UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2025
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission File Number: 001-38544
CENNTRO INC.
(Exact name of registrant as specified in its charter)
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (732) 820-6757
Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $0.0001 par value per share CENN The Nasdaq Capital Market
Securities registered pursuant to Section 12(g) of the Act:
None
(Title of class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant Section 13 or 15(d) of the Exchange Act. Yes ☐ No ☒
Note - Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Exchange Act from their
obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions
of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer ☒ Smaller reporting company ☒
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers
during the relevant recovery period pursuant to § 240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐
As of April 10, 2026 (prior to the reverse stock split effected on April 13, 2026), there were 87,912,831 of the registrant’s common stock, par value $0.0001 per share, issued and outstanding. The aggregate market value of the voting securities held by non-affiliates of the registrant as of the last business day of the registrant’s most recently completed third fiscal quarter, September 30, 2025, was approximately $30,343,050 based upon the closing sale price of $0.5845.
CENNTRO INC.
ANNUAL REPORT ON FORM 10-K
FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2025
Page
PART I
ITEM 1. Business 5
ITEM 1A. Risk Factors 23
ITEM 1B. Unresolved Staff Comments 53
ITEM 1C. Cybersecurity 53
ITEM 2. Properties 54
ITEM 3. Legal Proceedings 55
ITEM 4. Mine Safety Disclosures 56
PART II
ITEM 6. [Reserved] 57
ITEM 7A. Quantitative and Qualitative Disclosures about Market Risk 74
ITEM 8. Financial Statements and Supplementary Data 76
ITEM 9A. Controls and Procedures 76
ITEM 9B. Other Information 77
ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 77
PART III
ITEM 10. Directors, Executive Officers and Corporate Governance 78
ITEM 11. Executive Compensation 81
ITEM 14. Principal Accounting Fees and Services 88
PART IV
ITEM 15. Exhibits and Financial Statement Schedules 89
SIGNATURES 91
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ABOUT THIS ANNUAL REPORT
Unless the context otherwise requires, the terms “Cenntro,” the “Company,” “we,” “us,” “our” and similar terms used in this Annual Report on Form 10-K refer (i), prior to the Redomiciliation (as
defined herein) to Cenntro Electric Group Pty Limited (“CEGL”), an Australian corporation, and its subsidiaries, and (ii), following the Re-domiciliation, to Cenntro Inc., a Nevada corporation, and its subsidiaries (including Cenntro Electric Group
Pty Limited).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements regarding our business, financial condition, results of operations, and prospects. Words such as “expects,” “anticipates,”
“intends,” “plans,” “believes,” “seeks,” “estimates,” and similar expressions or variations of such words are intended to identify forward-looking statements but are not deemed to represent an all-inclusive means of identifying forward-looking
statements as denoted in this Annual Report on Form 10-K. Additionally, statements concerning future matters are forward-looking statements.
Although forward-looking statements in this Annual Report on Form 10-K reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us.
Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors
that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings “Risks Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of
Operations.” You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report on Form 10-K. We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains
reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials we file with the SEC at the SEC’s Public Reference Room at 100 F
Street, NE, Washington, D.C. 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Annual Report on Form 10-K, except as
required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this Annual Report on Form 10-K, which are designed to advise interested parties of the risks and factors that may affect
our business, financial condition, results of operations and prospects.
OTHER PERTINENT INFORMATION
This Annual Report contains our audited consolidated financial statements and related notes as of December 31, 2025 and 2024 and for the fiscal years ended December 31, 2025, and 2024 (“Audited
Financial Statements”). Our Audited Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). Our consolidated financial statements as of December 31, 2025 and for the years
ended December 31, 2025, and 2024, included in this Annual Report, are the consolidated financial statements of Cenntro and present periods prior to the Redomicile (as defined below). We refer to such financial statement as Cenntro’s “consolidated
financial statements.” References to “dollars,” “$,” “U.S. dollars” and “USD” refer to United States dollars.
On December 8, 2023, the Company effected a 1-for-10 reverse stock split, where the Company’s common stock began to trade on a reverse split adjusted basis. No fractional shares were issued in
connection with the reverse stock split and all such fractional interests were rounded up to the nearest whole number of shares of common stock.
On February 27, 2024, CEGL completed the redomiciliation of CEGL in accordance with the scheme implementation agreement, between CEGL and Cenntro (the “Redomiciliation”). As a result of the
Redomiciliation, the jurisdiction of incorporation of the ultimate parent company of the Cenntro group of companies was changed from Australia to Nevada, and CEGL became a subsidiary of the Company.
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The Redomiciliation was effected pursuant to a statutory scheme of arrangement under Australian law (the “Scheme”), whereby on February 27, 2024 (the “Implementation Date”), all of the issued ordinary
shares of CEGL were exchanged for newly issued shares of common stock of the Company, on the basis of one share of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) for every one ordinary shares of CEGL.
The Company’s Common Stock issued in the Scheme was exempt from registration under Section 3(a)(10) of the Securities Act of 1933, as amended (the “Securities Act”).
Prior to the Redomiciliation, CEGL’s ordinary shares were registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and were listed on the Nasdaq
Capital Market (“Nasdaq”).
Pursuant to Rule 12g-3(a) under the Exchange Act, as of the Implementation Date, the Company is the successor issuer to CEGL, the Company’s Common Stock is deemed to be registered under Section 12(b)
of the Exchange Act, and the Company is subject to the periodic and current reporting requirements of the Exchange Act and the rules and regulations promulgated thereunder.
The Company’s Common Stock began trading on Nasdaq at the start of trading on the Implementation Date under the symbol “CENN”, the same symbol under which CEGL’s ordinary shares were traded on Nasdaq
prior to the Implementation Date. The new CUSIP for the Company’s Common Stock is 150964104.
On April 13, 2026, the Company effected a 1-for-60 reverse stock split of its outstanding common stock (“Reverse Stock Split”). The Company’s common stock began trading on a split-adjusted basis on
such date. No fractional shares were issued, and all fractional shares were rounded up.
Unless the context specifically states or implies otherwise references in this Annual Report on Form 10-K to “we,” “us,” the “Company”, and “Cenntro” refer to Cenntro Inc. and its subsidiaries
including:
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PART I
Item 1. Business
Overview
We are an emerging designer, manufacturer, distributor, and service provider of commercial vehicles powered by either electricity or hydrogen energy sources. Our commercial vehicles are designed to
serve a variety of fleet and municipal organizations in support of city services, last-mile delivery and other commercial applications. As of December 31, 2025, we have developed six series of commercial vehicle models, Metro®, LogistarTM,
iChassisTM, AvantierTM, TeemakTM, Bison MotorTM and Antric One. We have successfully begun to produce and deliver these models into the global markets, apart from LogimaxTM.
We have also developed and introduced iChassisTM platform that consists of a programmable “smart” chassis that is currently used by third parties and integrated with their controlling software for
various autonomous driving commercial vehicle applications. We are also working on developing hydrogen-powered heavy-duty vehicles to meet the market demand. We continue to leverage our technology, vehicle development, and vehicle distribution
capabilities with a goal to become a leading provider in the electric commercial vehicle (“ECV”) market. Our greater mission is to provide commercial vehicles that may be powered by sustainable sources while building eco-chains to reduce carbon
dioxide for a better environment and quality of life.
With the global trend toward reducing the number of internal combustion engine (“ICE”) vehicles, electric-battery and fuel cell technologies stand out as strong alternatives. Prior to COVID-19,
battery costs significantly decreased over the past decade. We expect that over the long term, prices will continue to fall. According to research service Bloomberg NEF (“BNEF”), lithium-ion battery pack prices decreased from above $1,200 per
kilowatt-hour in 2010 to $132/kWh in 2021. In real terms, this represented a decline of approximately 89%. We anticipate that battery prices will continue to decrease in the long-term. BNEF further forecasts that average prices are expected to
fall by $3/kWh in 2025. Looking ahead, prices are expected to fall further over the next decade amid continued investment in R&D, manufacturing process improvements, and capacity expansion across the supply chain. Lithium prices are expected
to ease as more extraction and refining capacity comes online. Battery prices are forecast to drop in 2026, though it’ll be a smaller dip than 2025 due to high costs of raw materials and tariffs. The average price for a battery pack is expected
to fall 3% next year to $105 per kilowatt-hour, according to the BNEF survey in 2025. By emphasizing investments in technology, supply-chains, vehicle distribution and aftermarket support, we have begun making our own battery packs, preparing
battery cell production, by building up vehicle distribution and service networks, and introducing our cloud-based parts distribution systems. As investment in battery technology continues to increase, we believe these cost reductions outlined by
BNEF will continue to improve the economics of battery-powered ECVs, like ours.
