| Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
| | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
| |
| (Exact name of registrant as specified in its charter) |
| | | |
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification Number) |
| Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||
| | | The |
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| | ☒ | Smaller reporting company | |
| Emerging growth company |
|
1
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| 1 | |
| 26 | |
| 47 |
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| 47 |
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| 48 |
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| 48 |
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| 49 |
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| 49 |
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| 49 |
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| 49 |
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| 49 |
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| 49 | |
| 50 |
| ● |
general economic and business conditions, including changes in interest rates;
|
| ● |
prices of other EVs, costs associated with manufacturing EVs and other economic conditions;
|
| ● |
the effect of an outbreak of disease or similar public health threat, or natural phenomena on the Company’s business;
|
| ● |
the impact of political unrest, natural disasters or other crises, terrorist acts, acts of war and/or military operations, and our ability to maintain or broaden our business relationships and develop new
relationships with strategic alliances, suppliers, customers, distributors or otherwise;
|
| ● |
breaches in data security, failure of information security systems, cyber-attacks or other security or privacy-related incidents affecting us or our suppliers;
|
| ● |
the ability of our information technology systems or information security systems to operate effectively;
|
| ● |
actions by government authorities, including changes in government regulation and ongoing and anticipated changes in the United States political environment, including those resulting from the current
presidential administration, and its control of Congress;
|
| ● |
the implementation of changes to the existing tariff regime by the current presidential administration and measures taken in response to such tariffs by foreign governments;
|
| ● |
risks associated with obtaining orders and executing upon such orders or the unavailability, reduction, elimination and adverse application of government subsidies and incentives or any challenge to or failure
by the federal government, states or other governmental entities to adopt or enforce regulations such as the California Air Resource Board’s Advanced Clean Fleet regulation;
|
| ● |
changes in attitude toward environmental, social, and governance matters among regulators, investors, and parties with which we do business
|
| ● |
uncertainties associated with legal proceedings;
|
| ● |
changes in the size of the EV market;
|
| ● |
future decisions by management in response to changing conditions;
|
| ● |
the Company’s ability to execute prospective business plans;
|
| ● |
misjudgments in the course of preparing forward-looking statements;
|
| ● |
the Company’s ability to raise sufficient funds to carry out its proposed business plan;
|
| ● |
inability to keep up with advances in EV and battery technology;
|
| ● |
inability to design, develop, market and sell new EVs and services that address additional market opportunities to generate revenue and positive cash flows;
|
| ● |
dependency on certain key personnel and any inability to retain and attract qualified personnel;
|
| ● |
inexperience in mass-producing EVs;
|
| ● |
inability to succeed in establishing, maintaining and strengthening the Cenntro brand;
|
| ● |
disruption of supply or shortage of raw materials and supply chain disruptions, including constraints on steel, semiconductors and other material inputs and resulting cost increases impacting our Company;
|
| ● |
our ability to receive sufficient proceeds from our current and any future financing arrangements to meet our immediate liquidity needs and the potential costs, dilution and restrictions resulting from any such
financing; our ability to maintain compliance with the listing requirements of the Nasdaq and the impact of any steps we have taken, including reverse splits of our common stock, on our operations, stock price and future access to funds
|
| ● |
the unavailability, reduction or elimination of government and economic incentives;
|
| ● |
failure to manage future growth effectively; and
|
| ● |
the other risks and uncertainties detailed from time to time in our filings with the United States Securities and Exchange Commission (“SEC”), including but not limited to those described under “Risk Factors”
in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on April 1, 2025 (the “Form 10-K”).
|
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Page
|
|
| 1 |
|
| 1 | |
| 2 | |
| 3 | |
| 4 |
|
| 5 |
|
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||||||||||||
|
Note
|
2025
|
2024
|
2025
|
2024
|
||||||||||||||||
|
Net revenues
|
2(d
|
)
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
|
Cost of goods sold
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Gross (loss) profit
|
( |
)
|
|
|
|
|||||||||||||||
|
|
||||||||||||||||||||
|
OPERATING EXPENSES:
|
|
|||||||||||||||||||
|
Selling and marketing expenses
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
General and administrative expenses
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Research and development expenses
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Provision for credit losses
|
( |
) |
( |
) |
||||||||||||||||
|
Total operating expenses
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
|
||||||||||||||||||||
|
Loss from operations
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
|
||||||||||||||||||||
|
OTHER INCOME (EXPENSE):
|
|
|||||||||||||||||||
|
Interest expense, net
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Gain (loss) from long-term investments
|
|
( |
)
|
( |
)
|
( |
)
|
|||||||||||||
|
Change in fair value of convertible promissory notes and derivative liability
|
( |
|
|
( |
)
|
|
||||||||||||||
|
Loss from Note Amendment
|
( |
) |
( |
) |
||||||||||||||||
|
Gain from early termination of lease contract
