Q4 2023 Net Revenue Increased 376% to
Q4 Number of Vehicles Sold Increased by 148% to 1,135 Vehicles
Q4 Gross Profit Margin Increased 2,500 bps to 2.3% from a loss of -22.7%
Fourth Quarter 2023 Financial and Operating Highlights
-
Fourth Quarter 2023 Net revenue of
$8.6 million increased 376% year over year. - Sales volume increased by 827% year over year and 58.7% sequentially quarter over quarter to 473 vehicles.
-
Adjusted EBITDA for the quarter is a loss of
$13.7 million compared to a loss of$18.3 million for Q4 2022. -
Full Year 2023 Net revenue of
$22.1 million increased 147% year over year. - Sales volume increased by 148% year over year to 1,135 vehicles.
-
Adjusted EBITDA for the full year 2023 is a loss of
$47.6 million compared to a loss of$43.2 million for 2022. -
Delivered more than 250 autonomous delivery vehicles in
China toZelos (Suzhou) Technology Co., Ltd , which sells and operates autonomous driving vehicles for urban delivery throughout various cities inChina . -
LS400 received approval from the
California Air Resources Board (“CARB”) to participate in California’s Hybrid andZero-Emission Truck and Bus Voucher Incentive Project (“HVIP”) in the state ofCalifornia , providing a$60,000 point-of-sale voucher for the Company’s customers. -
Received a Certificate of Compliance for Cybersecurity Management System (
UN Regulation number: R155) and a Certificate of Compliance for Software Update Management System (UN Regulation number: R156). Both certifications are required for vehicle sales in theEuropean Union beginning in the second quarter of 2024. -
In
February 2024 , Cenntro redomiciled fromAustralia tothe United States of America to provide more opportunities to pursue future corporate development and strategic growth initiatives.
“Throughout the quarter we continued to benefit from government incentives in both
“In California, with the LS400’s approval now for the HVIP, Commercial Clean Vehicle Credit,
“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.”
“Based on these developments, we are optimistic that our sales momentum will continue to build in 2024 and beyond. With our recent re-domicile to the
“We continue to benefit from the transition to an in-country direct sales model and our launch of new models, particularly the LS260 as mentioned by Peter. Also, our overall vehicles gross margin for the year ended
“As of
Fourth 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
Adjusted EBITDA
Adjusted EBITDA was approximately
Full Year 2023 Financial Results
Net Revenue
Net revenue was
Gross Profit
Gross profit for the year ended
Operating Expenses
Total operating expenses were approximately
Selling and marketing expenses for the year ended
General and administrative expenses for the year ended
Research and development expenses for the year 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 |
||||||||
|
Year Ended |
|||||||
|
2023 |
2022 |
||||||
|
(Unaudited) |
|||||||
Net loss |
|
$ |
(54,360,755 |
) |
|
$ |
(112,145,263 |
) |
Interest expense, net |
|
|
(402,414 |
) |
|
|
844,231 |
|
Income tax expense |
|
|
24,919 |
|
|
|
— |
|
Depreciation and amortization |
|
|
1,570,313 |
|
|
|
953,872 |
|
Share-based compensation expense |
|
|
5,230,273 |
|
|
|
4,031,629 |
|
Expenses related to TME Acquisition |
|
|
— |
|
|
|
348,987 |
|
Expenses related to one-off payment inherited from the original |
|
|
— |
|
|
|
8,299,178 |
|
Impairment of goodwill |
|
|
— |
|
|
|
11,111,886 |
|
Convertible bond issuance cost |
|
|
— |
|
|
|
5,589,336 |
|
Loss on redemption of convertible promissory notes |
|
|
(12,507 |
) |
|
|
7,435 |
|
Loss on exercise of warrants |
|
|
228,903 |
|
|
|
— |
|
Change in fair value of convertible promissory notes and derivative liability |
|
|
(75,341 |
) |
|
|
37,774,928 |
|
Loss from acquisition of Antric |
|
|
136,302 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(47,575,571 |
) |
|
$ |
(43,183,781 |
) |
Represents a non-GAAP financial measure.
