Cenntro Electric Group Ltd. (Cenntro Inc.) reported significant financial improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Net revenues for Q3 2024 reached $16.7 million, a 190.3% increase from $5.8 million in Q3 2023. For the nine-month period, revenues totaled $28.4 million, up 111.2% from $13.5 million in the prior year. This growth was primarily driven by vehicle sales, which accounted for 94.9% of Q3 revenues and 89.6% for the nine months, with total vehicle sales rising to $25.5 million from $12.7 million year-over-year.

Gross profit also saw substantial gains, with Q3 2024 gross profit at $4.0 million compared to $0.7 million in Q3 2023. For the nine months, gross profit increased to $5.3 million from a gross loss of $2.1 million in the same period last year. The gross margin for vehicle sales improved to 19.2% from 16.3%.

Despite these revenue and profit increases, Cenntro reported a net loss of $9.0 million for Q3 2024, down from a loss of $16.1 million in Q3 2023. The nine-month net loss was $27.4 million, a significant reduction from $41.3 million in the previous year. Loss per share also improved, with Q3 2024 reporting $(0.29) compared to $(0.53) in Q3 2023.

Cenntro's operational efficiency has been a focus, as evidenced by a reduction in net cash used in operating activities, which decreased to $12.9 million for the nine months ended September 30, 2024, from $45.6 million in the same period of 2023. The company is implementing strategies to enhance inventory turnover and control operating costs.

In terms of strategic developments, Cenntro completed the acquisition of Hangzhou Hezhe Energy Technology Co., Ltd., increasing its ownership to 80%. The company is also focusing on expanding its manufacturing capabilities in North America and Europe, with plans for local assembly facilities and an expansion of its Changxing factory.

As of September 30, 2024, Cenntro's total assets were approximately $159.8 million, down from $185.5 million at the end of 2023, while total liabilities slightly decreased to $63.0 million. The company reported a working capital of $53.3 million, down from $75.6 million at the end of 2023, attributed to declines in cash, accounts receivable, and inventories.

Overall, Cenntro's financial performance reflects a positive trajectory in revenue growth and operational efficiency, despite ongoing net losses and strategic challenges.