|
|
|
|
|
||||||||||||||||
|
Change in fair value of equity securities
|
|
|
|
|
||||||||||||||||
|
Foreign currency exchange gain (loss), net
|
|
( |
)
|
|
( |
)
|
||||||||||||||
|
Loss from acquisition of Hezhe
|
|
( |
)
|
|
( |
)
|
||||||||||||||
|
Gain from disposal of Cenntro Electric CICS, SRL’s equity
|
|
|
|
|
|
|
||||||||||||||
|
Gain (loss) from cross-currency swaps
|
|
( |
)
|
( |
)
|
|
||||||||||||||
|
Other (expense) income, net
|
( |
)
|
( |
)
|
|
( |
)
|
|||||||||||||
|
Net loss from continuing operations before taxes
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Income tax benefit
|
|
|
|
|
||||||||||||||||
|
Net loss from continuing operations
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
|
||||||||||||||||||||
|
Discontinued operations:
|
|
|||||||||||||||||||
|
Loss from discontinued operations, net of tax
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
|
||||||||||||||||||||
|
Net loss
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Less: net loss attributable to non-controlling interests
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Net loss attributable to the Company’s shareholders
|
$
|
( |
)
|
$
|
( |
)
|
$
|
( |
)
|
$
|
( |
)
|
||||||||
|
|
||||||||||||||||||||
|
OTHER COMPREHENSIVE INCOME (LOSS)
|
|
|||||||||||||||||||
|
Foreign currency translation adjustment
|
|
( |
)
|
|
( |
)
|
||||||||||||||
|
Unrealized holding gains for available-for-sale securities
|
|
|
|
|
||||||||||||||||
|
Total comprehensive loss
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
|
||||||||||||||||||||
|
Less: total comprehensive loss attributable to non-controlling interests
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Total comprehensive loss attributable to the Company’s shareholders
|
$
|
( |
)
|
$
|
( |
)
|
$
|
( |
)
|
$
|
( |
)
|
||||||||
|
Weighted average number of shares outstanding, basic and diluted
|
|
|
|
|
||||||||||||||||
|
Loss per common share
|
||||||||||||||||||||
|
Continuing operations - basic and diluted
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Discontinued operations - basic and diluted
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Net loss per common share - basic and diluted
|
( |
)
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||
|
Note
|
June 30,
2025
|
December 31,
2024
|
||||||||||
|
(Unaudited)
|
||||||||||||
|
ASSETS
|
||||||||||||
|
Current assets:
|
||||||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
||||||||
|
Restricted cash, current
|
|
|
||||||||||
|
Short-term investment
|
|
|
||||||||||
|
Accounts receivable, net
|
3
|
|
|
|||||||||
|
Inventories, net
|
4
|
|
|
|||||||||
|
Prepayment and other current assets
|
5
|
|
|
|||||||||
|
Amounts due from related parties - current
|
19
|
|||||||||||
|
Assets held for sale, current
|
1(d
|
)
|
|
|
||||||||
|
Total current assets
|
|
|
||||||||||
|
Non-current assets:
|
||||||||||||
|
Long-term time deposit
|
|
|
||||||||||
|
Long-term investments
|
6
|
|
|
|||||||||
|
Investment in equity security
|
7
|
|
|
|||||||||
|
Property, plant and equipment, net
|
8
|
|
|
|||||||||
|
Intangible assets, net
|
9
|
|
|
|||||||||
|
Right-of-use assets, net
|
14
|
|
|
|||||||||
|
Other non-current assets, net
|
|
|
||||||||||
|
Total non-current assets
|
|
|
||||||||||
|
Total Assets
|
$
|
|
$
|
|
||||||||
|
LIABILITIES AND EQUITY
|
||||||||||||
|
LIABILITIES
|
||||||||||||
|
Current liabilities:
|
||||||||||||
|
Accounts payable
|
10
|
$
|
|
$
|
|
|||||||
|
Short-term loans and current portion of long-term loans
|
12
|
|
|
|||||||||
|
Accrued expenses and other current liabilities
|
11
|
|
|
|||||||||
|
Contractual liabilities
|
2(d
|
)
|
|
|
||||||||
|
Operating lease liabilities, current
|
14
|
|
|
|||||||||
|
Convertible promissory notes
|
15
|
|
|
|||||||||
|
Deferred government grant, current
|
|
|
||||||||||
|
Amounts due to related parties
|
19
|
|||||||||||
|
Liabilities held for sale, current
|
1(d
|
)
|
|
|
||||||||
|
Total current liabilities
|
|
|
||||||||||
|
Non-current liabilities:
|
||||||||||||
|
Long-term loans
|
12
|
|
|
|||||||||
|
Deferred tax liabilities
|
13
|
|
|
|||||||||
|
Deferred government grant, non-current
|
|
|
||||||||||
|
Derivative liability - investor warrant
|
15
|
|
|
|||||||||
|
Derivative liability - placement agent warrant
|
15
|
|
|
|||||||||
|
Operating lease liabilities, non-current
|
14
|
|
|
|||||||||
|
Total non-current liabilities
|
|
|
||||||||||
|
Total Liabilities
|
$
|
|
$
|
|
||||||||
|
Commitments and contingencies
|
18
|
|||||||||||
|
EQUITY
|
||||||||||||
| Common stock ( |
|
|
||||||||||
|
Additional paid in capital
|
|
|
||||||||||
|
Accumulated deficit
|
( |
)
|
( |
)
|
||||||||
|
Accumulated other comprehensive loss
|
( |
)
|
( |
)
|
||||||||
|
Total equity attributable to shareholders
|
|
|
||||||||||
|
Non-controlling interests
|
|
|
||||||||||
|
Total Equity
|
$
|
|
$
|
|
||||||||
|
Total Liabilities and Equity
|
$
|
|
$
|
|
||||||||
|
Common stock
|
Additional
paid in capital
|
Accumulated
deficit
|
Accumulated
other
comprehensive
loss
|
Total
shareholders’
equity
|
Non-
controlling
interest
|
Total equity
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||||
|
Balance as of December 31, 2023
|
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
( |
)
|
$
|
|
||||||||||||||
|
Share-based compensation
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Net loss
|
-
|
|
|
( |
)
|
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||||||||||
| Acquisition of |
- |
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Fractional shares issued due to reverse stock split
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Foreign currency translation adjustment
|
-
|
|
|
|
( |
)
|
( |
)
|
|
( |
)
|
|||||||||||||||||||||
|
Balance as of June 30, 2024 (unaudited)
|
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
|
Common stock
|
Additional
paid in capital
|
Accumulated
deficit
|
Accumulated
other
comprehensive
loss
|
Total
shareholders’
equity
|
Non-
controlling
interest
|
Total equity
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
|||||||||||||||||||||||||||||||
|
Balance as of December 31, 2024
|
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
|
Share-based compensation
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Conversion of convertible bonds into shares
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Cashless exercise of warrant
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Net loss