In addition to our investment in battery packing operations, we have established an asset-light, distributed manufacturing business model through which we may distribute our vehicles in unassembled
semi-knockdown vehicle kits (“vehicle kits”) for local assembly in addition to fully assembled vehicles. Some of our vehicle models have a modular design that allows for local assembly in micro factory facilities that require less capital
investment. We manufacture our own vehicle kits for the Metro®, Teemak Series, and iChassis Series in our facilities in China and leverage the economies of scale of and the supply-chain availability in China to manufacture vehicle kits and fully
assembled vehicles in our assembly plants in the United States. We also establish business relationships to assembly vehicles from vehicle kits in Europe with local vehicle assembly facilities. We believe our distributed manufacturing methodology
allows us to execute our business plan with less capital than would be required by the traditional, vertically integrated automotive model and, in the long-term, drive higher profit margins.
Our distributed manufacturing model allows us to focus our efforts on the design of New Energy Vehicle (NEV) models and related technologies while outsourcing various portions of the manufacturing,
assembly and marketing of our vehicles to qualified third parties, allowing the Company to operate with lower capital investment than traditional vertically integrated automotive companies. For the past several years, we relied substantially on
private label channel partners to assemble and distribute the Metro® from vehicle kits that we manufactured in our facilities. Since 2021, we have expanded our vehicle portfolio beyond the Metro® by leveraging relationships with third party
Original Equipment Manufacturers (“OEMs”) manufacturing partners, who complete our vehicle kits and in some case fully assembled vehicles, with final assembly of vehicle kits performed in our own facilities in North America and Europe. Our
relationships with such third parties, our “manufacturing partners,” have allowed us to forego expensive capital investments in our own facilities and operate within our historic working capital limitations.
Throughout 2022 and 2023, we began to re-align our distribution and marketing strategy away from relying mainly on third-party channel partners to a distribution model that combines Company-operated
EV Centers with local distribution channels and dealer networks, with goals of improving overall operational efficiencies, product quality, brand value, market share, customer support and service.
During 2024 and 2025, the Company refined its distribution strategy to better align with regional market developments and long-term capital efficiency objectives. In European markets, where
competitive and macroeconomic conditions warranted a more asset-light approach, the Company transitioned from Company-operated EV Centers to a distribution partner-led model, enabling greater operational flexibility and more efficient deployment
of resources. In North America, the Company distributes its vehicles primarily through local dealer networks, supported by Company-operated EV Centers that serve as regional anchors for brand presence, customer service, and after-sales support,
with local assembly facilities maintained in Barstow, California and Freehold, New Jersey. The resulting blended model, a dealer-led distribution network complemented by Company-operated EV Centers in North America, and a channel partner-driven
approach in international markets, reflects the Company’s ongoing commitment to optimizing its go-to-market strategy in response to the specific commercial opportunities and challenges of each market region.
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Corporate Structure and History
Cenntro Inc. was incorporated in the State of Nevada on March 9, 2023, under The Nevada Revised Statutes (the “NRS”). Our principal executive offices are located at 33 Wood Avenue South, Suite 600,
PMB #3572 Iselin, New Jersey, 08830, and our telephone number is (732) 820-6757. Our current registered office and current principal place of business in Nevada are located at 701 S. Carson Street, Suite 200, Carson City, NV 89701. Our website
address is www.cenntroauto.com.
Cenntro is a holding company incorporated in Nevada and headquartered in New Jersey. As a holding company with no material operations of its own, Cenntro Inc. conducts operations through its
subsidiaries in the United States, Australia, Europe, Mexico, Hong Kong, the Dominican Republic, and in the People’s Republic of China, which we refer to as the PRC or China.
On November 5, 2021, our predecessor Naked Brand Group Limited (“NBG”) entered into an acquisition agreement with Cenntro Automotive Group Limited (“CAG”) to effect a combination through reverse
merger which occurred on December 30, 2021 (the “Combination”), whereby NBG purchased ordinary shares of CAG to effect the Combination using 174,853,546 ordinary shares (the “Acquisition Shares”) serving as good and valuable consideration.
Immediately after the closing of the Combination, we changed our name from “Naked Brand Group Limited” to “Cenntro Electric Group Limited” and the business conducted by Cenntro became the business conducted by the Company. The transaction was
accounted for as a reverse recapitalization in which Cenntro was determined to be the accounting acquirer.
On February 27, 2024, our predecessor CEGL, a public company incorporated under the laws of Australia completed the Redomiciliation of CEGL. As a result of the Redomiciliation, the jurisdiction of
incorporation of the ultimate parent company of the Cenntro group of companies was changed from Australia to Nevada, and CEGL became a subsidiary of the Company.
Prior to June 30, 2022, the Company historically qualified as a ‘foreign private issuer’ for purposes of reporting under the Exchange Act and filing registration statements under the Securities Act.
As of June 30, 2022, or the end of the Company’s second fiscal quarter in 2022, the Company ceased to qualify as a “foreign private issuer” as defined in Rule 405 under the Securities Act and Rule 3b-4 under the Exchange Act. Accordingly,
effective as of January 1, 2023, the Company became obligated to file reports with the SEC as a “domestic issuer” under the Securities Act.
The following diagram illustrates our current corporate structure as of the date of this Annual Report:
On March 22, 2013, Cenntro Motor Corporation (“CMC”) was registered in the State of Delaware. Mr. Peter Wang was the founder and sole director of CMC. CMC conducted business to design and develop
electric utility vehicles.
On January 28, 2014, Cenntro Automotives Group Limited (“CAG BVI”) was formed in British Virgin Islands to conduct electric vehicle (“EV”) related business worldwide outside of U.S.A. On January 29,
2014, CAG BVI acquired CMC. CMC changed its name from “Cenntro Motor Corporation” to “Cenntro Motors Corporation” on August 5, 2014, and further changed from “Cenntro Motors Corporation” to “Cenntro Automotive Corporation” on October 7, 2014.
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On July 20, 2015, CAG BVI acquired Sinomachinery Equipment Limited, a Hong Kong corporation with its manufacturing subsidiary in PRC, Zhejiang Sinomachinery. Sinomachinery Equipment Limited was
renamed Simachinery Equipment Limited on November 2, 2015. Zhejiang Sinomachinery registered Zhejiang Xbean Tech Co. Ltd. in PRC on December 28, 2016.
On August 22, 2014, Cenntro Motors Group Limited was formed in Cayman Islands, which was renamed as Cenntro Automotive Group Limited (“CAG Cayman”) on October 15, 2014.
On February 15, 2016, CAG Cayman formed its subsidiary, CAG HK (formerly Cenntro Automotive (Hong Kong) Limited), in Hong Kong. On March 2, 2016, CAG HK changed its name to “Cenntro Automotive Group
Limited”. Subsequently CAG HK took over all Hong Kong and mainland China subsidiaries of CAG Cayman.
On May 6, 2015, CAG HK registered Autotech in PRC.
On May 26, 2016, CAG Cayman merged with CAG BVI and CAG Cayman being the surviving entity. After the merger, all shareholders of CAG BVI automatically became the shareholders of CAG Cayman and the
percentage of ownership unchanged. CAG Cayman inherited and took over all existing rights, assets and liabilities of CAG BVI. Subsequently CAG BVI was closed and cancelled. CAG Cayman became the controlling parent company to continue carrying out
the business plan and operations.
In August 2016, Autotech acquired 100% equity interest of Hengzhong Tech in PRC.
On June 5, 2017, CAG HK registered Ronda in PRC.
In January 2018, Autotech acquired 100% equity interest of Shengzhou Machinery in PRC.
On December 19, 2018, CAG HK registered Tooniu (formerly Zhejiang Tooniu Tech Co., Ltd.) in PRC, which was relocated and renamed Jiangsu Tooniu Tech Co., Ltd. on November 24, 2022.
On January 20, 2021, CAG HK registered Zhejiang Machinery in PRC to take over and replace Shengzhou Machinery, which is now dormant.
On March 3, 2022, CEGI acquired 100% shares of CEGE (formerly Blitz F22-1 GmbH), a shell company registered on January 13, 2022 in Germany. On November 24, 2023, CEGI transferred 100% shares of CEGE
to CEBV.
On March 23, 2022, CEGI acquired 65% of equity interest in CAE (formerly Tropos Motors Europe GmbH), a wholly owned subsidiary of Mosolf SE & Co. KG, a limited liability partnership incorporated
under the laws of Germany, (“Mosolf”). On January 31, 2023, CEGI further acquired from Mosolf the remaining 35% equity interest in CAE.
On May 23, 2022, we dissolved both of our previously dormant Nevada subsidiaries Naked Brand Group, Inc. and Naked Inc.
On June 8, 2022, Cennatic was incorporated under the laws of the state of Delaware as a wholly-owned subsidiary of CAC. Cennatic in turn incorporated Cennatic MX in Mexico on August 24, 2022. CAC
later transferred all shares in Cennatic Power to CEGI on September 30, 2022.
