Financial Performance - Net revenues for the three months ended March 31, 2025, were approximately $2.14 million, a decrease of approximately $0.2 million or 8.5% from $2.34 million for the same period in 2024[168]. - The net loss from continuing operations for Q1 2025 was $5.36 million, compared to a net loss of $7.76 million in Q1 2024[168]. - Adjusted EBITDA from continuing operations for the three months ended March 31, 2025 was approximately $(3.96) million, an improvement from $(6.44) million in the same period of 2024[188]. - For the three months ended March 31, 2025, the company's net revenues from continuing operations were $2,143,058, a decrease of 8.5% compared to $2,342,918 for the same period in 2024[236]. Vehicle Sales and Revenue Breakdown - Vehicle sales accounted for $1.81 million or 84.5% of total net revenues in Q1 2025, compared to $1.52 million or 65.0% in Q1 2024[170]. - Vehicle sales for the three months ended March 31, 2025, were $1,837,054, down 27% from $2,514,777 in 2024[236]. - Spare-parts sales decreased significantly to $242,276 in 2025 from $828,785 in 2024, representing a decline of approximately 70.8%[236]. - The company's revenue from Asia increased to $1,174,031 in 2025, up 6.3% from $1,104,475 in 2024, while revenue from Europe and America decreased significantly[237]. Operating Expenses - Total operating expenses for Q1 2025 were $6.50 million, down from $8.04 million in Q1 2024, reflecting a reduction in research and development expenses[168]. - Selling and marketing expenses increased by approximately $0.2 million or 25.7% to approximately $0.8 million for the three months ended March 31, 2025, primarily due to increased freight costs[178]. - General and administrative expenses decreased by approximately $1.0 million or 16.6% to approximately $4.9 million for the three months ended March 31, 2025, attributed to reductions in various operational costs[179]. - Research and development expenses for Q1 2025 were $784,178, a significant decrease from $1.51 million in Q1 2024[168]. Cash Flow and Liquidity - Net cash used in operating activities was approximately $5.0 million for the three months ended March 31, 2025, compared to $8.9 million in the same period of 2024[191]. - As of March 31, 2025, the company had approximately $8.5 million in cash and cash equivalents, down from $20.2 million as of March 31, 2024[191]. - Net cash used in investing activities was approximately $0.5 million, primarily for the purchase of property, plant, and equipment[202]. - Net cash provided by financing activities was approximately $1.2 million, mainly from loans proceeds of approximately $1.0 million from related parties and $0.6 million from third parties, offset by $0.4 million repayment[203]. Contracts and Liabilities - Contractual liabilities for continuing operations rose to $5,102,793 as of March 31, 2025, compared to $4,121,305 as of December 31, 2024, indicating an increase of 23.8%[240]. - Accounts receivable for continuing operations decreased to $3,096,130 as of March 31, 2025, down from $3,281,865 as of December 31, 2024, a decline of 5.6%[240]. - The company recognized $374,384 in revenue from contractual liabilities for the three months ended March 31, 2025, compared to $890,646 in 2024, reflecting a decrease of 57.9%[239]. Future Outlook and Plans - The company plans to continue the rollout of new ECV models and green energy products in North America and Europe over the next twelve months[192]. - The company has invested over approximately $95.2 million in research and development activities since its inception in 2013, with plans to increase R&D expenditure in the long term[195]. - The company expects a decrease in provision for credit losses as sales shift more to FOB terms[161]. - General and administrative expenses are anticipated to decrease over the next two years due to efficiency improvements[160]. Leasing and Facilities - The total annual base rent for two operating lease agreements in Hangzhou, China is $186,866 for the term ending May 2023 and $167,521 for the term ending May 2024[204]. - The lease for a facility in Dusseldorf, Germany has a total annual base rent of approximately $373,630 for the lease term[205]. - A new operating lease agreement in Colombia commenced on May 1, 2023, with a monthly rent of approximately $11,224.92[206]. - The first annual base rent for a facility in Howell, New Jersey is $493,920, with a 3% annual increase[210]. - The monthly rent for a facility in Ontario, California is $115,200 for the first year, increasing to $134,767.71 in the fifth year[209]. Accounting and Financial Reporting - The company is currently assessing the impact of the recently issued ASU No. 2024-03 on its consolidated financial statements, which will improve disclosures about types of expenses[241]. - Shipping and handling costs are recorded as sales and marketing expenses rather than separate performance obligations[235]. - The company has not experienced material costs for quality assurance historically, leading to no accrual for these costs being deemed necessary[235]. - The company has not entered into any off-balance sheet financial guarantees or derivative contracts that are not reflected in the financial statements[214].