|
-
|
|
|
( |
)
|
|
( |
)
|
( |
)
|
( |
)
|
||||||||||||||||||||
|
Unrealized holding gains for available-for-sale securities
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Disposal of a subsidiary
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||||||
|
Foreign currency translation adjustment
|
-
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
|
Balance as of June 30, 2025 (unaudited)
|
|
$
|
|
$
|
|
$
|
( |
)
|
$
|
( |
)
|
$
|
|
$
|
|
$
|
|
|||||||||||||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
|
Net cash used in operating activities
|
$
|
( |
)
|
$
|
( |
)
|
||
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
|
Purchase of property, plant and equipment
|
( |
)
|
( |
)
|
||||
| Net of cash acquired of |
|
( |
) |
|||||
|
Net of cash decrease of disposal of Cenntro Electric CICS, SRL
|
( |
)
|
|
|||||
|
Cash dividend from long-term investment
|
|
|
||||||
|
Proceeds from disposal of property, plant and equipment
|
|
|
||||||
|
Proceeds from interest and redemption of equity securities
|
|
|
||||||
|
Loans provided to a related party
|
( |
)
|
|
|||||
|
Net cash used in investing activities
|
( |
)
|
( |
)
|
||||
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
|
Proceeds from bank loans
|
|
|
||||||
|
Repayments to bank loans
|
( |
)
|
( |
)
|
||||
|
Loans proceed from third parties
|
|
|
||||||
|
Repayment of loans to third parties
|
( |
)
|
|
|||||
|
Loans proceed from related parties
|
|
|
||||||
|
Net cash provided by financing activities
|
|
|
||||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
|
( |
)
|
|||||
|
Net decrease in cash, cash equivalents and restricted cash
|
( |
)
|
( |
)
|
||||
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
|
||||||
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
|
$
|
|
||||
|
Reconciliation of cash, cash equivalents and restricted cash:
|
||||||||
|
Cash and cash equivalents
|
|
|
||||||
|
Restricted cash
|
|
|
||||||
|
Cash, cash equivalents and restricted cash at end of period, held for sale
|
|
|
||||||
|
Total cash, cash equivalents and restricted cash shown in the statement of cashflow
|
|
|
||||||
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
|
Interest paid
|
$
|
|
$
|
|
||||
|
Income tax paid
|
$
|
|
$
|
|
||||
|
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANCACTION:
|
||||||||
|
Conversion of convertible bonds into shares
|
$
|
|
$
|
|
||||
|
Cashless exercise for warrants
|
$
|
|
$
|
|
||||
| (a) |
Historical and principal activities
|
|
(b)
|
Reverse recapitalization
|
| (c) |
Redomiciliation of CEGL
|
| (d) |
Discontinued Operations - CEGE, CAE and Cenntro EV Center Italy S.R.L
|
|
June 30,
|
December 31,
|
|||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Cash and cash equivalents
|
$
|
|
$
|
|
||||
|
Accounts receivable, net
|
|
|
||||||
|
Inventories
|
|
|
||||||
|
Prepayment and other current assets
|
|
|
||||||
|
Long-term investment
|
|
|
||||||
|
Other non-current assets
|
|
|
||||||
|
Total assets classified as held for sale
|
|
|
||||||
|
Accounts payable
|
$
|
|
$
|
|
||||
|
Accrued expenses and other current liabilities
|
|
|
||||||
|
Contractual liabilities
|
|
|
||||||
|
Operating lease liabilities, current
|
|
|
||||||
|
Total liabilities classified as held for sale
|
$
|
|
$
|
|
||||
|
For the Six Months ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Net revenues
|
$
|
|
$
|
|
||||
|
Cost of goods sold
|
( |
)
|
( |
)
|
||||
|
Gross loss
|
( |
)
|
( |
)
|
||||
|
|
||||||||
|
Selling and marketing expenses
|
( |
)
|
( |
)
|
||||
|
General and administrative expenses
|
( |
)
|
( |
)
|
||||
|
Research and development expenses
|
|
( |
)
|
|||||
|
Provision for credit losses
|
( |
)
|
|
|||||
|
Total operating expenses
|
( |
)
|
( |
)
|
||||
|
|
||||||||
|
Loss from discontinued operations
|
( |
)
|
( |
)
|
||||
|
|
||||||||
|
Income from long-term investments
|
|
|
||||||
|
Foreign currency exchange loss, net
|
( |
)
|
( |
)
|
||||
|
Other (loss) income, net
|
( |
)
|
|
|||||
|
Loss from discontinued operations before taxes
|
( |
)
|
( |
)
|
||||
|
Income tax benefit
|
|
|
||||||
|
Loss from discontinued operations, net of tax
|
$
|
( |
)
|
$
|
( |
)
|
||
| Name | Date of Incorporation | Place of Incorporation | Percentage of direct or indirect economic interest | |||
| Cenntro Electric Group Pty Limited (“CEGL”) | | | | |||
| Cenntro Automotive Corporation (“CAC”) | | | | |||
| Cenntro Electric Group, Inc. (“CEGI”) | | | | |||
| Cennatic Power, Inc. (“Cennatic Power”) | | | | |||
| Cenntro Electric Group (Europe) GmbH (3) | | | | |||
| Bison Motors Inc. (formerly known as “Teemak Power Corporation”) (1) | | | | |||
| Avantier Motors Corporation | | | | |||
| Cennatic Energy S. de R.L. de C.V. | | | | |||
| Cenntro Automotive S.A.S. | | | | |||
| Cenntro Electric Colombia S.A.S. | | | | |||
| Cenntro Automotive Group Limited (“CAG HK”) | | | | |||
| Hangzhou Ronda Tech Co., Limited (“Hangzhou Ronda”) | | | | |||
| Hangzhou Cenntro Autotech Co., Limited (“Cenntro Hangzhou”) | | | | |||
| Zhejiang Cenntro Machinery Co., Limited | | | | |||
| Jiangsu Tooniu Tech Co., Limited | | | | |||
| Hangzhou Hengzhong Tech Co., Limited | | | | |||
| Teemak Power (Hong Kong) Limited (HK) | | | | |||
| Avantier Motors (Hong Kong) Limited | | | | |||
| Cenntro Automotive Europe GmbH (“CAE”) (3) | | | | |||
| Cenntro Electric B.V. | | | | |||
| Cenntro Elektromobilite Araçlar A.Ş | | | | |||
| Cenntro Elecautomotiv, S.L. | | | | |||
| Simachinery Equipment Limited (“Simachinery HK”) | | | | |||
| Zhejiang Sinomachinery Co., Limited (“Sinomachinery Zhejiang”) (2) | | | | |||
| Shengzhou Cenntro Machinery Co., Limited (“Cenntro Machinery”) (2) | | | | |||
| Cenntro EV Center Italy S.R.L. (3) | | | | |||
| Antric GmbH | | | | |||
| Pikka Electric Corporation | | | | |||
| Centro Technology Corporation | | | | |||
| Hangzhou Hezhe Energy Technology Co., Ltd. (“Hangzhou Hezhe”) | | | |
| (1) | |
| (2) | |
| (3) | |
| (4) | On April 1, 2025, the other shareholder of Cenntro Electric CICS, SRL, Billy Rafael Romero Del Rosario increased his shareholding from |
| (a) | Basis of presentation |
| (b) | Use of estimates |
| (c) | Fair value measurement |
| (d) | Revenue recognition |
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Vehicles sales
|
$
|
|
$
|
|
||||
|
Spare-parts sales
|
|
|
||||||
|
Other service income
|
|
|
||||||
|
Net revenues
|
|
|
||||||
|
Less: Net revenues, discontinued operation