On November 30, 2022, CAC set up CEG DOM, a 99% owned subsidiary in Dominican Republic.
On December 12, 2022, CEGI incorporated its fully subsidiary CEBV in the Netherlands. CEBV further established CEA, a wholly-owned subsidiary in Turkey on February 21, 2023.
On December 16, 2022, CEGE invested in Antric GmbH (“Antric”) and became a 25% shareholder of Antric. On August 31, 2023, CAE acquired the other 75% shares of Antric from Eric Diederich and Moritz
Heibrock, the original founders of Antric.
On January 16, 2023, CAC incorporated its wholly-owned subsidiary CA COL in Colombia.
On January 31, 2023, CEGI incorporated its wholly-owned subsidiary Teemak in the state of Delaware. On May 17, 2023, Teemak formed its wholly-owned subsidiary Teemak HK in Hong Kong. On March 6,
2025, Teemak changed its name to Bison Motors Inc.
On February 14, 2023, CEGI acquired all shares of Avantier, a company incorporated on November 17, 2017, in the state of Delaware with no operations at nil consideration. On March 13, 2023, Avantier formed its
wholly-owned subsidiary Avantier HK in Hong Kong.
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On March 29, 2023, CAC incorporated its wholly-owned subsidiary, CE COL, in Colombia.
On May 8, 2023, CEBV established its wholly-owned subsidiary, CEV Italy, in Italy.
On May 19, 2023, CEBV acquired 100% of equity interest in CE SPAIN in Spain from an individual Don Yong Wang.
On May 31, 2023, Zhejiang Xbean Tech Co., Ltd. was deregistered.
On August 3, 2023, CEGI incorporated its wholly-owned subsidiary, PEC, in the state of Delaware.
On August 24, 2023, CEGI incorporated its wholly-owned subsidiary, CTC, in the state of California.
On March 9, 2023, Cenntro Inc. was incorporated under the laws of the state of Nevada.
On February 27, 2024, pursuant to the Redomiciliation CEGL became a wholly-owned subsidiary of Cenntro Inc. As a result of the Redomiciliation, the jurisdiction of incorporation of the ultimate
parent company of the Cenntro group of companies was changed from Australia to Nevada, and CEGL became a subsidiary of the Company.
On June 23, 2021, Hangzhou Ronda acquired 20% interest of Hangzhou Hezhe Energy Technology Co., Ltd. (“Hangzhou Hezhe”). On May 8, 2024, the Company entered into a new equity investing agreement to
acquire another 60% of Hangzhou Hezhe’s equity interest. On July 15, 2025, Hangzhou Hezhe incorporated its wholly-owned subsidiary, Hangzhou Hezhe International Trading co., Ltd.
On April 24, 2025, Cenntro Automotive Corporation disposed of all its remaining equity interests in Cenntro Electric CICS, S.R.L, and the entity is no longer owned or controlled by Cenntro Group.
On September 22, 2025, CE SPAIN changed its corporate name to Avantier Motors Spain, S.L., which was registered with the Mercantile Registry on November 26, 2025.
On October 22, 2025, Zhejiang Sinomachinery Co., Ltd. was deregistered.
On November 12, 2025, Shengzhou Cenntro Machinery Co., Ltd. was deregistered.
On January 1, 2026, Cenntro Inc. incorporated its wholly-owned subsidiaries, Averra Electric Mobility Inc and Autotrax.ai Inc. in the state of Delaware.
On January 14, 2026, Cenntro EV Center Italy S.R.L. was deregistered.
Holding Foreign Companies Accountable Act
Pursuant to the Holding Foreign Companies Accountable Act (the “HFCAA”), if the Public Company Accounting Oversight Board (the “PCAOB”), is unable to inspect an issuer’s auditors for three
consecutive years, the issuer’s securities are prohibited to trade on a U.S. stock exchange. The PCAOB issued a Determination Report on December 16, 2021 (the “Determination Report”) which found that the PCAOB was unable to inspect or investigate
completely registered public accounting firms headquartered in: (1) mainland China of the People’s Republic of China because of a position taken by one or more authorities in mainland China; and (2) Hong Kong, a Special Administrative Region and
dependency of the PRC, because of a position taken by one or more authorities in Hong Kong. Furthermore, the Determination Report identified the specific registered public accounting firms which are subject to these determinations. On December
23, 2022, United States Senate passed the Accelerating Holding Foreign Companies Accountable Act (the “AHFCAA”), which amended the HFCA Act by requiring the SEC to prohibit an issuer’s securities from trading on any U.S. stock exchanges if its
auditor is not subject to PCAOB inspections for two consecutive years instead of three. If trading of our shares of Common Stock is prohibited under the HFCA Act in the future because the PCAOB determines that it cannot inspect or fully
investigate our auditor at such future time, Nasdaq may determine to delist our Common Stock.
On August 26, 2022, the PCAOB signed the SOP Agreements with the CSRC and China’s Ministry of Finance. The SOP Agreements established a specific, accountable framework to make possible complete
inspections and investigations by the PCAOB of audit firms based in mainland China and Hong Kong, as required under U.S. law.
On December 15, 2022, the PCAOB announced its completion of inspections and investigations of PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong in 2022.
Accordingly, the PCAOB vacated its Determination Report. As a result, we do not expect to be identified as a “Commission-Identified Issuer” under the HFCAA for the fiscal year ended December 31, 2022, after we file our annual report on Form 10-K
for such fiscal year. However, whether the PCAOB will continue to conduct inspections and investigations of PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong completely to its satisfaction is subject to
uncertainty and depends on several factors out of our, and our auditor’s, control. Such factors include positions taken by authorities of the PRC. We expect the PCAOB will continue to demand complete access to inspections and investigations to
accounting firms headquartered in mainland China and Hong Kong in the future and the PCAOB has stated that it has made plans to resume regular inspections in early 2023 and beyond.
Under the HFCAA, the PCAOB is required to make its determination on an annual basis with regards to its ability to fully inspect and investigate accounting firms based in mainland China and Hong
Kong. The possibility of being a “Commission-Identified Issuer” under the HFCAA and risk of delisting could continue to adversely affect the trading price of our securities. Should the PCAOB again encounter impediments to inspections and
investigations in mainland China or Hong Kong as a result of positions taken by any authority in either jurisdiction, the PCAOB will issue new determinations under the HFCAA as and when appropriate.
Our current auditor, GGF CPA LTD (“GGF”), (fka Guangzhou Good Faith CPA LTD), the independent registered public accounting firm that issues the audit report included in this annual report on Form
10-K, as a firm registered with the PCAOB (PCAOB ID:2729), is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. GGF, whose audit report is
included in this report, is headquartered in Guangzhou, China. While our auditor is based in the PRC and is registered with PCAOB and subject to PCAOB inspection, in the event it is later determined that the PCAOB is unable to inspect or
investigate completely the Company’s auditor because of a position taken by an authority in a foreign jurisdiction, then such lack of inspection could cause trading of our securities to be prohibited under the HFCA Act, and ultimately result in a
determination by a securities exchange to delist the Company’s securities. The PCAOB continues to demand complete access in mainland China and Hong Kong moving forward and resumed regular inspections in 2023 and beyond, as well as to continue
pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated that it will act immediately to consider the need to issue new determinations with the HFCA Act, if needed.
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Transfers of Cash to and from Our Subsidiaries
Cash transfers through the Company since inception are primarily attributed to: 1) capital contribution from CEGL to its subsidiaries; 2) shareholder loans from CEGL to its subsidiaries; or 3) payment from one group
company to another through intercompany transactions. During the year ended December 31, 2025, the total material cash transfer of other assets within the organization was approximately USD 2,598,709. An aggregate amount of USD 1,809,922 was
transferred from operating subsidiaries to the holding companies as repayment to intercompany advances. As of the date of this Annual Report, none of our operating subsidiaries have made any dividend or distributions to the holding company or
through the intermediate holding companies, or to investors including U.S. investors.
Our subsidiaries are permitted to pay dividends to us only out of their accumulated profits. Additionally, each of our subsidiaries in the PRC must make appropriations from after-tax profit to a
statutory surplus reserve fund. The reserve fund requires an annual appropriation of 10% of after-tax profit (determined under accounting principles generally accepted in the PRC at each year-end) after offsetting accumulated losses from prior
years until such reserve reaches 50% of the subsidiary’s registered capital. The reserve fund can only be used to increase the registered capital and eliminate further losses of the respective companies under PRC regulations. These reserves are
not distributable as cash dividends, loans or advances. A PRC company cannot distribute any profits until any losses from the prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together with
distributable profits from the current fiscal year. Total restrictions placed on the distribution of the Company’s PRC subsidiaries’ net assets were approximately $28.5 million, or 72% of the Company’s total consolidated net assets as of December
31, 2025.
