CENN

Cenntro fails the quality test on every axis. FY2025 revenue fell 42% to $18.1M — not a ramp but a collapse from the $31.3M FY2024 print, and after a decade the company still runs a NEGATIVE gross margin (-12.8%, gross profit of -$2.32M), meaning it loses money on the vehicles before a single dollar of overhead. Operating margin is -180% and net margin -404% on a $73.0M loss. Management concedes the pattern in the 10-K: ~$96.7M of R&D since inception, cumulative losses from operations of $59.0M (2025) and $47.5M (2024), a 'limited operating history,' and explicit language that investments 'may not result in profitability within our expected timeframe or at all.' The retained-earnings deficit of -$392M is the scoreboard.

The balance sheet turns a bad business into an uninvestable one. Cash is just $4.48M, down 64% year over year, against -$12.6M of operating cash burn — under six months of runway on current trends. Equity fell 48% to $40.3M and shrinks every quarter the losses compound. The financing solution is visible in the share count: shares outstanding rose 184.8% to 87.9M, and the -$87.21 diluted EPS signals a reverse split layered on top of relentless issuance. Existing holders are being diluted to fund losses, which is the structural reason to avoid rather than merely sell.