|
( |
)
|
( |
)
|
||||
|
Net revenues, continuing operation
|
$
|
|
$
|
|
||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Primary geographical markets
|
||||||||
|
Asia
|
$
|
|
$
|
|
||||
|
Europe
|
|
|
||||||
|
America
|
|
|
||||||
|
Others
|
|
|
||||||
|
Net revenues
|
|
|
||||||
|
Less: Net revenues, discontinued operation
|
( |
)
|
( |
)
|
||||
|
Net revenues, continuing operation
|
$
|
|
$
|
|
||||
|
June 30,
2025
|
December 31,
2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Accounts receivable, net
|
$
|
|
$
|
|
||||
|
Less: accounts receivable, net, held for discontinued operation
|
( |
)
|
( |
)
|
||||
|
Accounts receivable, net, held for continuing operation
|
|
|
||||||
|
Contractual liabilities
|
$
|
|
$
|
|
||||
|
Less: contractual liabilities, held for discontinued operation
|
( |
)
|
( |
)
|
||||
|
Contractual liabilities, held for continuing operation
|
|
|
||||||
| (e) | Recently issued accounting standards pronouncements |
|
June 30, 2025
(Unaudited)
|
December 31,
2024
|
|||||||
|
Accounts receivable
|
$
|
|
$
|
|
||||
|
Less: provision for credit losses
|
( |
)
|
( |
)
|
||||
|
Total accounts receivable, net
|
|
|
||||||
|
Less: accounts receivable, net, held for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Accounts receivable, net, held for continuing operations
|
$
|
|
$
|
|
||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Balance at the beginning of the period
|
$
|
|
$
|
|
||||
|
Additions
|
|
|
||||||
|
Write-off
|
( |
)
|
( |
)
|
||||
|
Foreign exchange
|
|
( |
)
|
|||||
|
Balance at the end of the period
|
|
|
||||||
|
Less: balance of held for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Balance of held for continuing operations
|
$
|
|
$
|
|
||||
|
June 30, 2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Raw material
|
$
|
|
$
|
|
||||
|
Work-in-progress
|
|
|
||||||
|
Goods in transit
|
|
|
||||||
|
Finished goods
|
|
|
||||||
|
Inventories, gross
|
|
|
||||||
|
Less: Inventory valuation allowance
|
( |
)
|
( |
)
|
||||
|
Total inventories, net
|
|
|
||||||
|
Less: inventories, net, held for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Inventories, net, held for continuing operations
|
$
|
|
$
|
|
||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Balance at the beginning of the period
|
$
|
|
$
|
|
||||
|
Addition
|
|
|
||||||
|
Write-off
|
( |
)
|
( |
)
|
||||
|
Foreign exchange
|
|
( |
)
|
|||||
|
Balance at the end of the period
|
$
|
|
$
|
|
||||
|
June 30, 2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Advance to suppliers
|
$
|
|
$
|
|
||||
|
Deductible input value added tax
|
|
|
||||||
|
Others
|
|
|
||||||
|
Total prepayment and other current assets
|
|
|
||||||
|
Less: prepayment and other current assets, held for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Prepayment and other current assets, held for continuing operations
|
$
|
|
$
|
|
||||
| (a) |
Equity method investment, net
|
|
June 30, 2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Hangzhou Entropy Yu Equity Investment Partnership (Limited Partnership) (“Entropy Yu”) (1)
|
$
|
|
$
|
|
||||
|
Able 2rent GmbH (DEU) (2)
|
|
|
||||||
|
Total equity method investment, net
|
|
|
||||||
|
Less: equity method investment, net, held for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Equity method investment, net, held for continuing operations
|
$
|
|
$
|
|
||||
| (1) | |
| (2) | |
| (b) |
Equity investment without readily determinable fair values, net
|
|
June 30, 2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
HW Electro Co., Ltd. (1)
|
$
|
|
$
|
|
||||
|
Total equity investment without readily determinable fair values, net
|
|
|
||||||
|
Less: equity investment without readily determinable fair values, net, held for discontinued operations
|
|
|
||||||
|
Equity investment without readily determinable fair values, net, held for continuing operations
|
$
|
|
$
|
|
||||
| (1) | |
| (c) |
Debt security investments
|
|
June 30, 2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
MineOne Fix Income Investment I L.P (1)
|
$
|
$
|
||||||
|
Total investment in equity security
|
|
|
||||||
|
Less: investment in equity security, held for discontinued operations
|
|
|
||||||
|
Investment in equity security, held for continuing operations
|
$
|
|
$
|
|
||||
| (1) | |
|
June 30, 2025
|
December 31,2024
|
|||||||
|
(Unaudited)
|
||||||||
|
At cost:
|
||||||||
|
Plant and building
|
$
|
|
$
|
|
||||
|
Land
|
|
|
||||||
|
Machinery and equipment
|
|
|
||||||
|
Leasehold improvement
|
|
|
||||||
|
Office equipment
|
|
|
||||||
|
Motor vehicles
|
|
|
||||||
|
Construction in progress
|
|
|
||||||
|
Total
|
|
|
||||||
|
Less: accumulated depreciation
|
( |
)
|
( |
)
|
||||
|
Impairment
|
( |
)
|
( |
)
|
||||
|
Property, plant and equipment, net
|
|
|
||||||
|
Less: property, plants and equipment, net, held for discontinued operations
|
|
|
||||||
|
Property, plants and equipment, net, held for continuing operations
|
$
|
|
$
|
|
||||
|
June 30, 2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
At cost:
|
||||||||
|
Land use right
|
$
|
|
$
|
|
||||
|
Trademark
|
|
|
||||||
|
Technology
|
|
|
||||||
|
Software
|
|
|
||||||
|
Total
|
|
|
||||||
|
Less: accumulated amortization
|
( |
)
|
( |
)
|
||||
|
Intangible assets, net
|
|
|
||||||
|
Less: intangible assets, net, held for discontinued operations
|
|
|
||||||
|
Intangible assets, net, held for continuing operations
|
$
|
|
$
|
|
||||
|
June 30, 2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Professional fees payable
|
$
|
|
$
|
|
||||
|
Payable to suppliers
|
|
|
||||||
|
Others
|
|
|
||||||
|
Total accounts payable
|
|
|
||||||
|
Less: accounts payable, held for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Accounts payable, held for continuing operations
|
$
|
|
$
|
|
||||
|
June 30,2025
|
December 31, 2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Accrued litigation compensation
|
$
|
|
$
|
|
||||
|
Loan from third parties (1)
|
|
|
||||||
|
Accrued expenses
|
|
|
||||||
|
Other taxes payable
|
|
|
||||||
|
Employee payroll and welfare payables
|
|
|
||||||
|
Credit card payable
|
|
|
||||||
|
Accrued interest for convertible promissory note
|
|
|
||||||
|
Others
|
|
|
||||||
|
Total accrued expenses and other current liabilities
|
|
|
||||||
|
Less: accrued expenses and other current liabilities, held for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Accrued expenses and other current liabilities, held for continuing operations