In addition, under the regulations of the State Administration of Foreign Exchange of the PRC (“SAFE”), Renminbi is not convertible into foreign currencies for capital account items, such as loans,
repatriation of investments, and investments outside of China, unless the prior approval of the SAFE is obtained and prior registration with the SAFE is made.
Our Industry
The ECV Market
According to a July 2025 report by Precedence Research, the global EV market was valued at approximately $988.70 billion in 2025 and is projected to reach approximately $2,529.10 billion by 2034, representing a
compound annual growth rate of 11% from 2025 to 2034. Factors such as increases in demand for fuel-efficient, high-performance and low-emission vehicles, along with stringent government rules and regulations toward vehicle emissions are
expected to drive the growth of the electric vehicle market. In comparison, IMARC Group projects the global electric commercial vehicle (ECV) market to reach revenues of $190.9 billion in 2025, with a steady annual growth rate (CAGR 2025-2033)
of 25.56%, reaching $1,298.26 billion by 2033.
Many governments around the world, including the United States, China, Germany, and various other European countries, are regulating vehicle emissions and fuel economy standards and offering incentives to commercial
and government operators to purchase more energy efficient vehicles. The mitigation of greenhouse gas emissions from internal combustion engine (“ICE”) vehicles is an integral part of various nations’ strategies to meet the objectives of the
2015 Paris Agreement, which the United States rejoined in February 2021. As of the date of this Annual Report, a growing number of countries have made announcements regarding their intention to phase out ICE vehicles include the following:
• France: Aims to phase out ICE vehicle sales by 2040;
• Japan: Incentive program in place for EV and hybrids sales; and
• United Kingdom: Ban the sale of new ICE cars starting in 2035.
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In the United States, the former Biden administration announced plans to achieve net-zero emissions economy-wide by 2050. In 2021, President Biden signed an executive order to replace over 600,000
civilian federal vehicles with U.S.-made zero-emission models and set a target to make half of all new vehicles electric by 2030. The administration also aimed to install over 500,000 EV chargers nationwide and expand tax credits and incentives
for EVs and related manufacturing. In November 2021, President Biden signed a $1.2 trillion infrastructure bill, which included $7.5 billion for EV charging infrastructure and $6 billion for domestic battery production and recycling. In August
2022, the Inflation Reduction Act was enacted, offering a 30% tax credit for commercial ECVs and allocating additional funds under the Diesel Emission Reduction Act to support the commercial EV market. While federal policy support varies, many
states are independently driving EV adoption through financial incentives, emissions regulations, and infrastructure investments. Several states in the United States have also announced the ban of new ICE
vehicles including California and New York by 2035. The state of California is leading the nation with stringent emission standards and a target to phase out the sale of new gas-powered cars by 2035. The California Clean Vehicle Rebate Project
(CVRP) offers rebates of up to $7,500 for EV purchases.
Incentive programs and new regulations affecting passenger and commercial vehicles vary by country. However, there is strong sentiment to reduce global greenhouse gas emissions from leading
governments. For heavy-duty vehicles, the European Union mandated a 15% reduction in CO2 emissions (from 2019 levels) by 2025 and a 30% reduction target (from 2019 levels) by 2030. Also, by 2025, manufacturers will be required to ensure that at
least a 2% market share of the sales of new vehicles is made up of zero-and-low-emission vehicles to counteract steadily increasing road traffic emissions. For light-duty vehicles, the European Union has mandated a 15% reduction in CO2 emissions
by 2025 and a 31% reduction target by 2030. The European Union may impose financial penalties on vehicle manufacturers for failure to achieve certain CO2 emission targets imposed on such manufacturers, with such penalties scaling upward based on
the level of CO2 emission exceedance for their vehicles. We believe that increasing government regulations and incentives, together with shifting consumer preferences, will encourage significant growth in the market for ECVs.
The Hydrogen Vehicle Market
The global hydrogen vehicle market is projected to experience significant growth over the next few decades, driven by government incentives, advancements in fuel cell technology, and increasing
environmental regulations. According to Markets and Data, the market is forecasted to grow at a CAGR of 31.94% from 2025 to 2032, reaching approximately $19.92 billion by 2032. According to Fortune Business Insights, the market is segmented by
range, with long-range hydrogen vehicles (above 500 miles) expected to see the highest growth due to demand for commercial fleets, trucks, and intercity buses. The North American market, led by California, is also seeing growth due to strong
policy support and investments in refueling infrastructure.
United States: The Bipartisan Infrastructure Law has allocated $9.5 billion for clean hydrogen development, with additional state-level incentives such as California’s Clean Vehicle Rebate Project
and the Low Carbon Fuel Standard.
European Union: The EU Hydrogen Strategy aims to install at least 40 GW of electrolyzer capacity by 2030. Countries like Germany, France, and the UK have introduced grants and tax incentives to
promote hydrogen mobility.
China: The government offers subsidies of up to $19,000 per hydrogen vehicle and aims to deploy 1 million fuel cell vehicles by 2035.
Japan & South Korea: These nations provide heavy incentives for hydrogen infrastructure and have ambitious targets for fuel cell vehicle adoption and refueling stations expansion
Last-mile Delivery and City Services
The last-mile delivery market in the United States and the European Union is quickly expanding, driven by the rapid growth in the e-commerce industry resulting from consumer preference for faster
deliveries, significant increases in online purchases after 2020 and governmental focus on low emission urban logistics models. We believe consumer behavior will accelerate the online transformation of retail businesses and the expected need for
efficient last-mile delivery ECVs.
We believe there is a growing sustainability trend among companies to reduce their carbon footprint and incorporate ECVs into their commercial delivery fleets. A number of well-established
companies, such as Amazon, FedEx, UPS and Walmart, have made announcements about their intentions to reduce CO2 emissions and/or become carbon-neutral by a specified future date. A number of these companies have committed to purchase large
quantities of ECVs (some of which are not yet commercially available) to transition their fleets over the next several years, with a focus on enhancing their last-mile delivery services, as well as lowering their operating costs, all while
reducing their carbon footprint.
Our Products
As an electric commercial vehicle (“ECV”) provider, we have developed a full line of vehicle models to meet the market demand and fit various commercial needs and applications. As of the date of this Annual Report,
we offer six series of commercial vehicle models and some electric charged products that are ready to be sold on the global markets. We are also developing second generation hydrogen fuel cell Class 8 semi-tractor and have assembled the first
prototype in California.
The Metro®
The Metro® is a customizable ECV used in commercial applications such as city utility services (i.e., street cleaners, firetrucks and garbage trucks) and last-mile delivery. The Metro® was “born
electric,” meaning that, unlike many other ECVs that are converted from existing ICE designs, the Metro® was purpose-built from inception to be highly energy efficient and providing for a greater range, implementing a number of proprietary design
elements, including a lightweight structure and efficient power system.
The Metro® chassis is designed with a unique cab-forward feature. By moving the cab of the Metro® forward over the front wheels, we have been able to increase its cargo volume ratio and decrease the
cost of materials used in its manufacturing. In addition, the chassis of the Metro® has been designed to support a variety of fittings, allowing the vehicle to be used for a number of different applications, which we believe is a feature rarely
offered by other ECV manufacturers and gives us the opportunity to market the Metro® to a wider array of potential end-users. We believe our lightweight chassis structure and cab-forward design of the Metro® enable greater payload and cargo
volume with lower vehicle weight and smaller vehicle size, compared to other like-size ECVs. Our modular vehicle design enables us to manufacture a wide range of variations of Metro® models around a uniform chassis structure.
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The Metro® complies with all applicable vehicle safety standards related to light-duty commercial vehicles in North America and the Asian and European countries in which it is sold. The Metro® has
passed N1 homologation requirements in Asia. We have obtained EU Small Series Type Approval for our new model of the Metro® under N1 vehicle classification, which includes an annual sales limitation of 1,500 units into the European Union market.
In the United States, the Metro® qualifies as a Neighborhood Electric Vehicle (an “NEV”) with low-speed modifications, and, as a result, is not required to pass the United States high speed front-end impact test. NEVs are built to have a top
speed of 25 miles per hour (40 km/h) and have a maximum loaded weight of 3,000 lbs. (1,400 kgs) and are classified by the United States Department of Transportation as low-speed vehicles. This qualification generally limits the Metro® to roads
with posted maximum speed limits of 35 miles per hour (56 km/h). Under the EU Small Series N1 Type Approval, the Metro® does not have comparable speed limitations in the European Union.
We offer the Metro MR, an electric compact utility vehicle designed for last-mile delivery and urban logistics applications, particularly in densely populated environments. The Metro MR features a
compact form factor and is designed to support efficient operations in narrow streets and high-traffic urban areas, making it suitable for applications such as parcel delivery, food distribution, and municipal services. We have developed
customized versions of the Metro MR tailored to specific regional requirements, including the Japanese market, where regulatory standards and operational conditions differ from other regions. In January 2025, we announced that we secured an order
for 500 customized Metro MR vehicles for delivery in Japan, reflecting demand for small-format electric commercial vehicles in urban markets and supporting our expansion into Asia.
