Cenntro Inc. Reports Q1 2025 Financial Results with $2.14M Revenue and Improved Gross Profit

Cenntro Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $2.14 million, a decrease of 8.5% from $2.34 million in the same period last year. The decline was primarily attributed to a significant drop in spare-part sales, which fell by approximately $0.6 million, despite an increase in vehicle sales of about $0.3 million. The company sold 129 electric commercial vehicles (ECVs) during the quarter, compared to 96 units in the prior year, indicating a shift in focus towards vehicle sales. The gross profit for the quarter was $321,527, up from $169,207 in the previous year, reflecting improved margins despite lower overall revenues.

Operating expenses for the quarter totaled $6.5 million, down from $8.0 million in the prior year, driven by reductions in general and administrative expenses and research and development costs. General and administrative expenses decreased by 16.6% to $4.93 million, while research and development expenses fell by 48.1% to $0.78 million. The company reported a net loss of $5.66 million, a significant improvement from a loss of $9.23 million in the same quarter of 2024. This improvement was supported by a foreign currency exchange gain of $404,191, which contrasted with a loss of $245,179 in the previous year.

Cenntro's operational strategy has evolved, with a focus on a distributor-based model in Europe and a hybrid approach in North America, combining direct sales with distributor partnerships. The company has also initiated a restructuring of its European operations, transitioning to a centralized dealership distribution system to enhance efficiency and reduce costs. This strategic shift is expected to allow Cenntro to allocate resources more effectively towards its core markets in North America and Asia.

As of March 31, 2025, Cenntro's total assets were approximately $129.34 million, a decrease from $132.57 million at the end of 2024. The company reported a working capital of $31.9 million, down from $36.8 million, primarily due to a decrease in cash and cash equivalents. The company had approximately $8.54 million in cash and cash equivalents at the end of the quarter, compared to $20.2 million a year earlier. Looking ahead, Cenntro plans to continue its focus on expanding its electric vehicle offerings and enhancing its distribution channels, while managing costs and improving operational efficiencies.