|
$
|
|
$
|
|
||||
| (1) | |
| As of June 30, 2025 (Unaudited) | As of December 31, 2024 | |||||||||||||||||||||||||
| Bank and other financial institution | Annual Interest Rate | Start | Maturity | Principal | Current portion | Non- current portion | Current portion | Non- current portion | ||||||||||||||||||
| Bank of Multiple Promerica Republic Dominicana (1) | | % | April and | and 2029 | $ | | $ | | $ | | $ | | $ | | ||||||||||||
| Bank of Multiple Promerica Republic Dominicana (2) | | % | and | | | | | | | |||||||||||||||||
| Industrial and Commercial Bank of China(3) | | % | May and | and 2026 | | | | | | |||||||||||||||||
| Total borrowings | | | | | | |||||||||||||||||||||
| Less: borrowings, held for discontinued operations | | | | | | |||||||||||||||||||||
| Borrowings, held for continuing operations | $ | | $ | | $ | | $ | | $ | | ||||||||||||||||
|
For the Six Months
Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
PRC
|
$
|
|
$
|
|
||||
|
US
|
|
|
||||||
|
Europe
|
|
|
||||||
|
Australia
|
|
|
||||||
|
Others
|
|
|
||||||
|
Total losses before income taxes
|
|
|
||||||
|
Less: losses before income taxes for discontinued operations
|
( |
)
|
( |
)
|
||||
|
Losses before income taxes for continuing operations
|
$
|
|
$
|
|
||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Operating leases cost excluding short-term lease expenses
|
$
|
|
$
|
|
||||
|
Short-term lease expenses
|
|
|
||||||
|
Total
|
$
|
|
$
|
|
||||
| June 30, 2025 (Unaudited) | June 30, 2024 (Unaudited) | |||||||
| Cash paid for amounts included in the measurement of lease liabilities | $ | | $ | | ||||
| Weighted average remaining lease term | | | ||||||
| Weighted average discount rate | | % | | % | ||||
|
Operating
Leases
|
||||
|
For the remaining of the year ended December 31, 2025
|
$
|
|
||
|
For the years ended December 31,
|
||||
|
2026
|
|
|||
|
2027
|
|
|||
|
2028
|
|
|||
|
2029
|
|
|||
|
2030 and thereafter
|
|
|||
|
Total lease payments
|
|
|||
|
Less: imputed interest
|
|
|||
|
Total
|
|
|||
|
Less: current portion
|
||||
|
Non-current portion
|
$
|
|||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Operating leases cost excluding short-term lease expenses
|
$
|
|
$
|
|
||||
|
Short-term lease expenses
|
|
|
||||||
|
Total
|
$
|
|
$
|
|
||||
| June 30, 2025 (Unaudited) | June 30,2024 (Unaudited) | |||||||
| Cash paid for amounts included in the measurement of lease liabilities | $ | | $ | | ||||
| Weighted average remaining lease term | | |||||||
| Weighted average discount rate | | | % | |||||
|
Liability component
|
||||
|
As of December 31, 2023
|
$
|
|
||
|
Convertible promissory notes issued during the year
|
|
|||
|
Redemption of convertible promissory notes
|
|
|||
|
Fair value change recognized
|
( |
)
|
||
|
As of June 30, 2024 (Unaudited)
|
$
|
|
||
|
As of December 31, 2024
|
|
|||
|
Convertible promissory notes issued during the year
|
|
|||
|
Note amendment
|
|
|||
|
Exercise
|
( |
)
|
||
|
Fair value change recognized
|
( |
) |
||
|
As of June 30, 2025 (Unaudited)
|
$
|
|
||
|
Fair Value Assumptions - Convertible Promissory Note
|
June 30, 2025
(Unaudited)
|
December 31,
2024
|
||||||
|
Face value principal payable
|
$
|
|
$
|
|
||||
|
Original conversion price
|
$ | |
$
|
|
||||
|
Interest Rate
|
|
% |
|
% |
||||
|
Expected term (years)
|
|
|
||||||
|
Volatility
|
|
% |
|
% |
||||
|
Market yield (range)
|
|
% |
|
% |
||||
|
Risk free rate
|
|
% |
|
% |
||||
|
Issue date
|
July 20, |
July 20, |
||||||
|
Maturity date
|
January 19, |
January 19, |
||||||
|
Investor warrants component
|
Placement agent warrants component
|
|||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||
|
As of December 31, 2023
|
|
$
|
|
|
$
|
|
||||||||||
|
Exercise of warrants
|
|
|
|
|
||||||||||||
|
Fair value change recognized
|
|
( |
)
|
|
( |
)
|
||||||||||
|
As of June 30, 2024 (Unaudited)
|
|
$
|
|
|
$
|
|
||||||||||
|
As of December 31, 2024
|
|
$
|
|
|
$
|
|
||||||||||
|
Exercise of warrants
|
( |
)
|
( |
)
|
|
|
||||||||||
|
Fair value change recognized
|
|
|
|
|||||||||||||
|
As of June 30, 2025 (Unaudited)
|
|
$
|
|
|
$
|
|
||||||||||
| Fair Value Assumptions – Warrants | June 30, 2025 (Unaudited) | December 31, 2024 | ||||||
| Expected term (years) | | | ||||||
| Volatility | | % | | % | ||||
| Risk free rate | | % | | % | ||||
| Expected expiry date | | | ||||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
General and administrative expenses
|
|
$
|
|
|
|
$
|
|
|
|
Selling and marketing expenses
|
|
|
||||||
|
Research and development expenses
|
|
|
|
|
||||
|
Total
|
|
$
|
|
|
|
$
|
|
|
| Number of Share Options | Weighted Average Exercise Price $ | Weighted Average Remaining Contractual Years | Aggregate Intrinsic Value $ | |||||||||||||
| Outstanding at December 31, 2023 | | | | | ||||||||||||
| Granted | | | ||||||||||||||
| Exercised | | | ||||||||||||||
| Forfeited | ( | ) | | |||||||||||||
| Expired | ( | ) | | |||||||||||||
| Outstanding at June 30, 2024 (Unaudited) | | | | | ||||||||||||
| Outstanding at December 31, 2024 | | | | | ||||||||||||
| Granted | | | ||||||||||||||
| Exercised | | | ||||||||||||||
| Forfeited | ( | ) | | |||||||||||||
| Expired | ( | ) | | |||||||||||||
| Outstanding at June 30, 2025 (Unaudited) | | | | | ||||||||||||
| Expected to vest at June 30, 2025 (Unaudited) | | | | | ||||||||||||
| Exercisable as of June 30, 2025 (Unaudited) | | | | | ||||||||||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
(Unaudited)
|
2024
(Unaudited)
|
|||||||
|
Expected volatility
|
|
% |
|
% |
||||
|
Expected dividends yield
|
|
% |
|
% |
||||
|
Risk-free interest rate per annum
|
|
% | |
% | ||||
|
The fair value of underlying common stock (per share)
|
$ |
$ |
||||||
| (a) |
Customers
|
|
For the Six Months Ended
|
||||||||||||||||
|
June 30, 2025
(Unaudited)
|
June 30, 2024
(Unaudited)
|
|||||||||||||||
|
Customer
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
|
A
|
$
|
|
|
%
|
$
|
|
|
|||||||||
|
B
|
|
|
|
|
%
|
|||||||||||
|
C
|
|
|
|
|
%
|
|||||||||||
|
D
|
|
|
|
|
%
|
|||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| * | |
|
As of June 30, 2025
(Unaudited)
|
As of December 31,
2024
|
|||||||||||||||
|
Customer
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
| E |
|
$
|
|
|
%
|
$
|
|
|
%
|
|||||||
| F |
|
|
%
|
|
||||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
|
*
|
Indicates below 10%.