LogistarTM Series
LogistarTM Series are the vehicles for on-road applications with the gross vehicle weight rate (“GVWR”) under 19,500 lbs. It consists of Logistar 100 (LS100), Logistar 200 (LS200), Logistar 210
(LS210), Logistar 260 (LS260), Logistar 300 (LS300), Logistar 400 (LS400), and Logistar 450 (LS450). LS100, LS200, LS210, and LS260 meet with European Union regulatory requirement and are mainly targeted for European markets, and LS300, LS400 and
LS450 meet with U.S. regulatory requirements and are mainly targeted for North American markets.
We have introduced the LogistarTM 450 (LS450) both in U.S. and Europe markets since 2024. It is classified as Class 4 truck in US and as M2 Type
in Europe. LS450 has four different configurations (versions), Cab-chassis version, cargo truck version, delivery van version, and passenger van version. The cab-chassis version, cargo truck version, and delivery van version are targeted at
US markets and passenger van version is targeted at Europe markets. We have completed compliances with DOT requirements in 2023 and received certificate from EPA on September 14, 2023, CARB GHG certificate from CARB on December 14, 2023, and
CARB ZEP certificate from CARB on May 24, 2024. Currently our LS450 passenger version is sold with an OEM arrangement with QEV. In 2025, we successfully delivered 99 units of our Logistar® 450P electric buses to QEV Technologies, S.L. in
Europe. The LS450P units are part of a larger order received in early 2025 and represent a collaborative development between Cenntro and QEV. The LS450P is designed for short-distance shuttle and public transportation applications and has
obtained European Union M2 Type Approval, enabling our deployment across European markets. We intend to continue production and delivery of additional units to fulfill the remaining order and to support further demand in Europe and other
markets.
In the United States market, during 2025 we continued to advance the commercialization of the LS450 as a Class 4 battery-electric commercial vehicle targeting fleet and commercial operators. We delivered 12 units
of the LS450 in the U.S. market during 2025, with sales concentrated in cargo truck and delivery van configurations.
In addition, we have made significant progress in securing government incentive support for the LS450 through the New York Truck Voucher Incentive Program (“NYTVIP”), a rolling voucher program administered by the
New York State Energy Research and Development Authority (“NYSERDA”) that is designed to reduce the acquisition cost of zero-emission medium- and heavy-duty commercial vehicles. The LS450 has been confirmed as a fully eligible vehicle under the
NYTVIP program as a Class 4 zero-emission battery electric vehicle. As of the date of this Annual Report, a total of 55 LS450 units have been submitted for NYTVIP approval through our authorized dealer network, with all applications having
entered the review stage without deficiency notices or documentation challenges. Based on the applicable incentive structure for Class 4 vehicles, the estimated aggregate subsidy amount for the submitted applications is approximately $6.7
million, subject to final administrative approval. The Company believes the subsidy is highly probable of realization given the vehicle’s eligibility status, the non-competitive rolling-allocation funding structure of the program, and the
current clean submission status of all pending applications. We believe participation in the NYTVIP program meaningfully enhances the commercial attractiveness of the LS450 to fleet operators in New York State and supports our broader U.S.
market development efforts.
The LogistarTM 400 is a medium-duty electric commercial truck designed to meet the delivery requirements of tier 1 logistics companies as well as upfitters. The LogistarTM 400 is a U.S. Class 4 (over 14,000 lbs.) truck
under U.S. truck classification. It can be configured as a delivery van or a shuttle bus or equipped with a cargo box or a truck bed. In addition, the LogistarTM 400 can be upfitted for different applications of city service, such as a vending
truck, fire truck, garbage truck and repair truck. We expect that the most common use of the LogistarTM 400 will be for intra-city delivery. The LogistarTM 400 has a cargo volume that is over three times the cargo volume of the Metro® and a
payload capacity more than seven times the payload capacity of the Metro®. On June 23, we received certification for our LS400 by the California Air Resources Board (“CARB”) as a zero-emission vehicle in the state of California. The
certification is awarded to vehicle manufacturers who meet specific emissions standards in compliance with California Air Resources Board (“CARB”) regulations. In December 2022, the LS400 previously received its certificate of conformity from
the United States Environmental Protection Agency (“EPA”). Because we received credentials from both CARB and the EPA, we can now sell our LS400 in every state throughout the U.S.
In December 2023, the LS400 received approval from the California Air Resources Board (“CARB”) to participate in California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project
(“HVIP”) in the state of California, providing a $60,000 point-of-sale voucher for the Company’s customers. The LS400’s certification as a zero-emission vehicle cleared the way for the LS400 to be approved for participation in the HVIP.
The approval to participate in the HVIP program is awarded to vehicle manufacturers, like Cenntro, that meet specific on-road zero-emission powertrain standards in compliance with CARB regulations.
California’s HVIP incentive program is intended to advance adoption and commercialization of fleet vehicles, helping to reduce the total cost of ownership of hybrid and zero-emission commercial vehicles in the state of California. On December 27,
2024, we received notice from California’s HVIP incentive program that our LS400 model has been removed from HVIP eligibility. We are actively working with HVIP to address vehicle eligibility.
We have also designed the LogistarTM 200, a multi-purpose vehicle customized for transporting light goods specifically for the EU market. The LogistarTM 200 is designed to qualify as an N1 category
truck in the European Union and is available in three models: (i) as a van, (ii) as a flat-bed truck, and (iii) as a cargo truck. Each of the three models is specialized for last-mile delivery, city delivery and city services. We completed
homologation of the LogistarTM 200 in the European Union in January 2022 and it is commercially available in the EU market, and countries that adopt EU vehicle homologations. We introduced the LS210 model in October 2024, following its successful
homologation in the European Union on May 10, 2024. While the LS210 maintains similar specifications to the LS200, it features significant improvements and new capabilities. The LS210 is an upgrade of the LS200, and replaced the market of LS200
in 2025. We sold 120 LS210s during the year of 2025.
The LogistarTM 260, or LS 260, is positioned above the LogistarTM 200 model and defines a new size in
the van segment. With dimensions of 5.50 meters long, 1.85 meters wide and a height of 2 meters, the LS 260 offers a cargo space of 7.5 cubic meters or 265 cubic feet, two side loading doors and convenient rear doors with a loading opening of
up to 270°. The load volume, payload and range of the LogistarTM 260 will be targeted for a wide range of applications in the trades, couriers, express and parcel services, logistics solutions, and facility management. In 2025, the LS 260 passed
all homologation tests in accordance with European Union (EU) standards and requirements and received EU type approval. We sold 27 LS260s during the year 2025 in the EU market.
The LogistarTM 100, or LS 100, is a versatile, compact light cargo van purpose-built to serve diverse commercial applications, especially in population-dense urban areas. The vehicle has a range
of 74 miles (118 kilometers) (WLTP), 1151 lbs. (525 kg) of payload, and a cargo capacity of 73.3 cubic feet (2 cubic meters). The combination of its cargo space and multiple entry points at the side and rear of the vehicle makes the LS100 ideal
for multiple applications, including package delivery, trade and maintenance services, hospitality, and catering. The LS100 completed all homologation tests in compliance with the standards and requirements of the European Union (EU) in July and
received type approval from the EU in August. As a result, and as of the date of this Annual Report, the LS100 is eligible for sale in all 27 EU member states and other countries that adopt EU vehicle homologation standards.
We have decided to discontinue marketing and selling the LS100 product line as part of our strategic shift toward heavier commercial vehicles. Once we complete selling our remaining LS100
inventory, we will focus on serving our commercial vehicle customers who require heavier-duty trucks.
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In January 2023, we introduced the LogistarTM 300 (LS300) in a full-size van segment. The LS 300 sets a new benchmark for all electric commercial work trucks. This model boasts 370 cubic feet of storage space and a
payload of 3307 lbs. along with a range of 270 miles. The vehicle can also be made available either as a van or as cab chassis that may be customized. On March 1, 2024, we received EPA certification and on June 21, 2024, we received California
CARB certification for LS300. In July 2024, we assembled LS300DV (delivery van version) and LS300C (cargo truck version) in our Barstow Facility and introduced them in US West Coast markets.
TeemakTM Series
Our TeemakTM Series are off-road vehicle models for field utility applications, including The TeemakTM and TeemakTM TB. The TeemakTM is designed for off-road applications for utility or leisure use. The
TeemakTM TB is designed for agricultural and forestry uses and currently meets all EU vehicle type regulatory requirements. Following a strategic pause in production to realign resources toward our heavy truck series in 2024, we recommenced active
research and development of an enhanced TeemakTM Series during 2025, incorporating product improvements informed by accumulated field experience and evolving customer requirements in the off-road utility segment. We anticipate launching the
enhanced TeemakTM Series in the fourth quarter of 2026, targeting primarily the North American market. Development efforts in 2026 will focus on further improving product quality, electric powertrain performance, and application-specific
capabilities to broaden the series’ suitability across diverse off-road operating environments, including utility, agricultural, and forestry use cases.
