
|
|
|
|
132,011,405 |
|
|
|
172,366,669 |
|
Non-controlling interests |
|
|
|
|
(2,055 |
) |
|
|
(477,135 |
) |
Total Equity |
|
|
|
$ |
132,009,350 |
|
|
$ |
171,889,534 |
|
Total Liabilities and Equity |
|
|
|
$ |
191,862,849 |
|
|
$ |
267,848,316 |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
||||||||||||
|
|
|
|
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net revenues |
|
|
|
$ |
5,762,831 |
|
|
$ |
2,096,590 |
|
|
$ |
13,470,895 |
|
|
$ |
7,131,912 |
|
||
Cost of goods sold |
|
|
|
|
|
(5,045,364 |
) |
|
|
(2,730,920 |
) |
|
|
(11,411,439 |
) |
|
|
(7,234,760 |
) |
|
Gross profit |
|
|
|
|
|
717,467 |
|
|
|
(634,330 |
) |
|
|
2,059,456 |
|
|
|
(102,848 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selling and marketing expenses |
|
|
|
|
|
(2,626,829 |
) |
|
|
(1,633,340 |
) |
|
|
(7,238,563 |
) |
|
|
(4,259,908 |
) |
|
General and administrative expenses |
|
|
|
|
|
(9,071,910 |
) |
|
|
(6,220,227 |
) |
|
|
(25,715,387 |
) |
|
|
(26,446,511 |
) |
|
Research and development expenses |
|
|
|
|
|
(1,634,796 |
) |
|
|
(1,796,268 |
) |
|
|
(5,347,785 |
) |
|
|
(3,610,780 |
) |
|
Total operating expenses |
|
|
|
|
|
(13,333,535 |
) |
|
|
(9,649,835 |
) |
|
|
(38,301,735 |
) |
|
|
(34,317,199 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss from operations |
|
|
|
|
|
(12,616,068 |
) |
|
|
(10,284,165 |
) |
|
|
(36,242,279 |
) |
|
|
(34,420,047 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OTHER EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest (expense) income, net |
|
|
|
|
|
(84,573 |
) |
|
|
(110,659 |
) |
|
|
(137,726 |
) |
|
|
176,214 |
|
|
(Loss) Income from long-term investment |
|
|
|
|
|
(107,069 |
) |
|
|
36,441 |
|
|
|
(236,672 |
) |
|
|
47,319 |
|
|
Loss from acquisition of |
|
|
|
|
|
(1,316,772 |
) |
|
|
- |
|
|
|
(1,316,772 |
) |
|
|
- |
|
|
Impairment of long-term investment |
|
|
|
|
(2,668 |
) |
|
|
- |
|
|
|
(1,157,334 |
) |
|
|
- |
|
||
Gain on redemption of convertible promissory notes |
|
|
|
|
|
966 |
|
|
|
- |
|
|
|
865 |
|
|
|
- |
|
|
Loss on exercise of warrants |
|
|
|
|
|
(1,134 |
) |
|
|
- |
|
|
|
(228,749 |
) |
|
|
- |
|
|
Change in fair value of convertible promissory notes and derivative liability |
|
|
|
|
|
15,143 |
|
|
|
4,280,538 |
|
|
|
88,568 |
|
|
|
4,280,538 |
|
|
Convertible bond issuance cost |
|
|
|
|
|
- |
|
|
|
(5,589,336 |
) |
|
|
- |
|
|
|
(5,589,336 |
) |
|
Change in fair value of equity securities |
|
|
|
|
|
(1,879,593 |
) |
|
|
19,052 |
|
|
|
(1,166,125 |
) |
|
|
19,052 |
|
|
Other expense, net |
|
|
|
|
|
(111,815 |
) |
|
|
(3,483,975 |
) |
|
|
(873,034 |
) |
|
|
(2,748,994 |
) |
|
Loss before income taxes |
|
|
|
|
|
(16,103,583 |
) |
|
|
(15,132,104 |
) |
|
|
(41,269,258 |
) |
|
|
(38,235,254 |
) |
|
Income tax benefit (expense) |
|
|
|
|
|
384 |
|
|
|
43,366 |
|
|
|
(25,084 |
) |
|
|
92,228 |
|
|
Net loss |
|
|
|
|
|
(16,103,199 |
) |
|
|
(15,088,738 |
) |
|
|
(41,294,342 |
) |
|
|
(38,143,026 |
) |
|
Less: net loss attributable to non-controlling interests |
|
|
|
|
|
(534 |
) |
|
|
(668,512 |
) |
|
|
(159,244 |
) |
|
|
(1,339,153 |
) |
|
Net loss attributable to the Company’s shareholders |
|
|
|
|
$ |
(16,102,665 |
) |
|
$ |
(14,420,226 |
) |
|
$ |
(41,135,098 |
) |
|
$ |
(36,803,873 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
OTHER COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Foreign currency translation adjustment |
|
|
|
|
|
(931,345 |
) |
|
|
(3,686,137 |
) |
|
|
(3,419,038 |
) |
|
|
(7,511,222 |
) |
|