Vehicle Development and Production - As of December 31, 2024, the company has developed six series of commercial vehicle models and has begun production and delivery of these models into global markets[29] - The company has introduced the iChassis™ platform for autonomous driving applications and is developing hydrogen-powered heavy-duty vehicles to meet market demand[30] - The company has begun making its own battery packs and is preparing for battery cell production to enhance its supply chain capabilities[31] - The company has launched subsidiaries in various countries, including Colombia and Italy, to expand its global presence and market reach[63][64] - By the end of 2023, the company has launched seven ECV models available for commercial offering, including Metro MB, Avantier α and c, Logistar 100, Logistar 200, Logistar 260, Logistar 400, and Teemak[157] - In 2024, the company launched five new EV models: Avantier Ex, Avantier Commuter, Logistar 210, Logistar 300, and Logistar 450, enhancing its vehicle lineup and providing more options for customers[158] Market Trends and Projections - The global electric vehicle (EV) market was valued at approximately USD 561.3 billion in 2024 and is projected to reach approximately USD 1.58 trillion by 2030, representing a compound annual growth rate (CAGR) of 19% from 2023 to 2030[80] - The global electric commercial vehicle (ECV) market is projected to reach revenues of USD 623.3 billion in 2024, with a steady annual growth rate (CAGR 2024-2028) of 9.82%, reaching USD 906.7 billion by 2028[80] - The global hydrogen vehicle market is forecasted to grow at a CAGR of 31.94% from 2025 to 2032, reaching approximately USD 19.92 billion by 2032[86] Financial Performance - The company reported revenues of approximately $31.3 million for the year ended December 31, 2024, with significant losses from operations amounting to $55.3 million for the same period[203][205] - The revenue breakdown for 2024 shows the United States contributing $20,888,931 (66.7%), Europe $5,719,353 (18.3%), Asia $4,579,104 (14.6%), and others $110,004 (0.4%) compared to 2023[165] Research and Development - Approximately USD 94.4 million has been spent on R&D since 2013, developing ten vehicle models[116] - The company has invested approximately $94.4 million in research and development activities since inception, focusing on developing energy-efficient electric commercial vehicles (ECVs)[205] - As of December 31, 2024, the company holds 125 discovery patents, 10 design patents, and 86 innovation patents granted by the Chinese Patent Office, with additional applications pending[200] Manufacturing and Supply Chain - The company has established an asset-light, distributed manufacturing model, allowing for local assembly of vehicle kits to reduce capital investment[32] - The company has established a supply chain with over 500 suppliers, aiming to localize key components in North America and the European Union to support growth[192][193] - The new manufacturing facility in Changxing, acquired for approximately $19.5 million, is expected to support the production of 50,000 vehicles annually once fully operational[184] Distribution Strategy - The company has shifted its distribution strategy to combine wholly-owned EV Centers with local distribution channels to improve operational efficiencies and market share[33] - The company has shifted its distribution model, with channel partners accounting for approximately 2.1% of sales in 2024, down from 22.2% in 2023, following the acquisition of TME and the establishment of EV Centers[211] - The company has established a hybrid distribution model, opening eleven EV centers mainly in the US and EU throughout 2023[148] - The company is shifting towards local distribution channels to improve service quality and reduce operational costs[127] Regulatory and Market Challenges - The establishment and training of staff at EV Centers may require more time and resources than anticipated, potentially affecting performance and service quality[221] - The company does not provide charging solutions for channel partners or their customers, relying on third parties to ensure charging availability, which may impact vehicle attractiveness in certain markets[225] - The battery capacity of ECVs is expected to decline by up to 20% over six years under normal use conditions, which may negatively influence purchasing decisions[226] - The company anticipates challenges in penetrating new geographic markets, requiring substantial investment in time and resources to meet technical and regulatory requirements[224] Product Features and Certifications - The Metro® has passed N1 homologation requirements in Asia and has obtained EU Small Series Type Approval for an annual sales limitation of 1,500 units into the European Union market[96] - The LS300 has a payload of 3,307 lbs and a range of 270 miles, with EPA and CARB certifications received in 2024[105] - The company’s ECVs are designed with a lightweight chassis structure, reducing overall weight and increasing battery efficiency compared to competitors[191] - Hydrogen-powered trucks are expected to offer zero harmful emissions, higher energy density, and faster refueling times compared to battery-electric vehicles, making them suitable for long-haul transportation[161] Employee and Operational Insights - The company has a total of 260 full-time employees, with 64 in research and development and 58 in manufacturing[202] - The management team has extensive experience in the automotive and technology industries, focusing on developing high-quality, light- and medium-duty ECVs[198]

Financial 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].