About Cenntro
Cenntro (NASDAQ: CENN) is a leading maker and provider of electric commercial vehicles (“ECVs”). Cenntro's purpose-built ECVs are designed to serve a variety of commercial applications inclusive of its line of class 1 to class 4 trucks. Cenntro is building a globalized supply-chain, as well as the manufacturing, distribution, and service capabilities for its innovative and reliable products. Cenntro continues to evolve its products capabilities through advanced battery, powertrain, and smart driving technologies. For more information, please visit Cenntro's website at: www.cenntroauto.com.
Forward-Looking Statements
This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the
CENNTRO INC.
|
||||||||||
|
|
|
|
2023 |
|
|
2022 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
|
$ |
29,375,727 |
|
|
$ |
153,966,777 |
|
Restricted cash |
|
|
|
|
196,170 |
|
|
|
130,024 |
|
Short-term investment |
|
|
|
|
4,236,588 |
|
|
|
- |
|
Accounts receivable, net |
|
|
|
|
6,530,801 |
|
|
|
565,398 |
|
Inventories |
|
|
|
|
43,909,564 |
|
|
|
31,843,371 |
|
Prepayment and other current assets |
|
|
|
|
20,391,150 |
|
|
|
16,138,330 |
|
Amounts due from related parties - current |
|
|
|
|
287,439 |
|
|
|
366,936 |
|
Total current assets |
|
|
|
|
104,927,439 |
|
|
|
203,010,836 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
|
Long-term investments |
|
|
|
|
4,685,984 |
|
|
|
5,325,741 |
|
Investment in equity securities |
|
|
|
|
26,158,474 |
|
|
|
29,759,195 |
|
Property, plant and equipment, net |
|
|
|
|
20,401,521 |
|
|
|
14,962,591 |
|
|
|
|
|
|
223,494 |
|
|
|
- |
|
Intangible assets, net |
|
|
|
|
6,873,781 |
|
|
|
4,563,792 |
|
Right-of-use assets |
|
|
|
|
20,039,625 |
|
|
|
8,187,149 |
|
Other non-current assets, net |
|
|
|
|
2,227,672 |
|
|
|
2,039,012 |
|
Total non-current assets |
|
|
|
|
80,610,551 |
|
|
|
64,837,480 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
$ |
185,537,990 |
|
|
$ |
267,848,316 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
$ |
6,797,852 |
|
|
$ |
3,383,021 |
|
Accrued expenses and other current liabilities |
|
|
|
|
4,263,887 |
|
|
|
5,048,641 |
|
Contractual liabilities |
|
|
|
3,394,044 |
|
|
|
2,388,480 |
|
|
Operating lease liabilities, current |
|
|
|
|
4,741,599 |
|
|
|
1,313,334 |
|
Convertible promissory notes |
|
|
|
|
9,956,000 |
|
|
|
57,372,827 |
|
Contingent liabilities |
|
|
|
|
26,669 |
|
|
|
- |
|
Deferred government grant, current |
|
|
|
|
108,717 |
|
|
|
26,533 |
|
Amounts due to related parties |
|
|
|
|
10,468 |
|
|
|
716,372 |
|
Total current liabilities |
|
|
|
|
29,299,236 |
|
|
|
70,249,208 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
|
Contingent liabilities non-current |
|
|
|
|
230,063 |
|
|
|
- |
|
Deferred tax liabilities |
|
|
|
|
228,086 |
|
|
|
- |
|
Deferred government grant, non-current |
|
|
|
|
1,929,733 |
|
|
|
497,484 |
|
Derivative liability - investor warrant |
|
|
|
|
12,189,508 |
|
|
|
14,334,104 |
|
Derivative liability - placement agent warrant |
|
|
|
|
3,456,578 |
|
|
|
3,456,404 |
|
Operating lease liabilities, non-current |
|
|
|
|
16,339,619 |
|
|
|
7,421,582 |
|
Total non-current liabilities |
|
|
|
|
34,373,587 |
|
|
|
25,709,574 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities |
|
|
|
$ |
63,672,823 |
|
|
$ |
95,958,782 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
Ordinary shares (No par value; 30,828,778 and 30,084,200 shares issued and outstanding as of |
|
|
|
|
- |
|
|
|
- |
|
Additional paid in capital |
|
|
|
|
402,337,393 |
|
|
|
397,497,817 |
|
Accumulated deficit |
|
|
|
|
(274,023,501 |
) |
|
|
(219,824,176 |
) |
Accumulated other comprehensive loss |
|
|
|
|
(6,444,485 |
) |
|
|
(5,306,972 |
) |
Total equity attributable to shareholders |
|
|
|
|
121,869,407 |
|
|
|
172,366,669 |
|
Non-controlling interests |
|
|
|
|
(4,240 |
) |
|
|
(477,135 |
) |
Total Equity |
|
|
|
$ |
121,865,167 |
|
|
$ |
171,889,534 |
|
Total Liabilities and Equity |
|
|
|
$ |
185,537,990 |
|
|
$ |
267,848,316 |
|
CENNTRO INC.
