Cenntro Inc. Reports Q2 2026 Financial Results with Revenue Decline and Operational Loss

Cenntro Inc. reported its financial results for the second quarter of 2026, revealing a net revenue of $6.2 million, a decrease of 2.9% compared to $6.4 million in the same period last year. For the first half of 2026, the company generated $7.4 million in revenue, down 13.1% from $8.5 million in the first half of 2025. The decline in revenue was primarily attributed to a significant drop in vehicle sales, which fell by approximately $2.6 million, although spare parts sales increased by $1.6 million. The gross profit for the second quarter was $412,820, a notable recovery from a loss of $18,904 in the prior year, while the gross profit for the first half of 2026 was $649,948, compared to $302,623 in the same period of 2025.

The company's operating expenses for the second quarter totaled $7.9 million, slightly lower than the $8.1 million reported in the same quarter of 2025. Notably, general and administrative expenses decreased significantly to $3.8 million from $5.2 million year-over-year, reflecting ongoing cost optimization efforts. However, the company recorded a loss from operations of $7.5 million for the second quarter, compared to a loss of $8.1 million in the same quarter last year. The net loss attributable to shareholders for the second quarter was $10.6 million, compared to $9.9 million in the prior year.

Cenntro has undergone significant operational changes, including the deconsolidation of its European subsidiaries due to insolvency, which has impacted its financial results. The company is shifting its focus back to a distributor-based model in Europe, having previously experimented with direct sales. This strategic pivot aims to enhance efficiency and reduce operational costs. The company also reported a loss of $1.9 million related to the deconsolidation of a subsidiary, which contributed to the overall net loss for the quarter.

As of June 30, 2026, Cenntro's cash and cash equivalents stood at approximately $4.3 million, a slight decrease from $4.5 million at the end of 2025. The company reported a working capital of $16.4 million, down from $19.0 million at the end of the previous fiscal year. Cenntro's management expressed optimism about future growth, focusing on the rollout of new electric commercial vehicle models and the establishment of local assembly facilities in key markets. The company anticipates that these initiatives will help improve cash flow and operational efficiency in the coming months.

Looking ahead, Cenntro plans to continue its efforts to enhance revenue generation and control operating costs. The company is also evaluating the impact of new accounting standards and expects to adopt relevant guidance in the upcoming fiscal year. Despite the challenges faced in the first half of 2026, management remains committed to executing its strategic initiatives and improving financial performance.