Financial Performance - Net revenues for the six months ended June 30, 2024, were $11,712,491, compared to $7,708,064 for the same period in 2023, representing a 52% increase [123]. - Net revenues for the six months ended June 30, 2024 were approximately $11.7 million, an increase of approximately $4.0 million or 52.0% from approximately $7.7 million for the same period in 2023 [125]. - Vehicle sales contributed $9.6 million to net revenues for the six months ended June 30, 2024, representing an increase of approximately $2.4 million due to improved sales volume and average selling price from approximately $19,797 to $22,882 [125]. - The company sold 420 ECVs for the six months ended June 30, 2024, compared to 364 ECVs for the same period in 2023, with significant sales in the U.S. market increasing from nil to 65 ECVs [127]. - Revenue from Europe reached $5,763,387, a substantial increase from $96,702 in the prior year, while revenue from Asia decreased to $3,654,430 from $5,531,486 [198]. Expenses and Losses - Total operating expenses for the six months ended June 30, 2024, were $19,450,046, a decrease from $24,968,200 in the same period of 2023, reflecting a 22% reduction [123]. - Loss from operations for the six months ended June 30, 2024, was $18,210,905, compared to a loss of $23,626,211 for the same period in 2023, indicating a 23% improvement [123]. - Net loss attributable to shareholders of the Company for the six months ended June 30, 2024, was $18,412,978, compared to $25,032,433 for the same period in 2023, a reduction of 26% [123]. - The company reported a net loss of approximately $(18.42) million for the six months ended June 30, 2024, compared to $(25.19) million for the same period in 2023 [156]. - The net loss for the six months ended June 30, 2024 was approximately $18.4 million, adjusted for non-cash items totaling approximately $7.1 million [167]. Research and Development - Research and development expenses for the six months ended June 30, 2024, were $2,815,469, down from $3,712,989 in the same period of 2023, a reduction of 24% [123]. - The Company continues to invest in research and development for new ECV models and related technologies, indicating a commitment to innovation [114]. - The company plans to increase research and development expenditures over the long term, having spent approximately $92.8 million since inception in 2013 through June 30, 2024 [162]. - Research and development expenses for the six months ended June 30, 2024, were approximately $2.8 million, a decrease of approximately 24.2% from $3.7 million for the same period in 2023 [142]. Cash Flow and Financial Position - As of June 30, 2024, the company had approximately $16.2 million in cash and cash equivalents, compared to $29.4 million as of December 31, 2023 [157]. - Working capital as of June 30, 2024, was approximately $60.6 million, a decrease of approximately $15.0 million from $75.6 million as of December 31, 2023 [163]. - Net cash used in operating activities for the six months ended June 30, 2024 was approximately $12.7 million, a decrease from $35.6 million for the same period in 2023 [166]. - Cash and cash equivalents at the end of the period were $16.4 million, down from $60.5 million at the end of June 30, 2023 [164]. - The company experienced a net decrease in cash of approximately $13.1 million for the six months ended June 30, 2024, compared to a decrease of $93.6 million in the same period of 2023 [164]. Operating Expenses - Selling and marketing expenses decreased significantly to $2,623,441 for the six months ended June 30, 2024, from $4,611,734 in the same period of 2023, a 43% decrease [123]. - General and administrative expenses for the six months ended June 30, 2024 were approximately $14.0 million, a decrease of approximately $2.6 million or 15.8% from approximately $16.6 million for the same period in 2023 [139]. - The Company anticipates that selling and marketing expenses will not increase in 2024 as it shifts strategy towards strengthening existing market developments [115]. - General and administrative expenses are expected to remain stable in 2024 as the Company focuses on improving operational efficiency [116]. Revenue Recognition and Accounting Policies - The Company utilizes a five-step analysis for revenue recognition, ensuring that revenue reflects the consideration expected to be received [195]. - Significant judgment is required to estimate return allowances, which could materially impact net revenues recognized [196]. - The Company has adopted the fair value option for certain financial instruments, including convertible promissory notes and currency-cross swaps [190]. - The current economic environment has increased uncertainty in estimates and assumptions used in financial reporting [185]. - The Company recognized $923,815 in revenue from contract liabilities for the six months ended June 