|
|
As of June 30, 2025
(Unaudited)
|
As of December 31,
2024
|
|||||||||||||||
|
Customer
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
| G |
$
|
|
|
%
|
$
|
|
|
|||||||||
| E |
|
|
%
|
|
|
%
|
||||||||||
| H |
|
|
%
|
|
|
%
|
||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| (b) |
Suppliers
|
|
For the Six Months Ended,
|
||||||||||||||||
|
June 30,
2025
(Unaudited)
|
June 30,
2024
(Unaudited)
|
|||||||||||||||
|
Supplier
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
|
A
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
|
As of June 30, 2025
(Unaudited)
|
As of December 31,
2024
|
|||||||||||||||
|
Supplier
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
|
D
|
$
|
|
|
$
|
|
|
%
|
|||||||||
|
B
|
|
|
%
|
|
|
|||||||||||
|
C
|
|
|
%
|
|
|
|||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
|
As of June 30, 2025
(Unaudited)
|
As of December 31,
2024
|
|||||||||||||||
|
Supplier
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
|
A
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
|
D
|
|
|
|
|
%
|
|||||||||||
| F |
|
%
|
|
|
%
|
|||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| * |
Indicates below 10%.
|
| (a) |
Customers
|
|
For the Six Months Ended,
|
||||||||||||||||
|
June 30, 2025
(Unaudited)
|
June 30, 2024
(Unaudited)
|
|||||||||||||||
|
Customer
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
| I |
$
|
|
|
%
|
$
|
|
|
|||||||||
|
J
|
|
|
%
|
|
|
|||||||||||
| K |
|
|
%
|
|
|
|||||||||||
| L |
|
|
%
|
|
|
%
|
||||||||||
| M |
|
|
%
|
|
|
|||||||||||
| N |
|
|
|
|
%
|
|||||||||||
| O |
|
|
|
|
%
|
|||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| As of June 30, 2025 (Unaudited) | As of December 31, 2024 | |||||||||||||||
| Customer | Amount | % of Total | Amount | % of Total | ||||||||||||
| N | $ | | | % | $ | | | % | ||||||||
| P | | | % | | | % | ||||||||||
| Q | | | % | | | |||||||||||
| Total | $ | | | % | $ | | | % | ||||||||
| As of June 30, 2025 (Unaudited) | As of December 31, 2024 | |||||||||||||||
| Customer | Amount | % of Total | Amount | % of Total | ||||||||||||
| R | | | % | | | % | ||||||||||
| S | | | % | | | % | ||||||||||
| Total | $ | | | % | $ | | | % | ||||||||
| * | |
| (b) |
Suppliers
|
|
As of June 30,
2025
(Unaudited)
|
As of December 31,
2024
|
|||||||||||||||
|
Supplier
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
| G |
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| H |
|
|
%
|
|
|
%
|
||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| * |
Indicates below 10%.
|
|
As of June 30,
2025
(Unaudited)
|
As of December 31,
2024
|
|||||||||||||||
|
Supplier
|
Amount
|
% of Total
|
Amount
|
% of Total
|
||||||||||||
| I |
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| J |
|
|
%
|
|
|
%
|
||||||||||
|
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||
| * |
Indicates below 10%.
|
| Name of related parties: | Relationship with the Company | |
| Zhejiang RAP | | |
| Hangzhou Hezhe | | |
| Billy Rafael Romero Del Rosario | | |
| Zhongchai Holding (Hongkong) Limited(“Zhongchai”) | | |
| Hangzhou Greenland Energy Technologies Co., Ltd.(“Greenland”) | |
|
For the Six Months Ended
June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Interest income from a related party
|
||||||||
|
Zhejiang RAP
|
$
|
$
|
||||||
|
Interest expense to a related party
|
||||||||
|
Zhongchai
|
|
|
||||||
|
Purchase of raw materials from related parties
|
||||||||
|
Hangzhou Hezhe
|
|
|
||||||
|
Interests-bearing loan from a related party
|
||||||||
|
Zhongchai
|
|
|
||||||
|
Interests-bearing loan to a related party
|
||||||||
|
Greenland
|
|
|
||||||
|
Refund on purchase of raw materials
|
||||||||
|
Hangzhou Hezhe
|
|
|
||||||
|
Prepayment of operating fund to a related party
|
||||||||
|
Billy Rafael Romero Del Rosario (1)
|
|
|
||||||
|
Reimbursement from a related party
|
||||||||
|
Billy Rafael Romero Del Rosario
|
|
|
||||||
| (1) | |
|
June 30,
2025(Unaudited)
|
December 31,
2024
|
|||||||
|
Zhejiang RAP (1)
|
$
|
|
|
|||||
|
Greenland (2)
|
|
|
||||||
|
Total amounts due from related parties
|
|
|
||||||
|
Less: amounts due from related parties, held for discontinued operations
|
|
|
||||||
|
Amounts due from related parties, held for continuing operations
|
$
|
|
$
|
|
||||
| (1) | |
| (2) | |
|
June 30,
2025(Unaudited)
|
December 31,
2024
|
|||||||
|
Zhongchai(1)
|
$
|
|
$
|
|
||||
|
Billy Rafael Romero Del Rosario
|
|
|
||||||
|
Total amounts due to related parties
|
|
|
||||||
|
Less: amounts due to related parties, held for discontinued operations
|
|
|
||||||
|
Amounts due to related parties, held for continuing operations
|
$
|
|
$
|
|
||||
| (1) | |
|
Six Months ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Expressed in U.S. Dollars)
|
(Unaudited)
|
|||||||
|
Gross margin of vehicle sales
|
1.33
|
%
|
21.4
|
%
|
||||
|
Three Months ended June 30,
|
Six Months ended June 30,
|
|||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
|||||||||||||
|
(Expressed in U.S. Dollars)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
|
Combined Statements of Operations Data:
|
||||||||||||||||
|
Net revenues
|
6,406,918
|
7,314,829
|
8,549,976
|
9,657,747
|
||||||||||||
|
Cost of goods sold
|
(6,425,822
|
)
|
(5,737,212
|
)
|
(8,247,353
|
)
|
(7,910,923
|
)
|
||||||||
|
Gross (loss) profit