|
||||||||||||||
|
|
|
|
For the Years Ended |
||||||||||
|
|
|
|
2023 |
2022 |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||
Net revenues |
|
|
|
$ |
22,079,905 |
|
|
$ |
8,941,835 |
|
||||
Cost of goods sold |
|
|
|
|
|
(19,821,645 |
) |
|
|
(9,455,805 |
) |
|||
Gross profit (loss) |
|
|
|
|
|
2,258,260 |
|
|
|
(513,970 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|||
Selling and marketing expenses |
|
|
|
|
|
(7,868,773 |
) |
|
|
(6,525,255 |
) |
|||
General and administrative expenses |
|
|
|
|
|
(35,768,786 |
) |
|
|
(32,822,709 |
) |
|||
Research and development expenses |
|
|
|
|
|
(8,469,241 |
) |
|
|
(6,362,770 |
) |
|||
Provision for doubtful accounts |
|
|
|
|
|
- |
|
|
|
(5,986,308 |
) |
|||
Impairment loss of right-of-use assets |
|
|
|
|
|
- |
|
|
|
(371,695 |
) |
|||
Impairment loss of intangible assets |
|
|
|
|
|
- |
|
|
|
(2,995,440 |
) |
|||
Reverse of deferred tax liabilities |
|
|
|
|
|
- |
|
|
|
898,632 |
|
|||
Impairment loss of property, plant and equipment |
|
|
|
|
|
(431,319 |
) |
|
|
(550,402 |
) |
|||
Total operating expenses |
|
|
|
|
|
(52,538,119 |
) |
|
|
(54,715,947 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loss from operations |
|
|
|
|
|
(50,279,859 |
) |
|
|
(55,229,917 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
OTHER EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|||
Interest (income)/expense, net |
|
|
|
|
|
402,414 |
|
|
|
(844,231 |
) |
|||
Gain (loss) on redemption of convertible promissory notes |
|
|
|
|
|
12,507 |
|
|
|
(7,435 |
) |
|||
(Loss) income from long-term investments |
|
|
|
|
|
(1,377,760 |
) |
|
|
(12,651 |
) |
|||
Change in fair value of convertible promissory notes and derivative liability |
|
|
|
|
|
75,341 |
|
|
|
(37,774,928 |
) |
|||
Change in fair value of equity securities |
|
|
|
|
|
(2,600,721 |
) |
|
|
(240,805 |
) |
|||
Convertible bond issuance cost |
|
|
|
|
|
- |
|
|
|
(5,589,336 |
) |
|||
Foreign currency exchange loss, net |
|
|
|
|
|
(848,781 |
) |
|
|
(409,207 |
) |
|||
Impairment loss of goodwill |
|
|
|
|
|
- |
|
|
|
(11,111,886 |
) |
|||
Loss from acquisition of Antric |
|
|
|
|
|
(136,302 |
) |
|
|
- |
|
|||
Loss on exercise of warrants |
|
|
|
|
|
(228,903 |
) |
|
|
- |
|
|||
Gain from cross-currency swaps |
|
|
|
|
|
8,664 |
|
|
|
- |
|
|||
Other income/ (expense), net |
|
|
|
|
|
621,633 |
|
|
|
(924,867 |
) |
|||
Loss before income taxes |
|
|
|
|
|
(54,351,767 |
) |
|
|
(112,145,263 |
) |
|||
Income tax expense |
|
|
|
|
|
(8,988 |
) |
|
|
- |
|
|||
Net loss |
|
|
|
|
|
(54,360,755 |
) |
|
|
(112,145,263 |
) |
|||
Less: net loss attributable to non-controlling interests |
|
|
|
|
|
(161,430 |
) |
|
|
(2,057,022 |
) |
|||
Net loss attributable to the Company’s shareholders |
|
|
|
|
$ |
(54,199,325 |
) |
|
$ |
(110,088,241 |
) |
|||
OTHER COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
|
|
|
|
|||
Foreign currency translation adjustment |
|
|
|
|
|
(1,162,080 |
) |
|
|
(3,889,706 |
) |
|||
