Cenntro Inc. Reports 11.5% Revenue Decline and $15.5 Million Net Loss for Six Months Ended June 30, 2025

Cenntro Inc. reported a decline in financial performance for the six months ended June 30, 2025, with net revenues of approximately $8.5 million, down 11.5% from $9.7 million in the same period of 2024. The decrease was primarily attributed to a significant drop in spare-part sales, which fell by approximately $1.5 million, while vehicle sales saw a modest increase of about $0.2 million. The company recorded a gross profit of approximately $0.3 million, a decrease of $1.4 million compared to the prior year, resulting in a gross margin of 3.5%, down from 18.1% in 2024. The net loss attributable to shareholders for the six months was approximately $15.5 million, compared to a loss of $18.4 million in the previous year.

Operationally, Cenntro's vehicle sales totaled 559 units for the six months ended June 30, 2025, compared to 265 units in the same period of 2024. The company has been focusing on expanding its market presence, particularly in Europe, where revenues increased significantly to approximately $5.6 million, up from $1.6 million in the previous year. In contrast, revenues from the North American market decreased sharply to $960,227 from $5.8 million, reflecting a strategic shift in sales channels and market focus.

Cenntro has also made significant changes to its operational structure, including the acquisition of a 60% stake in Hangzhou Hezhe Energy Technology Co., Ltd. and the restructuring of its European operations to phase out direct sales in favor of a centralized dealership distribution model. This strategic shift aims to enhance efficiency and reduce operational costs. The company reported a total employee headcount of 51,912, reflecting its ongoing efforts to streamline operations and focus on core markets.

Looking ahead, Cenntro plans to continue its focus on expanding its electric commercial vehicle (ECV) offerings and enhancing its manufacturing capabilities. The company aims to establish local assembly facilities in North America and Europe, which is expected to improve operational efficiency and reduce costs. Despite the current challenges, management remains optimistic about future growth opportunities, particularly in the expanding ECV market, and is committed to improving its financial performance through strategic initiatives and operational efficiencies.