Company: CENN
Filing Date: 2025-04-01
Form Type: 10-K
Source: 0001140361-25-011607
Chunk: 9

Company: Cenntro Inc.
Filing Date: 2025-04-01
Form: 10-K
Item: Item 1
Chunk 9
---
 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 $53.3 million, or 68.4% of the Company’s total
          consolidated net assets as of December 31, 2024.

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 March 2025 report by Virtue Market Research, the global EV market was valued at approximately $561.3 billion in 2024 and is projected to reach approximately $1.58
          trillion by 2030, representing a compound annual growth rate of 19% from 2023 to 2030. 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, Statista projects the global electric commercial vehicle (ECV) market to reach revenues of $623.3 billion in 2024, with a steady annual
          growth rate (CAGR 2024-2028) of 9.82%, reaching $906.7 billion by 2028.

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 report, over 25 countries have made announcements regarding their intention to phase out ICE vehicles include
          the following:

    •