Total comprehensive loss |
|
|
|
|
|
(55,522,835 |
) |
|
|
(116,034,969 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Less: total comprehensive loss attributable to non-controlling interests |
|
|
|
|
|
(185,997 |
) |
|
|
(2,032,455 |
) |
|||
Total comprehensive loss to the Company’s shareholders |
|
|
|
|
$ |
(55,336,838 |
) |
|
$ |
(114,002,514 |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted average number of shares outstanding, basic and diluted * |
|
|
|
|
|
30,424,686 |
|
|
|
26,332,324 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Loss per share, basic and diluted |
|
|
|
|
|
(1.78 |
) |
|
|
(4.18 |
) |
CENNTRO INC.
|
||||||||
|
|
For the Year Ended |
||||||
|
|
2023 |
|
2022 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(54,360,755 |
) |
|
$ |
(112,145,263 |
) |
Adjustments to reconcile net loss to net cash used in operating activities |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,670,980 |
|
|
|
953,872 |
|
Amortization and interest of operating lease right-of-use asset |
|
|
4,495,244 |
|
|
|
1,616,853 |
|
Impairment of property, plant and equipment |
|
|
431,319 |
|
|
|
550,402 |
|
Impairment of intangible assets |
|
|
- |
|
|
|
2,995,440 |
|
Reversal of deferred tax liabilities |
|
|
- |
|
|
|
(898,632 |
) |
Impairment of right-of-use assets |
|
|
- |
|
|
|
371,695 |
|
Impairment of goodwill |
|
|
- |
|
|
|
11,111,886 |
|
Written-down of inventories |
|
|
658,622 |
|
|
|
2,155,400 |
|
Provision for doubtful accounts |
|
|
- |
|
|
|
5,986,308 |
|
Convertible promissory notes issuance costs |
|
|
- |
|
|
|
5,589,336 |
|
(Gain) Loss on redemption of convertible promissory notes |
|
|
(12,507 |
) |
|
|
7,435 |
|
Loss on exercise of warrants |
|
|
228,903 |
|
|
|
- |
|
Changes in fair value of convertible promissory notes and derivative liabilities |
|
|
(75,341 |
) |
|
|
37,774,928 |
|
Changes in fair value of equity securities |
|
|
2,600,721 |
|
|
|
240,805 |
|
Foreign currency exchange loss, net |
|
|
1,527,077 |
|
|
|
409,207 |
|
Share-based compensation expense |
|
|
5,230,273 |
|
|
|
4,031,629 |
|
Loss (Gain) from disposal of plant and equipment |
|
|
55,391 |
|
|
|
(10,334 |
) |
Loss from long-term investments |
|
|
1,377,760 |
|
|
|
12,651 |
|
Income from short-term investment |
|
|
(22,918 |
) |
|
|
- |
|
Loss from acquisition of |
|
|
136,302 |
|
|
|
- |
|
Deferred income taxes |
|
|
(15,930 |
) |
|
|
- |
|
|
|
|
|
|
|
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(5,871,181 |
) |
|
|
233,570 |
|
Inventories |
|
|
(12,178,463 |
) |
|
|
(20,483,127 |
) |
Prepayment and other assets |
|
|
(4,624,170 |
) |
|
|
(6,753,851 |
) |
Amounts due from/to related parties |
|
|
11,799 |
|
|
|
(1,190,573 |
) |
Accounts payable |
|
|
3,100,835 |
|
|
|
(2,144,725 |
) |
Accrued expense and other current liabilities |
|
|
(1,325,504 |
) |
|
|
1,358,858 |
|
Contractual liabilities |
|
|
2,516,789 |
|
|
|
633,825 |
|
Long-term payable |
|
|
- |
|
|
|
(700,000 |
) |
Operating lease assets and liabilities |
|