|
(18,904
|
)
|
1,577,617
|
302,623
|
1,746,824
|
|||||||||||
|
Operating Expenses:
|
||||||||||||||||
|
Selling and marketing expenses
|
(227,580
|
)
|
(596,008
|
)
|
(1,004,297
|
)
|
(1,213,969
|
)
|
||||||||
|
General and administrative expenses
|
(5,167,754
|
)
|
(7,070,810
|
)
|
(10,101,922
|
)
|
(12,986,881
|
)
|
||||||||
|
Research and development expenses
|
(648,861
|
)
|
(1,030,953
|
)
|
(1,433,039
|
)
|
(2,540,874
|
)
|
||||||||
|
Provision for credit losses
|
(2,035,343
|
) |
- |
(2,035,343
|
) |
- |
||||||||||
|
Total operating expenses
|
(8,079,538
|
)
|
(8,697,771
|
)
|
(14,574,601
|
)
|
(16,741,724
|
)
|
||||||||
|
Loss from operations
|
(8,098,442
|
)
|
(7,120,154
|
)
|
(14,271,978
|
)
|
(14,994,900
|
)
|
||||||||
|
Other Income (Expense):
|
||||||||||||||||
|
Interest expense, net
|
(156,396
|
)
|
(97,788
|
)
|
(275,084
|
)
|
(24,546
|
)
|
||||||||
|
Gain (loss) from long-term investments
|
3
|
(16,318
|
)
|
(36
|
)
|
(30,188
|
)
|
|||||||||
|
Other (expense) income, net
|
(70,378
|
)
|
(205,006
|
)
|
225,214
|
(152,454
|
)
|
|||||||||
|
Gain from early termination of lease contract
|
-
|
-
|
1,138
|
-
|
||||||||||||
|
Foreign currency exchange gain (loss), net
|
567,141
|
(382,991
|
)
|
971,332
|
(628,170
|
)
|
||||||||||
|
Gain (Loss) from cross-currency swaps
|
26,445
|
(4,346
|
)
|
(9,695
|
)
|
1,587
|
||||||||||
|
Change in fair value of convertible promissory notes and derivative liability
|
(134,161) |
9,237
|
(137,290
|
)
|
8,532
|
|||||||||||
|
Loss from Note Amendment
|
(1,756,137
|
) |
-
|
(1,756,137
|
) |
-
|
||||||||||
|
Change in fair value of equity securities
|
259,565
|
259,564
|
516,277
|
494,451
|
||||||||||||
|
Gain from disposal of Cenntro Electric CICS, SRL’s equity
|
1,157,556
|
|
-
|
1,157,556
|
|
-
|
||||||||||
|
Loss from acquisition of Hezhe
|
-
|
(149,872
|
)
|
-
|
(149,872
|
)
|
||||||||||
|
Net loss from continuing operations before tax
|
(8,204,804
|
)
|
(7,707,674
|
)
|
(13,578,703
|
)
|
(15,475,560
|
)
|
||||||||
|
Income tax benefit
|
15,408
|
4,758
|
27,040
|
16,748
|
||||||||||||
|
Net loss from continuing operations
|
(8,189,396
|
)
|
(7,702,916
|
)
|
(13,551,663
|
)
|
(15,458,812
|
)
|
||||||||
|
Discontinued operations
|
||||||||||||||||
|
Loss from discontinued operations, net of tax
|
(1,705,812
|
)
|
(1,490,879
|
)
|
(2,009,202
|
)
|
(2,965,206
|
)
|
||||||||
|
Net loss
|
(9,895,208
|
)
|
(9,193,795
|
)
|
(15,560,865
|
)
|
(18,424,018
|
)
|
||||||||
|
Less: net loss attributable to non-controlling interests
|
(5,871
|
)
|
(10,968
|
)
|
(17,192
|
)
|
(11,040
|
)
|
||||||||
|
Net loss attributable to the Company’s shareholders
|
(9,889,337
|
)
|
(9,182,827
|
)
|
(15,543,673
|
)
|
(18,412,978
|
)
|
||||||||
|
Three Months ended June 30,
|
Six Months ended June 30,
|
||||||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
||||||||||||||||||||||||||||||
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
||||||||||||||||||||||||||
|
(Expressed in U.S. Dollars)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||||||||
|
Net revenues:
|
|||||||||||||||||||||||||||||||||
|
Vehicle Sales
|
$
|
6,078,798
|
94.9
|
%
|
$
|
6,174,394
|
84.4
|
%
|
$
|
7,890,062
|
92.3
|
%
|
$
|
7,697,504
|
79.7
|
%
|
|||||||||||||||||
|
Spare-part sales
|
259,222
|
4.0
|
%
|
1,097,090
|
15.0
|
%
|
430,037
|
5.0
|
%
|
1,885,903
|
19.5
|
%
|
|||||||||||||||||||||
|
Other sales
|
68,898
|
1.1
|
%
|
43,345
|
0.6
|
%
|
229,877
|
2.7
|
%
|
74,340
|
0.8
|
%
|
|||||||||||||||||||||
|
Total net revenues
|
$
|
6,406,918
|
100.0
|
%
|
$
|
7,314,829
|
100.0
|
%
|
$
|
8,549,976
|
100.0
|
%
|
$
|
9,657,747
|
100.0
|
%
|
|||||||||||||||||
|
Three Months ended June 30,
|
Six Months ended June 30,
|
||||||||||||||||||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
||||||||||||||||||||||||||||||
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
||||||||||||||||||||||||||
|
(Expressed in U.S. Dollars)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||||||||||||||||||
|
Cost of goods sold:
|
|||||||||||||||||||||||||||||||||
|
Vehicle Sales
|
$
|
(5,217,636
|
)
|
81.2
|
%
|
$
|
(3,085,137
|
)
|
53.8
|
%
|
$
|
(6,833,600
|
)
|
82.9
|
%
|
$
|
(4,327,240
|
)
|
54.7
|
%
|
|||||||||||||
|
Spare-part sales
|
(184,363
|
)
|
2.9
|
%
|
(921,271
|
)
|
16.1
|
%
|
(310,763
|
)
|
3.8
|
%
|
(1,785,090
|
)
|
22.6
|
%
|
|||||||||||||||||
|
Other sales
|
(71,986
|
)
|
1.1
|
%
|
(4,913
|
)
|
0.1
|
%
|
(151,153
|
)
|
1.8
|
%
|
(72,702
|
)
|
0.9
|
%
|
|||||||||||||||||
|
Inventory write-down
|
(951,837
|
)
|
14.8
|
%
|
(1,725,891
|
)
|
30.0
|
%
|
(951,837
|
)
|
11.5
|
%
|
(1,725,891
|
)
|
21.8
|
%
|
|||||||||||||||||
|
Total cost of goods sold
|
$
|
(6,425,822
|
)
|
100.0
|
%
|
$
|
(5,737,212
|
)
|
100.0
|
%
|
$
|
(8,247,353
|
)
|
100.0
|
%
|
$
|
(7,910,923
|
)
|
100.0
|
%
|
|||||||||||||
| • |
as a measurement of operating performance because it assists us in comparing the operating performance of our business on a consistent basis, as it removes the impact of items not directly resulting from our core operations;
|
| • |
for planning purposes, including the preparation of our internal annual operating budget and financial projections;
|
| • |
to evaluate the performance and effectiveness of our operational strategies; and
|
| • |
to evaluate our capacity to expand our business.