AvantierTM Series
The AvantierTM Series are our micro ECV models. This series includes two vehicle models, the AvantierTM c and the AvantierTM α.
They are smaller in size and are purpose-built for dense urban uses. The AvantierTM c is a two-seater utility ECV while AvantierTM α is a four-seater passenger EV.
In 2024, we introduced two new models to the Avantier Series: the Avantier Ex and Avantier Commuter. The Avantier Ex is similar to the Avantier c but offers more competitive pricing. The Avantier Commuter, also a four-seat, five-door passenger
EV, features a larger size, with 50kw power and an estimated range of up to 320 kilometers on a single charge. Both new models target markets outside the USA. We received European Union Type M1K approval for the Avantier Commuter on August 21,
2024, and European Union Type LS7e approval for the Avantier Ex on January 15, 2025.
Antric One
The Antric One is a cargo bike designed for last mile city logistics. It is especially designed for- and useful in narrow city streets and pedestrian zones. One unique selling proposition for the Antric One compared
to other vehicles is, that the Antric One is a cargo-bike. Thus, no driver’s license is required to operate it and the Antric One is permitted to use bike lanes, which makes the vehicle particularly agile in dense city centers. Another
advantage includes the Antric One’s exchangeable batteries. A battery-swap for the Antric One takes less than a minute and each swap enables the driver to ride for approximately 50 km. Compared to other cargo bikes the Antric One has a robust
construction, cargo volume and payload (>2m3 volume, 270kg payload in the container). The production for Antric One began in November 2022. The production of our advanced version of the Antric One commenced in February 2024. We anticipate
the advanced version of the Antric One to be less expensive to produce while maintaining its high quality. We intend to include new features to this second generation Antric One that will make riding easier and more comfortable.
Cenntro iChassisTM
We also developed Cenntro iChassisTM, which was previously referred to as the ePorteeTM, an open-platform and programmable (‘smart’) chassis product. The iChassisTM is designed to be a basic modular
building block for use by automakers and special vehicle upfitters in the design of automated or autonomous driving vehicles.
Through our advancements in vehicle digitization and digital control (‘drive-by-wire’) capabilities, we commercially launched this product as an industry pioneer. The Cenntro iChassisTM allows
third-party developers to integrate detection devices (i.e., lidar, radar, ultra-sound, infrared and other sensory devices) and third-party or proprietary decision-making software to permit vehicles based on the programmable chassis to be driven
autonomously. We sold 176 iChassis in 2025.
Bison Motors (BM860H)
We continue to expand our product portfolio with the development of advanced zero-emission commercial vehicles, including our second-generation hydrogen fuel cell Class 8 semi-tractor, the BM860H, developed by our
subsidiary, Bison Motors Inc., announced in August 2025, completed assembly and testing derived successful in December 2025. The BM860H builds on the foundation of its predecessor with key performance enhancements, powered by a 210kW hydrogen
fuel cell system and designed to provide an estimated driving range of up to 528 miles under full payload conditions, while enabling rapid refueling and producing zero emissions. The BM860H meets all applicable Federal Motor Vehicle Safety
Standards (“FMVSS”) and has received certification from the U.S. Environmental Protection Agency (“EPA”), with certification from the California Air Resources Board (“CARB”) currently under review. Key components for the BM860H are sourced
primarily from U.S.-based manufacturers, with final assembly taking place at our production facility in Southern California.
Emerging and Next-Generation Products
Beyond our current vehicle lineup, we maintain a pipeline of next-generation energy and power technology products under development, reflecting our broader strategic vision to address evolving
energy infrastructure challenges. These initiatives include methanol-based hydrogen generation systems designed to provide on-site hydrogen supply for hydrogen fueling stations, remote charging stations, and off-grid power installations —
offering a practical solution to the logistical challenges of hydrogen transportation and the limitations of grid transmission capacity in certain regions of the United States. In addition, the Company has successfully developed and validated
solid-state battery manufacturing capabilities, which we believe represent a significant advancement in energy density and safety for next-generation electric vehicle applications. We are also advancing a range of product development initiatives
across multiple applications in new energy charging, energy storage, and energy efficiency. The Company intends to leverage these technology reserves to expand its product portfolio and addressable market opportunities in the coming years, as
commercial and regulatory conditions continue to support the transition toward cleaner energy solutions.
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Our Product Development and Manufacturing Process
Our capability of vehicle development is at the core of what we believe positions us to compete effectively in the ECV market. Since inception in 2013 through December 31, 2025, we have spent
approximately USD94.4 million in research and development activities related to our operations, developing various technologies and products, including the following:
Vehicle Development
We have allocated resources and efforts for vehicles that we believe the market demands. We have developed and maintained five vehicle model series: Metro®, LogistarTM, TeemakTM, AvantierTM, and Bison Motors. We believe successful vehicle development will put us in a position to become a leading Greener Energy Commercial Vehicle provider who offers a full line of electric and
hydrogen powered commercial vehicles.
Vehicle Charger Development
We have developed level 2 AC chargers (7kw/10kw/22kw) and level 3 DC chargers (120kw), which have received EU CE and US ETL certificates. These chargers will support the charge of the vehicles that we sell to our
customers as well as the vehicles that are made by other auto manufacturers as long as they meet the EU (Mennekes/CCS2) and USA (J1772/CCS1) standards. In 2025, we expanded our charging product portfolio with the development of a mobile energy
storage and charging solution, available across multiple capacity configurations ranging from 3kWh to 209kWh, designed to address a broad range of use cases including residential emergency backup, personal and commercial vehicle charging,
outdoor and off-grid applications, and fleet charging support. The mobile charging units have obtained UL 9540, UL 1973, FCC Part 15, and CE certifications, reflecting compliance with applicable U.S. and European safety and electromagnetic
standards. The product line is currently in the configuration and validation stage, with commercial-scale sales expected to commence in 2026.
Electric vehicle chargers are essential for ECV users to charge their ECV for daily use. Many ECV users need to install their own charging stations instead of relying on public charge stations. It
would be more convenient and more practical if our customers could purchase their vehicle chargers directly from us when they buy ECVs from us. It will be guaranteed that the charger will work with our vehicle seamlessly.
Manufacturing
We have established an asset-light manufacturing business model under both a distributed manufacturing model and original equipment manufacturing (“OEM”) model. Our distributed manufacturing model
focuses on the production of semi-knock down vehicle kits from our centralized manufacturing facilities which are then distributed for local final assembly. Alternatively, we work with tier-one automakers under our OEM model who produce completed
vehicles for us that meet our design and specifications.
Under our distributed manufacturing model, some of our vehicle models have a modular design that allows for local assembly in small factory facilities which require less capital investment. We
manufacture our own vehicle kits in our facilities in China where we leverage the economies of scale coupled with our mature supply-chain to efficiently manufacture vehicle kits.
Under our OEM manufacturing model, we contracted well established third-party automobile manufacturers, such as Seres, Chery, and JMC, to manufacture vehicle kits and completed vehicles for us. In
some cases, we provide technology and vehicle modules to the OEM contractors.
We believe our distributed manufacturing and OEM manufacturing methodologies allows us to execute our business plan with less capital than would be required by the traditional, vertically integrated
automotive model and, in the long-term, drive higher profit margins.
As of the date of this Annual Report, we are operating four manufacturing and/or assembly facilities: two in the US (Barstow, California and Freehold, New Jersey) and two in China (Changxing and Yangzhong). In 2024,
we terminated operation at our assembly facilities in Jacksonville, Florida, and Herne in Germany. We are also closing battery manufacturing facility in Monterrey in Mexico and considering relocating the operations to the United States, which
will help us navigate geopolitical changes, access specialized talent in battery technology, and improve operational efficiency through closer integration with our existing US facilities.
Our Distribution and Service Infrastructure
We have established our distribution and service infrastructure, which consists of our wholly owned local Electric Vehicle Centers (“EV Centers”), local dealer networks, parts fulfillment centers,
and local service providers. We continuously develop, expand, and improve our distribution and service infrastructure. We believe that having a good and capable distribution and service infrastructure is essential for our business. We have
invested many resources to build this distribution and service infrastructure. We believe a wholly owned distribution and service infrastructure is important to an automobile manufacturer like us. To that end, we have decided to build our own
distribution and service infrastructure after we secured sufficient capital to do so.
We distribute and sell our products directly by our corporate sales department or by our local EV Centers. We also distribute and sell our products through our local dealer networks in Europe and in
the United States, which are developed by our local EV Centers.