30, 2024, compared to $479,499 in the same period of 2023 [199]. Other Financial Information - Net interest expense for the six months ended June 30, 2024, was approximately $0.02 million, representing a decrease of approximately 53.8% compared to $0.05 million in the same period in 2023 [143]. - Other expense, net for the six months ended June 30, 2024, was approximately $0.6 million, a decrease of approximately 25% from $0.8 million for the same period in 2023 [144]. - Contract liabilities as of June 30, 2024, were $5,476,006, compared to $3,394,044 as of June 30, 2023, indicating a growing obligation to deliver goods or services [201]. - Accounts receivable increased to $7,871,086 from $6,530,801, reflecting higher revenue recognized but not yet collected [201]. - A gain in the change in fair value of equity securities for the three months ended June 30, 2024, was approximately $0.3 million, an increase of approximately 200% compared to $0.1 million for the same period in 2023 [149].

Financial Performance - Net revenues for the three months ended March 31, 2024, were $3,391,999, a decrease of 2.3% from $3,470,544 in the same period of 2023[125] - Vehicle sales accounted for $2,514,777 (74.2%) of total net revenues, down from $2,840,963 (81.9%) in the prior year[127] - Spare-part sales increased to $828,785 (24.4%) from $598,036 (17.2%) year-over-year, indicating a shift in revenue sources[127] - The gross profit for the three months ended March 31, 2024, was $14,271, significantly lower than $194,744 in the same period of 2023[125] - For the three months ended March 31, 2024, vehicle sales accounted for $2,355,403, representing 69.7% of total cost of goods sold, a decrease from $2,794,762 or 85.3% in the same period of 2023[130] - Gross profit for the three months ended March 31, 2024 was approximately $0.01 million, a decrease of approximately $0.18 million from $0.19 million in the same period of 2023, resulting in a gross margin of 0.4% compared to 5.6% in 2023[130] - The company reported a loss from operations of $9,391,518 for the three months ended March 31, 2024, compared to a loss of $10,602,424 in the same period of 2023[125] - The net loss for Q1 2024 was approximately $9.2 million, adjusted for non-cash items totaling approximately $3.0 million, including foreign currency exchange losses and share-based compensation[166] Operating Expenses - Total operating expenses decreased to $9,405,789 from $10,797,168, reflecting a reduction in general and administrative expenses[125] - General and administrative expenses for the three months ended March 31, 2024 were approximately $6.4 million, a decrease of approximately $1.0 million or 13.3% from $7.3 million in the same period of 2023[132] - Selling and marketing expenses for the three months ended March 31, 2024 were approximately $1.3 million, a decrease of approximately $0.6 million or 29.6% from $1.9 million in the same period of 2023[143] Research and Development - Research and development expenses rose to $1,727,830, compared to $1,569,919 in the previous year, as the company continues to invest in new ECV models and technologies[125] - The company expects research and development expenses to increase as it invests in new materials, vehicle management systems, and digital control capabilities[94] - The company has invested over approximately $91.7 million in research and development since its inception in 2013, with plans to increase R&D expenditure in the long term[185] Cash Flow and Liquidity - As of March 31, 2024, the company had approximately $20.3 million in cash and cash equivalents, down from approximately $91.8 million as of March 31, 2022[146] - Net cash used in operating activities for the three months ended March 31, 2024 was approximately $8.9 million, compared to $17.4 million in the same period of 2023[146] - Net cash used in operating activities for Q1 2024 was approximately $8.9 million, compared to $17.4 million for Q1 2023, indicating a significant reduction in cash outflow[165] - The company plans to fund future operations through cash on hand, cash flow from operations, lines of credit, and additional equity and debt financings[163] Revenue Recognition and Accounting Estimates - The company recognizes revenue primarily through sales of light-duty ECVs, with significant judgment required to estimate return allowances based on historical experience[181] - For the three months ended March 31, 2024, the Company recognized revenue of $890,646 from contractual liabilities, compared to $98,818 for the same period in 2023[220] - The Company recognizes revenue when goods or services are transferred to customers, following a five-step analysis to determine revenue recognition[200] - Contract liabilities represent the Company's obligation to provide additional goods or services for which it has received consideration, remaining a liability until