|
| • |
such measures do not reflect our cash expenditures;
|
| • |
such measures do not reflect changes in, or cash requirements for, our working capital needs;
|
| • |
although depreciation and amortization are recurring, non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and such measures do not reflect any cash requirements for such replacements;
and
|
| • |
the exclusion of stock-based compensation expense, which has been a significant recurring expense and will continue to constitute a significant recurring expense for the foreseeable future, as equity awards are expected to continue to be
an important component of our compensation strategy.
|
|
Three Months ended June 30,
|
Six Months ended June 30,
|
||||||||||||||||
|
2025
|
2024
|
2025
|
2024
|
||||||||||||||
|
(Expressed in U.S. Dollars)
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
|
Net loss
|
$
|
(9,895,208
|
)
|
$
|
(9,193,795
|
)
|
$
|
(15,560,865
|
)
|
$
|
(18,424,018
|
)
|
|||||
|
Interest expense, net
|
156,396
|
97,788
|
275,084
|
24,546
|
|||||||||||||
|
Income tax benefit
|
(15,408
|
)
|
(4,758
|
)
|
(27,040
|
)
|
(16,748
|
) |
|||||||||
|
Depreciation and amortization
|
555,647
|
484,704
|
1,105,925
|
975,244
|
|||||||||||||
|
Share-based compensation expense
|
719,937
|
866,793
|
1,459,588
|
1,773,120
|
|||||||||||||
|
Change in fair value of convertible promissory notes and derivative liability
|
134,161
|
(9,237
|
)
|
137,290
|
(8,532
|
)
|
|||||||||||
|
Gain from Note Amendment
|
1,756,137
|
1,756,137
|
|||||||||||||||
|
Adjusted EBITDA
|
$
|
(6,588,338
|
)
|
$
|
(7,758,505
|
)
|
$
|
(10,853,881
|
)
|
$
|
(15,676,388
|
)
|
|||||
| • |
The costs of bringing our new facilities into operation;
|
| • |
The timing and costs involved in rolling out new ECV models to market;
|
| • |
Our ability to manage the costs of manufacturing our ECVs;
|
| • |
The costs of maintaining, expanding and protecting our intellectual property portfolio, including potential litigation costs and liabilities;
|
| • |
Revenues received from sales of our ECVs;
|
| • |
The costs of additional general and administrative personnel, including accounting and finance, legal and human resources, as well as costs related to litigation, investigations, or settlements;
|
| • |
Our ability to collect future revenues; and
|
| • |
Other risks discussed in the section titled “Risk Factors.”
|
|
Six Months Ended June 30,
|
|||||||||
|
2025
|
2024
|
||||||||
|
(Expressed in U.S. Dollars)
|
(Unaudited)
|
||||||||
|
Net cash used in operating activities
|
$
|
(9,360,191
|
)
|
$
|
(12,710,460
|
)
|
|||
|
Net cash used in investing activities
|
(601,069
|
)
|
(349,921
|
)
|
|||||
|
Net cash provided by financing activities
|
2,934,554
|
461,636
|
|||||||
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
157,307
|
(546,408
|
)
|
||||||
|
Net decrease in cash, cash equivalents, and restricted cash
|
(6,869,399
|
)
|
(13,145,153
|
)
|
|||||
|
Cash and cash equivalents, and restricted cash at beginning of the period-continuing
|
12,820,459
|
24,532,655
|
|||||||
|
Cash and cash equivalents, and restricted cash at beginning of the period-discontinued
|
140,029
|
5,039,242
|
|||||||
|
Cash and cash equivalents, and restricted cash at end of the period-continuing
|
6,085,569
|
16,208,605
|
|||||||
|
Cash and cash equivalents, and restricted cash at end of the period- discontinued
|
$
|
5,520
|
$
|
218,139
|
|||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Vehicles sales
|
$
|
7,976,499
|
$
|
9,610,536
|
||||
|
Spare-parts sales
|
505,779
|
1,978,161
|
||||||
|
Other service income
|
229,877
|
123,794
|
||||||
|
Net revenues
|
8,712,155
|
11,712,491
|
||||||
|
Less: Net revenues, discontinued operation
|
(162,179
|
)
|
(2,054,744
|
)
|
||||
|
Net revenues, continuing operation
|
$
|
8,549,976
|
$
|
9,657,747
|
||||
|
For the Six Months Ended June 30,
|
||||||||
|
2025
|
2024
|
|||||||
|
(Unaudited)
|
(Unaudited)
|
|||||||
|
Primary geographical markets
|
||||||||
|
Asia
|
$
|
1,931,593
|
$
|
2,294,674
|
||||
|
Europe
|
5,786,495
|
3,654,430
|
||||||
|
America
|
960,227
|
5,763,387
|
||||||
|
Others
|
33,840
|
-
|
||||||
|
Net revenues
|
8,712,155
|
11,712,491
|
||||||
|
Less: Net revenues, discontinued operation
|
(162,179
|
)
|
(2,054,744
|
)
|
||||
|
Net revenues, continuing operation
|
$
|
8,549,976
|
$
|
9,657,747
|
||||
|
June 30,
2025
|
December 31,
2024
|
|||||||
|
(Unaudited)
|
||||||||
|
Accounts receivable, net
|
$
|
4,375,966
|
$
|
4,688,322
|
||||
|
Less: accounts receivable, net, held for discontinued operation
|
(1,139,219
|
)
|
(1,406,457
|
)
|
||||
|
Accounts receivable, net, held for continuing operation
|
3,236,747
|
3,281,865
|
||||||
|
Contractual liabilities
|
$
|
4,904,249
|
$
|
4,202,001
|
||||
|
Less: contractual liabilities, held for discontinued operation
|
(149,916
|
)
|
(80,696
|
)
|
||||
|
Contractual liabilities, held for continuing operation
|
4,754,333
|
4,121,305
|
||||||
|
Exhibit
No.
|
Description of Exhibit
|
|
|
Certification of Principal Executive Officer required by Rule 13a-14(a).
|
||
|
Certification of Principal Financial Officer required by Rule 13a-14(a).
|
||
|
Certification required by Section 1350 of Chapter 63 of Title 18 of the United States Code.
|
||
|
101.INS*
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
101.SCH*
|
Inline XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL*
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF*
|
Inline XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB*
|
Inline XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE*
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
104*
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibits 101)
|
| * |
Filed herewith.
|
| ** |
Furnished herewith.
|
|
CENNTRO INC.
|
||
|
Dated: August 12, 2025.
|
||
|
CENNTRO INC.
|
||
|
By:
|
/s/ Peter Z. Wang
|
|
|
Peter Z. Wang
|
||
|
Chief Executive Officer
|
||
|
(Principal Executive Officer)
|
||
|
By:
|
/s/ Edward Ye
|
|
|
Edward Ye
|
||
|
Acting Chief Financial Officer
|
||
|
(Principal Accounting Officer)
|
||