We provide our services through our local EV centers, our local dealers, or our local service providers. To support our local service providers or dealers, our local EV centers provide training and
support to our local dealers and local service providers.
To improve efficiency in distribution, sales, and services, we have begun introducing local distribution channels alongside our existing EV Centers. As these new distribution channels are gradually
replacing our local EV Centers, we are considering closing some EV Center locations. This shift toward distribution channels will improve service quality, enhance cash flow, reduce inventory burden, and significantly lower our operational costs.
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Our Parts Distribution System (“PARDISYS”)
We have invested resources into our cloud-based parts distribution system because we believe an effective and efficient parts distribution system is important for vehicle after-market support and
customer satisfaction. Through our cloud-based parts distribution system we globally provide and timely deliver spare-parts to our service providers and customers. The cloud-based system also keeps our parts inventory leaner and more responsive
to better manage our working capital more efficiently.
In order to satisfy that goal, we established two production-side parts warehouses in Changxing, China and Yangzhong, China which store our produced parts that can be locally sourced on a global
scale. Our warehouses can send the parts globally in response to orders from our website that customers can place. Based on the local demand data, our cloud-based parts distribution system will make determinations on when to send certain parts
from production-site warehouses to remote warehouses for quicker local delivery. As of December 31, 2025, we have established two spare-parts fulfillment warehouses in Barcelona, Spain, and Freehold, New Jersey.
Sales and Marketing
We believe that the quality and reputation of our products and our distribution and service infrastructure will support the company’s goals to retain and attract new customers.
We distribute and sell our products to our end-customers through our wholly-owned EV Centers and through our network of Cenntro dealers and distributors. Previously, Cenntro sold its products
through a channel partner network which enabled each partner to distribute products under respective private labels. While this model offered benefits of leveraging sales through each partners customer network; are partners ‘white labeled’ our
vehicles which diluted our brand value and placed too much of Cenntro’s reliance in each channel partner’s ability to conduct marketing in order to drive sales. With the expansion of our product lines, our ECV distribution model required a shift
from strict reliance on channel partners to a hybrid model that utilizes both select channel partners and combines direct sales with established regional dealers and branded EV Centers.
Under a strictly channel partner distribution model, we had little control over sales and quality. Through our EV Center model, we will have better assurance of our product quality, reduce our
overhead, improve customer satisfaction and enhance our brand recognition. Furthermore, our EV Center model will allow us to distribute our products directly in US as well as through established dealers and resellers.
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This hybrid model will enable the company to scale to meet demand, provide enhance control of the marketing and sales of its products, and parts support. Our EV Centers have
become the hub for distribution and provide marketing, technical training, logistical, and after-market support to Cenntro’s regional dealers, strategic partners and customers. Further, Cenntro’s EV Centers work with well-established commercial
vehicles dealers to build out and scale markets. We believe this hybrid model will serve us and our customers to improve customer satisfaction and enhance our brand recognition.
The Company’s distribution and service infrastructure also includes the development of a cloud-based parts distribution system as a global spare parts fulfillment system. This system will enhance the after-sales
spare parts support for our appointed service providers as well as our enterprise customers in servicing our commercial electric vehicles.
In 2024 and 2025, we began closing select EV centers while establishing local distribution channels.
In key strategic markets, including Japan, the Company has maintained channel partners relationships. For example, the company’s Japanese channel partner HW Electro, has established deep relationships with renowned
companies in Japan’s transportation and logistics sector. This channel partner has in turn represented and sold our brand and the company’s product line allowing Cenntro’s EVCs to gain early market share.
Suppliers and Customers
Our Integrated Supply Chain
We have invested significant time and resources in developing a supply chain capable of providing all of the components and materials necessary to manufacture our ECVs. Our integrated supply chain
is comprised of over 500 suppliers located in China and various other countries. Our vehicle designs share many of the same component parts, including the battery module, battery control, motor control and vehicle control, allowing us to achieve
significant cost efficiencies in our supply chain. Generally, our suppliers undergo rigorous testing before we onboard them as a supplier, including quality and process auditing, product verification, regulatory compliance and reliability
testing. Our suppliers must demonstrate that they can consistently deliver their specialized parts on time, while meeting our quality and product specifications. Many of our components are based on Cenntro-developed designs, and our suppliers are
contractually restricted from selling our customized components to any third parties unless we discontinue our purchases from such suppliers.
Currently, materials and components for our Metro® are shipped to our Changxing facilities and for Teemak, LS300, and LS400 are shipped to our Yangzhong facilities, where we manufacture key
components for and vehicle kits or completed vehicle of our Metro®, Teemak, LS300, and LS400 models for assembly and shipment. Components for our new ECV models are shipped directly to our assembly and manufacturing sites that fully assemble
vehicles for their local markets. Since substantially all of our manufacturing to date has been conducted in China (through both our facilities and those of our manufacturing partners), sourcing our components in China has been more
cost-effective than sourcing components outside of China, and we believe it has reduced risks arising from shipping delays and importing inefficiencies.
In the long-term, through our deep supply chain development know-how, we plan to geographically expand our supply chain to support our planned growth. More specifically, we intend to establish
supply chain relationships in North America and the European Union to support our manufacturing and assembly needs in these markets, thereby reducing the time in transit and potentially the duties associated with importing our components and
spare parts from China. We believe we can reduce the overall cost of ECV assembly by shifting to a “merge in transit” model, whereby component shipments from suppliers, including local market suppliers, are consolidated at our local assembly
facilities for final ECV assembly.
Historically, we have generally obtained components from multiple sources whenever possible, similar to other automotive manufacturers. However, a small number of components used in our ECVs are
purchased from a single-source, which we refer to as our single-source suppliers. For example, while several sources for the airbag module in the Metro® are available, we currently have only one supplier for this component. We generally do not
maintain long-term agreements with our single-source suppliers. The vast majority of our components have alternative sources and we do not anticipate that finding qualified alternative sources for any particular component, including single-source
supplier components, will be a material concern.
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We use various raw materials in our business including aluminum, steel, carbon fiber, non-ferrous metals such as copper, lithium, nickel and cobalt, as well as key component inputs such as
semiconductors. The prices for these raw materials and key components fluctuate depending on market conditions and global demand. We believe that we have adequate supplies or sources of availability of the raw materials necessary to meet our
manufacturing and supply requirements. There are always risks and uncertainties, however, with respect to the supply of raw materials that could impact their availability in sufficient quantities or reasonable prices to meet our needs. For
example, beginning in late 2020, the automotive industry has been subject to a shortage of semiconductors due to a spike in demand and a series of supply chain issues relating to COVID-19.
Our Growth Strategy
We intend to be a leading global designer, developer and manufacturer of a full range of ECVs from electric light models to and heavy-duty ECVs models. The key elements of our growth strategy
include:
To Expand Our Cenntro Branded Global Marketing sales and after-sales support network (i.e. EV Centers) to Rebalance our Distribution Network in selected
countries
Until the end of 2021, we outsourced the majority of distribution and marketing for our vehicles to third party “channel partners”. Similarly, we substantially relied on private label channel
partners to assemble the Metro® from vehicle kits that we manufactured in our China-based facilities. While these relationships allowed the Company to forego expensive capital investments it significantly diluted our brand value and left the
Company fully reliant on third parties to scale markets for our ECVs. To further expand our market presence and control our growth we shifted our distribution strategy to our wholly owned and operated EV Centers. In conjunction with the
introduction of our new ECV models, we believe operating our own EV Centers will improve brand awareness, effectively scale market penetration and better align product supply to meet demand. Our EV Centers are established locally and provide for
local marketing, sales, technical and after-market parts support. Our regional EV Centers will also recruit and develop local dealers and service providers to support expansion of their local networks. As a result of the implementation of this
new go-to-market model, in the first quarter of 2022, we terminated two channel partners in the United States. In March 2022 and March 2023, we acquired 65% and further 35% equity interest of TME and gained complete control of our largest channel
partner in Europe based in Germany. We rebranded TME to become Cenntro Automobile Europe (i.e. CAE).
During late 2021, Cenntro Automotive Corporation (“CAC”) began utilizing one of our two facilities in Freehold, New Jersey for the trial production of our LogistarTM 400 model. We also have
established a European Operations Center in Dusseldorf, Germany, which provides marketing support, after-market support and spare-parts warehousing for the European market, as well as warehousing services with a logistics company in Budapest,
Hungary to house spare parts for our ECVs. We established a local assembly facility in Jacksonville, Florida, where we plan to scale assembly of the LogistarTM 400, the Metro® and the TeemakTM for distribution in the North American market. We
believe maintaining a local assembly facility in Germany will provide us with access to well-established hardware and logistics systems and trained personnel. We began trial assembly operations at the Jacksonville facility in March 2023 and the
Onterio facility in September 2023. We expect that our full acquisition of CAE will allow us to expand local assembly capacity in the European Union for production some of our EU ECV models, including the Metro® series, Teemak® and Antric®.