fulfilled[220] - The Company has significant accounting estimates that include provisions for doubtful accounts and impairment losses for long-lived assets, which may be affected by the current economic environment[199] - The current economic environment has increased uncertainty in the estimates and assumptions used in financial reporting[199] Legal Proceedings - The Company is involved in ongoing legal proceedings, including a demand for arbitration seeking $1,126,640 for outstanding invoices and a lawsuit claiming $19 million in damages related to stock options[204][206] - The Company has filed a lawsuit against MHP Americas, Inc. seeking $512,226 for breach of contract related to the implementation of SAP S/4HANA[207] Strategic Plans - The company plans to continue the rollout of new ECV models and green energy-related products in North America and Europe over the next twelve months[147] - The company aims to regionalize manufacturing and supply chains for certain components of ECVs in the markets where they are sold, enhancing after-sales market services[150] - The company completed the acquisition of Cenntro Elecautomotiv, S.L. in Spain on May 19, 2023, expanding its operational footprint in Europe[194] Other Financial Information - Working capital as of March 31, 2024, was approximately $67.5 million, down from $75.6 million as of December 31, 2023, reflecting an $8.1 million decrease[186] - The company signed multiple non-cancellable operating lease agreements, including a facility in Jacksonville, Florida, with an annual base rent of approximately $695,000 for the first three years[168] - Net cash provided by investing activities for Q1 2024 was approximately $0.3 million, primarily from proceeds of equity securities[189] - The company has not entered into any off-balance sheet financial guarantees or derivative contracts that are not reflected in its financial statements[176] - The Company has not disclosed any sales of unregistered equity securities that were not previously reported[209] - The Company is subject to various risks that could materially affect its business and financial condition, as outlined in the 2023 Form 10-K[208] - Shipping and handling costs for product shipments are recorded as sales and marketing expenses rather than separate performance obligations[219]

Financial Performance - The company's revenues for the year ended December 31, 2023, were approximately $22.1 million[165] - The company incurred losses from operations of approximately $51.9 million for the year ended December 31, 2023, compared to $54.7 million in 2022, indicating a reduction in losses[166] - In 2023, the total material cash transfer within the organization was approximately USD 23 million, including $15 million loan to Cenntro Electric Group Inc. and $8 million loan to Cenntro Automotive Corporation[248] - The company does not intend to pay dividends for the foreseeable future, relying on stock price appreciation for returns[295] - As of December 31, 2023, Cenntro had 191 holders of its Common Stock[338] Research and Development - The company has invested approximately $8.5 million in research and development activities since inception through December 31, 2023, and plans to continue significant investments in this area[166] - Cenntro has developed the iChassis™, a programmable "smart" chassis for remote-controlled or autonomous driving applications[235] - The company has developed eight vehicle models and is focusing on modular designs to allow for local assembly, which requires less capital investment[263] Market and Industry Trends - The last-mile delivery market in the U.S. and EU is expanding rapidly, driven by e-commerce growth and a focus on low-emission logistics, which is expected to increase demand for electric commercial vehicles[185] - 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 (CAGR) of 18.2% from 2021 to 2030[249] - The market for alternative fuel vehicles, including ECVs, is rapidly evolving, and any slower-than-expected market development could harm the company's financial condition[340] Manufacturing and Distribution - The company has established local assembly facilities in Jacksonville, Florida, and Freehold, New Jersey, with plans for an additional facility in Ontario, California[213] - The acquisition of CAE (formerly TME) in 2023 is expected to expand local assembly capacity in the European Union for ECV models[213] - Cenntro has established seven manufacturing and/or assembly facilities across the United States, China, Germany, and Mexico as of the date of this report[264] - Cenntro added six EV Centers to its global distribution system in 2022, with additional centers opened in the United States in 2023, totaling eleven EV Centers[270] - The company is shifting its distribution strategy from relying on third-party partners to a model combining wholly-owned EV Centers with local