Ming He
CenntroAbout Ming He
Ming He is Treasurer of Cenntro Inc. (CENN); he was appointed Treasurer on May 3, 2022 after joining the company as Chief Financial Officer in February 2014. He is 54 years old, holds CFA and CPA designations, and earned an MBA (2003) and MS in Accountancy (2004) from the University of Illinois at Urbana‑Champaign, with a bachelor’s degree from Shanghai University of International Business and Economics (formerly Shanghai Institute of Foreign Trade) . Company performance during the most recent fiscal year shows net revenues increased to $31.3 million in 2024 from $10.4 million in 2023 and Adjusted EBITDA improved (less negative) to $(28.2) million from $(39.3) million, providing context for pay‑for‑performance analysis .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Shengkai Innovations, Inc. | Chief Financial Officer | Mar 2010 – Apr 2012 | Company completed Nasdaq listing and public offerings during his tenure . |
| Zhongchai Machinery, Inc. | Chief Financial Officer | Jan 2007 – Feb 2010 | Senior finance leadership at a drivetrain manufacturer . |
| SORL Auto Parts, Inc. | Senior Director | Oct 2004 – Jan 2007 | Guided progress in U.S. capital markets and closed a public offering in Nov 2006 . |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus % | Actual Bonus ($) | Notes |
|---|---|---|---|---|
| 2024 | 250,000 | — | — (no executives eligible for 2024 cash bonus) | |
| 2023 | 250,000 | — | — |
Performance Compensation
- No cash annual bonus plan operated for executives for 2024; the compensation committee did not grant new options in 2024 .
| Instrument | Grant Date | Shares/Options | Grant/Exercise Price ($) | Vesting Detail | 2024 Vesting | 2023 Vesting | Expiration |
|---|---|---|---|---|---|---|---|
| Stock Option | May 3, 2022 | 20,000 | 16.800 | Time‑based; installments | 5,000 options vested | 5,000 options vested | May 3, 2032 |
| Stock Option | May 3, 2022 | 15,000 | 16.800 | Time‑based; installments | 3,752 options vested | 3,752 options vested | May 3, 2032 |
There were no disclosed performance‑share units (PSUs) or explicit performance metric weightings for Mr. He. The company has historically used stock options; the 2023 Equity Incentive Plan authorizes multiple award types but 2024 NEO grants were not made .
Equity Ownership & Alignment
| As-of Date | Beneficial Ownership (shares) | % of Outstanding | Composition |
|---|---|---|---|
| Mar 27, 2025 | 99,772 | <1% | Entirely options exercisable within 60 days |
| Jun 25, 2025 | 101,648 | <1% (based on 47,912,831 outstanding) | Entirely options exercisable within 60 days |
- Hedging/shorting: Insider Trading Policy prohibits directors and officers from engaging in short sales and trading derivatives of company securities; policy text does not list any categories of permitted hedging transactions .
- Ownership guidelines/pledging: No executive stock ownership guidelines or share pledging disclosures were identified in the proxy; payment methods for option exercises under the plan may include broker-assisted sales or pledges solely for exercise mechanics, per plan terms .
Outstanding and Vested vs Unvested Equity (12/31/2024)
| Award | Exercisable | Unexercisable | Exercise Price ($) | Expiration |
|---|---|---|---|---|
| Stock Options (tranche A) | 10,318 | 4,682 | 16.800 | May 3, 2032 |
| Stock Options (tranche B) | 89,454 | — | 2.7947 | Mar 7, 2026 |
Employment Terms
| Term | Detail |
|---|---|
| Initial agreement | Aug 20, 2017 employment agreement (then‑CAG) to serve as CFO; assumed by Cenntro Automotive Corporation in 2021 . |
| Current role | Appointed Treasurer on May 3, 2022 . |
| Base salary | $250,000 current base salary under the agreement . |
| Term | Initially through Aug 19, 2022; auto‑renews for successive one‑year periods unless terminated earlier . |
| Severance | Not entitled to cash severance under the employment agreement . |
| Covenants | Customary non‑compete, non‑solicit, and confidentiality provisions . |
| Benefits | Eligible for standard employee benefit plans; no executive‑specific perquisites; no 401(k) match . |
Performance & Track Record
- Revenue and mix: Net revenues from continuing operations rose to $31.3 million in 2024 from $10.4 million in 2023, with U.S. market growth highlighted by a shift toward North America and participation in state incentive programs .
- Profitability: Adjusted EBITDA from continuing operations improved to $(28.2) million in 2024 vs $(39.3) million in 2023; stock‑based compensation was $3.37 million in 2024 .
- Legal and integrity: The company disclosed no material legal proceedings involving any director or executive officer in the last ten years .
Compensation Structure Analysis
- Mix and risk: 2024 pay consisted of fixed salary and recognition of prior option grant fair values; no 2024 equity grants to NEOs, and no cash bonus eligibility, increasing fixed pay share year‑over‑year .
- Equity plan flexibility: The 2023 Equity Incentive Plan allows the compensation committee to modify, cancel, and re‑grant awards (repricing) without shareholder approval, subject to participant consent—this can be a governance risk if used to reset underwater options .
- Say‑on‑pay: As an Emerging Growth Company (EGC), the company is exempt from holding a non‑binding say‑on‑pay vote, limiting shareholder feedback mechanisms on executive compensation .
Risk Indicators & Red Flags
- Upcoming option expirations: 89,454 options at a $2.7947 strike expire March 7, 2026; 16.80 strike options expire May 3, 2032, defining potential exercise/monetization windows and associated selling pressure if in‑the‑money .
- Hedging/shorting limits: Policy prohibits short sales and derivative transactions by insiders, which supports alignment but does not expressly disclose pledging prohibitions beyond plan mechanics .
- Legal/ethical backdrop: No disclosed executive legal proceedings; reduces integrity risk flags .
- Governance: Plan‑level repricing authority without shareholder approval may pose pay‑for‑performance misalignment risk if exercised .
Investment Implications
- Alignment: Mr. He’s beneficial ownership comes entirely from vested options exercisable within 60 days (99,772–101,648 shares as of Mar–Jun 2025), indicating equity‑based alignment but with limited outright share ownership; no cash severance reduces downside protection at exit, supporting shareholder alignment .
- Selling pressure/retention: The large 2026 expiration tranche (89,454 options at $2.7947) creates a near‑term decision point that can influence selling or exercise behavior if options are in‑the‑money; lack of cash severance plus auto‑renew terms suggest moderate retention risk mitigated mainly by option value .
- Pay‑for‑performance: With no 2024 cash bonus program and no new 2024 grants, realized pay sensitivity to performance is primarily through pre‑existing options; company‑level metrics improved in 2024 (revenue growth and Adjusted EBITDA improvement), but future incentive design clarity (e.g., explicit performance metrics/PSUs) would strengthen pay‑performance linkage .
- Governance watch‑items: EGC say‑on‑pay exemption and the plan’s repricing flexibility warrant monitoring for any moves that could dilute performance discipline .