Company: CENN
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001140361-25-019312
Chunk: 3

Company: Cenntro Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 3
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 Entities over which we have the ability to exercise significant influence but do not have a controlling interest through investment in common shares, or in-substance
              common shares, are accounted for using the equity method. Under the equity method, we initially record our investment at cost and subsequently recognize our proportionate share of each such entity’s net income or loss after the date of
              investment into the statements of operations and comprehensive loss and accordingly adjust the carrying amount of the investment. When our share of losses in the equity of such entity equals or exceeds our interest in the equity of such
              entity, we do not recognize further losses, unless we have incurred obligations or made payments or guarantees on behalf of such entity. An impairment charge is recorded when the carrying amount of the investment exceeds its fair value and
              this condition is determined to be other-than-temporary. The adjusted carrying amount of the assets become new cost basis.

Discontinued operations

            We classify the results of a component (or group of components) to be disposed (“disposal group”) as a discontinued operation when the disposal group meets the held-for-sale
              criteria, is disposed of by sale or is disposed of other than by sale (e.g. abandonment) and when the disposal group represents a strategic shift that has, or will have, a major effect on our operations and our financial results.

            We report the operating results related to the disposal group as discontinued operations for all periods presented in our consolidated statements of comprehensive loss,
              respectively.

            28

            Key Operating Metrics

              We prepare and analyze operating and financial data to assess the performance of our business and allocate our resources. The following table sets forth our key
                performance indicators for the three months ended March 31, 2025 and 2024.

                    Three Months ended March 31,

                     2025

                    2024

                  (Unaudited)

                  Gross margin of vehicle sales

                  10.8

                  %

                  18.4

                  %

            Gross margin of vehicle sales. Gross margin of vehicle sales is defined as gross profit of vehicle sales divided by total revenue of vehicle sales.

Results of Operations

            The following table sets forth a summary of our statements of operations for the periods indicated:

                  Three Months ended March 31,

                   2025

                  2024

                   (Expressed in U.S. Dollars)

                  (Unaudited)

                  Combined Statements of Operations Data:

                  Net revenues

                  2,143,058