dealers[236] Regulatory and Compliance Risks - The company is subject to compliance with various regulations in North America, Europe, and Asia, which may limit its ability to sell certain ECV models[321] - Compliance with environmental regulations is crucial, and failure to do so could result in significant fines or operational suspensions[325] - The company is subject to various legal and regulatory requirements across different jurisdictions, which may affect its operations and sales[347] - The company must comply with the General Data Protection Regulation (GDPR) and other data protection laws, which may require additional resources[359] Supply Chain and Operational Challenges - The company’s business is subject to risks related to supply chain disruptions, which could adversely affect operations and financial results[178] - Shipping costs have increased significantly due to geopolitical factors, impacting vehicle production and gross profit margins[300] - The company has faced disruptions in ECV deliveries due to limited shipping capacity and increased shipping costs from China to North America and Europe[300] - The company anticipates significant increases in operating costs as it develops additional ECVs and establishes new partnerships and facilities[306] - The company faces risks related to fluctuating raw material costs, particularly for lithium, nickel, and cobalt used in lithium-ion cells[343] Technology and Innovation - The Logistar™ 400 has received certification as a zero-emission vehicle from both the California Air Resources Board and the EPA, allowing it to be sold in all U.S. states[195] - The Logistar™ 200, designed for the EU market, is available in three models and is specialized for last-mile delivery, city delivery, and city services, with homologation completed in January 2022[255] - The LMH864 hydrogen fuel-cell semi-tractor has a total weight of 25 tons and is designed for short- and long-haul applications, with operational range and refueling time comparable to diesel trucks[257] - Cenntro's distributed manufacturing model allows for lower capital investment compared to traditional automotive companies[236] Financial and Market Risks - Cenntro's business is significantly dependent on government subsidies and economic incentives for electric commercial vehicles (ECVs), and any reduction in these could adversely affect competitiveness[314] - The company has experienced price increases from component suppliers due to inflation, which may require raising ECV prices and negatively impact demand[316] - The company may seek equity or debt financing to meet capital requirements, which could be subject to unfavorable market conditions[309] Cybersecurity and Internal Controls - The company is exposed to cybersecurity risks, including ransomware and phishing attacks, which could adversely affect its financial condition[363] - Cenntro identified a material weakness in its internal control over financial reporting, which has not yet been remediated despite improvements in controls and supervision[313] - The company has implemented safety procedures for handling lithium-ion battery cells, but incidents could disrupt operations and harm brand reputation[312] Intellectual Property - The company relies on a combination of patents and trade secrets to protect its intellectual property, which may be vulnerable to infringement[348] - The company may face challenges in enforcing its intellectual property rights, potentially leading to a loss of competitive advantage[348]

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will redomicile from Australia to the United States ("U.S.", the “Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc., a corporation incorporated in accordance with the laws of the state of Nevada ( ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will re-domicile from Australia to the United States ("U.S.", the “Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc., a corporation incorporated in accordance with the laws of the state of Nevada ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, refers to the proposed scheme of arrangement in relation to which Cenntro will re-domicile from Australia to the United States ("U.S.", the “Scheme”), and under which Cenntro will become a subsidiary of Cenntro Inc., a corporation incorporated in accordance with the laws of the state of Nevada ...

FREEHOLD, N.J.--(BUSINESS WIRE)--Cenntro Electric Group Limited (NASDAQ: CENN) (“Cenntro”, or the “Company”), a leading electric vehicle technology company with advanced, market-validated electric commercial vehicles, today announced that Cenntro shareholders have voted in favor of the proposed scheme of arrangement in which Cenntro will redomicile from Australia to the United States (“Scheme”), and under which Cenntro will become a wholly owned subsidiary of Cenntro Inc. (“HoldCo”), a United States ("U.S.” ...