|
(4,012,410 |
) |
|
|
(1,108,721 |
) |
Net cash used in operating activities |
|
|
(58,457,164 |
) |
|
|
(69,401,126 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchase of equity investment |
|
|
(880,932 |
) |
|
|
(4,256,276 |
) |
Purchase of convertible note from |
|
|
(600,000 |
) |
|
|
- |
|
Purchase of wealth management products purchased from banks |
|
|
(4,236,740 |
) |
|
|
- |
|
Purchase of land, plant and equipment |
|
|
(7,636,020 |
) |
|
|
(3,285,072 |
) |
Purchase of land use rights and property |
|
|
(1,114,943 |
) |
|
|
(16,456,355 |
) |
Acquisition of CAE’s equity interests |
|
|
(1,924,557 |
) |
|
|
(3,612,717 |
) |
Payment of expense for acquisition of CAE’s equity interests |
|
|
- |
|
|
|
(348,987 |
) |
Cash acquired from acquisition of CAE |
|
|
- |
|
|
|
1,118,700 |
|
Acquisition of Antric Gmbh’s equity interests |
|
|
(1 |
) |
|
|
- |
|
Cash acquired from acquisition of |
|
|
1,376 |
|
|
|
- |
|
Purchase of equity securities |
|
|
- |
|
|
|
(30,000,000 |
) |
Proceeds from disposal of property, plant and equipment |
|
|
3,661 |
|
|
|
309 |
|
Loans provided to third parties |
|
|
- |
|
|
|
(1,323,671 |
) |
Repayment of loans from related parties |
|
|
- |
|
|
|
1,280,672 |
|
Net cash (used in) provided by investing activities |
|
|
(16,388,156 |
) |
|
|
(56,883,397 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Repayment of loans to related parties |
|
|
- |
|
|
|
(1,726,614 |
) |
Repayment of loans to third parties |
|
|
- |
|
|
|
(1,113,692 |
) |
Repayments of bank loans |
|
|
(601,476 |
) |
|
|
- |
|
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 |
) |
|
|
(3,727,500 |
) |
Proceed from exercise of share-based awards |
|
|
- |
|
|
|
14,386 |
|
Payment of expense for the reverse recapitalization |
|
|
- |
|
|
|
(904,843 |
) |
Net cash provided by financing activities |
|
|
(48,135,595 |
) |
|
|
19,452,636 |
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(1,543,989 |
) |
|
|
(736,274 |
) |
|
|
|
|
|
|
|
|
|
Net (decrease)increase in cash, cash equivalents and restricted cash |
|
|
(124,524,904 |
) |
|
|
(107,568,161 |
) |
Cash, cash equivalents and restricted cash at beginning of year |
|
|
154,096,801 |
|
|
|
261,664,962 |
|
Cash, cash equivalents and restricted cash at end of year |
|
$ |
29,571,897 |
|
|
$ |
154,096,801 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Interest paid |
|
$ |
1,468,397 |
|
|
$ |
369,410 |
|
Income tax paid |
|
$ |
4,797 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Cashless exercise of warrants |
|
$ |
2,168,185 |
|
|
$ |
18,549,864 |
|
Non-cash capital injection to Robostreet by i-Chassis |
|
$ |
250,000 |
|
|
$ |
- |
|
Convention from debt to equity interest of |
|
$ |
1,000,000 |
|
|
$ |
- |
|
Non-cash recognition of new leases |
|
$ |
14,947,878 |
|
|
$ |
- |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240401614612/en/
Investor Relations Contact:
CENN@mzgroup.us
949-491-8235
Company Contact:
PR@cenntroauto.com
IR@cenntroauto.com
Source: