Cenntro Electric Group Limited (CENN) SC 13D/ACENNTRO ELECTRIC / China Leader ownership change

The class of equity security to which this statement on Schedule 13D/A relates is ordinary shares, no par value (the “Ordinary Shares”), of Cenntro Electric Group Limited ACN 619 054 938, an Australian public limited company (f/k/a Naked Brand Group Limited (“NBG”)) (the “Issuer”). The address of the principal executive offices of the Issuer is 501 Okerson Road, Freehold, New Jersey 07728.

(i) China Leader Group Limited, a British Virgin Islands company (“CLGL”); and

(ii) Yeung Heung Yeung, a Hong Kong citizen;

The agreement among the Reporting Persons relating to the joint filing of this Schedule 13D/A is attached to this Schedule 13D/A as Exhibit 99.1.

CLGL is wholly-owned by Yeung Heung Yeung. Mr. Yeung has sole voting and dispositive power over the Ordinary Shares held CLGL. The principal business of CLGL is investment. Mr. Yeung is a director of CAG (as defined below).

The principal business address of each of the Reporting Persons is P.O. Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

All of the Ordinary Shares of the Issuer reported herein as beneficially owned by the Reporting Persons were acquired in connection with that certain Stock Purchase Agreement, dated as of November 5, 2021 (as amended, the “Acquisition Agreement”), by and among the NBG, Cenntro Automotive Group Limited, a Cayman Islands exempted company with limited liability (“CAG”), Cenntro Automotive Group Limited, a Hong Kong private limited company and wholly owned subsidiary of CAG (“CAG HK”), Cenntro Automotive Corporation, a Delaware corporation and wholly owned subsidiary of CAG (“CAC”) and Cenntro Electric Group, Inc., a Delaware corporation and wholly owned subsidiary of CAG (“CEG” and, together with CAG HK and CAC, “Cenntro”). Pursuant to the Acquisition Agreement, NBG purchased from CAG (i) all of the issued and outstanding ordinary shares of CAG HK (the “CAG HK Shares”), (ii) all of the issued and outstanding shares of common stock, par value US$0.001 per share, of CAC (the “CAC Shares”), and (iii) all of the issued and outstanding shares of common stock, par value US$0.01 per share, of CEG (the “CEG Shares” and, together with the CAG HK Shares and the CAC Shares, the “Cenntro Shares”) (the “Combination”). The Combination closed on December 30, 2021 (the “Closing”). The aggregate purchase price for the Cenntro Shares was 174,853,546 Ordinary Shares (the “Acquisition Shares”) (as determined in accordance with the Acquisition Agreement) and the assumption of options to purchase an aggregate of 9,225,291 Ordinary Shares under the Cenntro Electric Group Limited Amended and Restated 2016 Incentive Stock Option Plan. On January 4, 2022, CAG distributed the Acquisition Shares to the holders of its capital stock in accordance with (i) the Acquisition Agreement and (ii) CAG’s Third Amended and Restated Memorandum and Articles of Association (the “Distribution”).  Pursuant to the Distribution, CLGL received 20,918,659 Ordinary Shares.

Immediately after the Closing, NBG changed its name from “Naked Brand Group Limited” to “Cenntro Electric Group Limited,” and the business conducted by Cenntro became the business conducted by the Issuer. Notwithstanding the legal form of the transaction, the Combination was accounted for as a reverse recapitalization in which Cenntro was determined to be the accounting acquirer.

This summary is qualified by the actual terms of the Acquisition Agreement, a copy of which is attached as Exhibit 99.3 to this Schedule 13D/A and is incorporated herein by reference.

On April 4, 2023, the reporting persons sold 3,047,000 ordinary shares in the public market. The number of ordinary shares held by the reporting persons was reduced from 20,918,659 to 17,871,659.

The information contained above in Item 1 and Item 3 of this Schedule 13D/A is incorporated herein by reference. The Reporting Persons acquired the securities of the Issuer pursuant to the Acquisition Agreement and the Distribution related thereto. Subject to the Lock-up Agreement described in Item 6 of this Schedule 13D/A, the Reporting Persons may from time to time buy or sell securities of the Issuer as they may deem appropriate.

Except as described in this Schedule 13D/A, the Reporting Persons do not have any present plans or proposals that relate to or would result in any of the actions described in subparagraphs (a) through (j) of Item 4 of Schedule 13D/A, although, subject to the agreements described herein, the Reporting Persons, at any time and from time to time, may review, reconsider and change their position and/or change their purpose and/or develop such plans and may seek to influence management of the Issuer or the Board with respect to the business and affairs of the Issuer and may from time to time consider pursuing or proposing such matters with advisors, the Issuer or other persons.

The information contained in Item 3 of this Schedule 13D/A is incorporated by reference herein.

CLGL beneficially owns 17,871,659 Ordinary Shares, representing 6.8% of the Issuer’s outstanding Ordinary Shares. CLGL is wholly-owned by Mr. Yeung and Mr. Yueng has sole voting power and sole dispositive power with respect to the Ordinary Shares held by CLGL. Accordingly, Mr. Yeung may be deemed to beneficially own the 17,871,659 Ordinary Shares directly held by CLGL.

The filing of this Schedule 13D/A shall not be construed as an admission that any such person is, for the purposes of sections 13(d) or 13(g) of the Act, the beneficial owner of any securities covered by this Schedule 13D/A, other than those Ordinary Shares held of record by such Reporting Person.