During 2022, we began to establish a hybrid distribution model that combines our EV Centers, established dealers with select channel partners. To improve operating efficiency and align with regional market
conditions, we undertook a strategic rationalization of our EV Center footprint beginning in 2024, consolidating or closing select locations while transitioning to dealer-led distribution channels in key markets. In European markets, this
transition has been substantially completed, with the Company now operating primarily through local distribution partners, while retaining a single Company-operated EV Center in Spain as a regional presence. In North America, we continue to
maintain a limited number of EV Centers as regional anchors for brand presence and customer service, while relying principally on local dealer networks as the primary channel for vehicle sales. We also cooperate with few channel partners in
selected strategic markets, such as Japan in east-Asia. At date of this report, we maintained four operational EV centers in Barcelona, Spain, New Jersey and California in the US, and Changxing in China. We believe this regionally
differentiated, dealer-led hybrid model improves capital efficiency, reduces time-to-market for our ECVs, and provides the operational flexibility to respond to the specific commercial conditions of each market.
To Brand our Global Market Sales and After Sales Support Network via our Distribution Channels
Our manufacturing model has traditionally relied on developing supply chain relationships with component vendors and specifically through a network of third-party supply partners. From 2022 onwards
we shifted our focus from solely investing in our own manufacturing capabilities to a contract manufacturing strategy. To this end, we work closely with proven suppliers for components and parts in order for the Company to utilize a less
capital-intensive path to product development. Correspondingly, we also re-aligned our distribution model from a majority of channel partners and country importers to a hybrid approach combining building our own branded local EV Centers with
developing our distribution channels. Our regional EV Centers are wholly-owned subsidiaries that distribute, market, and sell parts in addition to providing after market support for Cenntro distribution channels and dealers. Our implementation
strategy focuses on setting EV Centers in targeted local regions to distribute our ECVs mainly through local dealer distribution networks and value-added re-sellers.
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We believe our strategy to manage and support our EV Centers and distribution network will distinguish Cenntro from other traditional EV automakers and build a solid distribution and service
infrastructure in local markets. We believe this shift will enhance our market penetration, and ability to be more responsive to market feedback and customer input. Local EV Centers will bolster our local presence in sales markets to help
Cenntro become perceived and associated with better products and while enhancing our ability to provide hands-on service. In the meantime, with the hybrid model, we also cooperate with large-scale distributors to improve market penetration and
utilize local dealer networks with their existing sales and service capabilities for quicker market penetration and reduction on capital requirements. This two-tier approach will achieve our sales control and building our own sales capability
but also benefit from distributor’s existing sales capabilities.
As of the date of this Annual Report, our distribution and service infrastructure consist of one EV Centers in Europe, two EV Centers in North America, and one EV Center in China. In addition to our own EV
Centers, we also established many local distribution channels and local vehicle dealers through the regions.
To Regionalize Manufacturing and Supply Chain
We regionalize the manufacturing and supply chain relating to certain key components of our ECVs, such as vehicle upfitting and battery packs, in the geographic markets in which our ECVs are sold.
In the long-term, through our deep supply chain development know-how, we plan to geographically expand our supply chain to support our planned growth. More specifically, we intend to establish supply chain relationships in North America and the
European Union to support our manufacturing and assembly needs in these markets, thereby reducing the time in transit and potentially the duties associated with importing our components and spare parts from China. We believe we can reduce the
overall cost of ECV assembly in certain geographical markets by shifting to a “merge in transit” model, whereby component shipments from suppliers, including local market suppliers, are consolidated at our local assembly facilities for final ECV
assembly, in contrast with our current model which integrates all components into vehicle kits or fully assembled vehicles in our manufacturing facilities in China or our manufacturing partners’ facilities. We believe that investing in the
regionalization of our manufacturing and supply chain can ultimately provide significant benefits to us and our channel partners. We believe sourcing our ECV components and manufacturing, assembling and selling our ECVs regionally can help us
reduce costs associated with import/export taxes and shipping, further reducing vehicle production costs. In addition, we believe that regionalizing our manufacturing and supply chain will help support and strengthen our brand in the markets in
which our ECVs are sold, as our operations become integrated into those markets. We believe that our deep supply chain development know-how will provide us significant advantages; however, currently, substantially all of our supply chain
experience is limited to China. If we are unable to effectively manage the sourcing of our components and the responsiveness of our supply chain in areas outside of China, our business and results of operations may be harmed. It is also likely
that in the early stages of our supply chain expansion, we can expect most component sources will be single-source suppliers in areas outside of China.
To Invest in our Enterprise Resource Planning and Parts Distribution Systems
To enhance vehicle after-market support and customer satisfaction, we believe an effective and efficient parts distribution system is important to develop. For this purpose, we have invested resources to build
out a cloud-based automobile parts distribution system (“PARDISYS”). This cloud-based automobile parts distribution system allows us to more responsively provide and timely deliver spare parts to our service providers and global customers while
maintaining a well-managed minimum parts inventory. To use PARDISYS, our customers log in the cloud-based system to enquire and order the required spare parts. The enquiry can be made by entering the name of the part, part number, VIN number of
the whole vehicle, among other search functions. There are both fuzzy inquiries and precise inquiries for searching, which brings convenience to the customers. Currently, parts, accessories and special repair tools for all Cenntro vehicles can
be ordered through the PARDISYS system, and the back-office will provide the optimal distribution plan according to the customer’s delivery address and warehouse inventory. PARDISYS maintained one warehouse in Changxing, China and three
fulfilment warehouses in New Jersey and California, United States and Barcelona, Spain. The source warehouses distribute frequently used parts to the fulfilment warehouses, which ship them to customers. When parts inventory falls below the
safety stock level, the fulfilment warehouses submit replenishment requests to the source warehouses to replenish the inventory to ensure the supply of frequently used parts. Non-usable parts are stored in the fulfilment warehouse and shipped
directly to the customer when a customer order is placed.
As of the date of this Annual Report, we established a production site parts warehouse in Changxing, Zhejiang province in China. These warehouses store our parts that are produced or sourced locally. These warehouses
can send the parts globally based on the orders from our website that customers can place globally. Based on the local demand data, the system is expected to source certain parts from production-site warehouses to a remote parts warehouse for
quicker local delivery. As of the date of this Annual Report, we operate three remote parts warehouses in Barcelona, Spain, Freehold, New Jersey, and Barstow, California.
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To Expand Our Product Offerings
We began pilot production of our first-generation, U.S. Class 1 (0 - 6,000 lbs.), light-duty commercial vehicle, the Metro®, in 2018, and, as of December 31, 2022, we have sold more than 4,090
Metro®units throughout Europe, North America and Asia. Utilizing our proprietary design and technology, we subsequently launched four ECV series, Avantier, Logimax, Logistar, and Teemak. By the end of
2025, we have twelve ECV models available for commercial offering for European, America, and other countries. They are Metro MB, Avantier α and c, Avantier EX and CX, Avantier Commuter, Logistar 100,
Logistar 200, Logistar 210, Logistar 260, Logistar 300, Logistar 400, Logistar 450, and Teemak. One of our strategies is trying to offer a full line of ECV products.
In 2025, we added two new EV models that are commercially available for our customers. They are Avantier EX and CX. Avantier EX and CX has similar size and features
compare it to Avantier α and c but offers more competitive pricing. We expanded our light-duty electric vehicle portfolio with the introduction of new models under the Avantier Series, which now comprises the Avantier C, Avantier EX, and
Avantier Commuter. All three models are designed for urban and neighborhood mobility, featuring compact and lightweight designs tailored for city use, and are approved under the European Union’s L7e and M1 type classifications, enabling
marketing and sale across all EU member states and other jurisdictions that have adopted EU vehicle type approvals.
The Avantier EX and Avantier C offer similar size and feature profiles to our previously introduced Avantier α and Avantier c models, while providing more competitive
pricing to broaden market accessibility. The Avantier Commuter, introduced to the market in 2025, is a four-seat, five-door passenger vehicle equipped with a 50kW powertrain and an estimated range of up to 320 kilometers on a single charge,
designed to meet the mobility needs of urban consumers. Since its introduction, the Avantier Commuter has received positive market reception, with 66 units sold and delivered as of the date of the related announcement. We believe the expanded
Avantier Series strengthens our presence in the urban electric vehicle segment and broadens our addressable customer base across European and other markets that recognize EU type approvals.
In addition, we are advancing several product development programs to broaden our commercial and specialty vehicle offerings. These include the TeemakTM M2, an upgraded and
enhanced generation of our off-road utility vehicle series targeting the North American market, anticipated for launch in the fourth quarter of 2026; a purpose-built electric shuttle bus derived from the LS450 platform, featuring an elevated