Total comprehensive loss |
|
|
|
|
|
(17,034,544 |
) |
|
|
(18,774,875 |
) |
|
|
(44,713,380 |
) |
|
|
(45,654,248 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Less: total comprehensive loss attributable to non-controlling interests |
|
|
|
|
|
(534 |
) |
|
|
(454,156 |
) |
|
|
(183,812 |
) |
|
|
(994,960 |
) |
|
Total comprehensive loss to the Company’s shareholders |
|
|
|
|
$ |
(17,034,010 |
) |
|
$ |
(18,320,719 |
) |
|
$ |
(44,529,568 |
) |
|
$ |
(44,659,288 |
) |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
||||||||
|
|
|
|
|||||
|
|
For the Nine Months Ended |
|
|||||
|
|
2023 |
|
|
2022 |
|
||
|
|
|
|
|
|
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net cash used in operating activities |
|
$ |
(45,588,906 |
) |
|
$ |
(47,671,865 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of equity investment |
|
|
(680,932 |
) |
|
|
(3,616,188 |
) |
Purchase of equity securities |
|
|
- |
|
|
|
(5,000,000 |
) |
Purchase of plant and equipment |
|
|
(7,329,509 |
) |
|
|
(1,479,712 |
) |
Purchase of land use right and property |
|
|
(2,183,430 |
) |
|
|
(16,764,322 |
) |
Purchase of other intangible assets |
|
|
(7,502 |
) |
|
|
- |
|
Acquisition of CAE’s equity interests |
|
|
(1,924,557 |
) |
|
|
(3,612,717 |
) |
Cash acquired from acquisition of CAE |
|
|
- |
|
|
|
1,118,700 |
|
Acquisition of Antric Gmbh’s equity interests |
|
|
(1 |
) |
|
|
- |
|
Cash acquired from acquisition of |
|
|
1,376 |
|
|
|
- |
|
Payment of expense for Acquisition of CAE’s equity interests |
|
|
- |
|
|
|
(348,987 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
842 |
|
|
|
314 |
|
Loans provided to third parties |
|
|
(790,000 |
) |
|
|
(1,276,617 |
) |
Repayment of loans from related parties |
|
|
- |
|
|
|
281,436 |
|
Net cash used in investing activities |
|
|
(12,913,713 |
) |
|
|
(30,698,093 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repayment of loans to related parties |
|
|
- |
|
|
|
(1,734,016 |
) |
Repayment of loans to third parties |
|
|
- |
|
|
|
(1,128,070 |
) |
Repayment of bank loans |
|
|
(602,477 |
) |
|
|
- |
|
Purchase of CAE’s loan |
|
|
- |
|
|
|
(13,228,101 |
) |
Reduction of capital |
|
|
- |
|
|
|
(13,930,000 |
) |
Proceed from issuance of convertible promissory notes |
|
|
- |
|
|
|
54,069,000 |
|
Redemption of convertible promissory notes |
|
|
(47,534,119 |
) |
|
|
- |
|
Proceed from exercise of share-based awards |
|
|
- |
|
|
|
14,386 |
|
Payment of expense for the reverse recapitalization |
|
|
- |
|
|
|
(904,843 |
) |
Net cash (used in) provided by financing activities |
|
|
(48,136,596 |
) |
|
|
23,158,356 |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(2,614,204 |
) |
|
|
(5,456,870 |
) |
|
|
|
|
|
|
|
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
(109,253,419 |
) |
|
|
(60,668,472 |
) |
Cash, cash equivalents and restricted cash at beginning of period |
|
|
154,096,801 |
|
|
|
261,664,962 |
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
44,843,382 |
|
|
$ |
200,996,490 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
1,200,673 |
|
|
$ |
371,999 |
|
Income tax paid |
|
$ |
4,829 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Convention from debt to equity interest of |
|
$ |
1,000,000 |
|
|
$ |
- |
|
Cashless exercise of warrants |
|
$ |
2,168,185 |
|
|
$ |
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231114757150/en/
Investor Relations Contact:
CENN@mzgroup.us
949-491-8235
Company Contact:
PR@cenntroauto.com
IR@cenntroauto.com
Source: