CENN

• Sold 337 units of electric commercial vehicles in H1 2022, up 23% y-o-y, with net revenue up 105% to $5 million. - Launched new EV models including LS 200, LS 100, LS 260, and LS 400. - Set up Cennatic Power Inc. to manufacture advanced lithium batteries. - Expanded assembly facilities in Germany, New Jersey, and preparations for Florida and Jacksonville plants. - Transitioned to a direct B2B distribution model and opened EV centers in Dusseldorf, Warsaw, Barcelona, and Jamaica.

• Favorable policies in the US via the Inflation Reduction Act are expected to stimulate EV adoption. - Plan to enhance supply capabilities to navigate supply chain and logistic challenges. - Aim to capture market share in the electric vehicle market and realize revenue potential.

For the first half of 2022, Cenntro Electric Group sold 337 units of electric commercial vehicles, up 23% from the same period in 2021, leading to a 105% growth in net revenue to $5 million. Vehicle sales accounted for 96% of the revenue. Geographically, 59% of revenue was generated from Europe, 32% from Asia, and the remainder from the United States. Gross profit was $0.53 million, up 18% from the prior year, but gross margin was 10.6% compared to 18.3% in the previous year, mainly due to inflationary pressure on input costs like batteries and shipping costs.

• Supply chain disruptions. - Inflationary pressure on input costs such as batteries and shipping costs. - Macroeconomic uncertainties impacting business operations.

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