Revenue Performance - Revenue for Q2 2024 was $0.3 million, a significant decline of 97.5% compared to $12.2 million in Q2 2023[4] - Total revenue for the first half of 2024 was $1.8 million, a decrease of 91.9% from $22.4 million in the same period last year[6] - The company sold only one vehicle in Q2 2024, down from 93 vehicles in the same period last year, resulting in vehicle sales revenue of $0.2 million compared to $12.2 million in Q2 2023[2] - Logistics and warehousing services generated approximately $0.1 million in revenue during the first half of 2024, representing about 9.5% of total revenues[7] Cost and Expenses - The cost of revenue from parallel-import vehicles sold decreased by approximately $10.8 million, or 98.0%, from $11.0 million in Q2 2023 to $0.2 million in Q2 2024[4] - Selling expenses decreased significantly to approximately $20,000 in Q2 2024, representing 6.6% of total revenues, down from $141,340 in Q2 2023[5] Net Income and Loss - The company reported a net loss of $0.6 million in Q2 2024, compared to a net income of $0.2 million in Q2 2023[5] - For the six months ended June 30, 2024, Cheetah Net Supply Chain Service Inc. reported a net loss of $1,221,810 compared to a net income of $47,812 for the same period in 2023[13] Cash Flow and Financial Position - As of June 30, 2024, the company had cash of $6.3 million and working capital of approximately $12.4 million[8] - Net cash provided by operating activities for the six months ended June 30, 2024, was $827,980, a significant decrease from $4,145,363 in the prior year[13] - The company experienced a net cash outflow of $912,617 in investing activities during the six months ended June 30, 2024[13] - Cheetah Net Supply Chain Service Inc. generated $5,944,540 in net cash from financing activities, a turnaround from a net cash outflow of $3,611,618 in the same period last year[13] - The net increase in cash for the six months ended June 30, 2024, was $5,859,903, compared to an increase of $533,745 in the prior year[13] - Cash at the beginning of the period was $432,998, which increased to $6,292,901 by the end of the period[13] - The cash balance at the end of the period for June 30, 2024, was $6,292,901, significantly higher than $592,126 at the end of June 30, 2023[13] Strategic Plans - The company plans to move its headquarters from Charlotte, NC to Irvine, CA to enhance its logistics and warehouse operations[3] - The company aims to become an integrated provider of international trade services and financing for small- and medium-sized traders, moving beyond the parallel-import vehicle business[2]

Core Viewpoint - Cheetah Net Supply Chain Service Inc. is facing significant challenges in its parallel-import vehicle business due to adverse market conditions in the PRC, leading to a substantial decline in revenue and a strategic shift towards logistics and warehousing services [2][3]. Financial Performance - For the second quarter of 2024, total revenues were approximately $0.3 million, a drastic decrease from $12.2 million in the same quarter of 2023, primarily due to a 98.4% drop in revenue from parallel-import vehicles [4][9]. - The company sold only one vehicle in Q2 2024 compared to 93 vehicles in Q2 2023, resulting in vehicle sales revenue of $0.2 million versus $12.2 million in the prior year [2][4]. - The net loss for Q2 2024 was $0.6 million, contrasting with a net income of $0.2 million in Q2 2023 [8][12]. - For the first half of 2024, revenues totaled $1.8 million, down from $22.4 million in the same period last year, with only 14 vehicles sold compared to 175 in the previous year [9][10]. Cost Structure - The total cost of revenue from parallel-import vehicles sold decreased by approximately $10.8 million, or 98.0%, from $11.0 million in Q2 2023 to $0.2 million in Q2 2024 [5][10]. - The cost of revenue as a percentage of vehicle revenue was 107.8% in Q2 2024, indicating a loss on vehicle sales [5][10]. New Business Direction - The company is transitioning from the parallel-import vehicle business to become an integrated provider of international trade services and financing for small- and medium-sized traders, generating over $70,000 in warehousing and logistics revenue from non-vehicle-related wholesalers in Q2 2024 [2][3]. - The planned headquarters move from Charlotte, NC to Irvine, CA aims to enhance logistics operations and access to the Southern California market [2][3]. Liquidity and Cash Flow - As of June 30, 2024, the company reported cash of $6.3 million and working capital of approximately $12.4 million [13]. - The company is focused on improving liquidity through operational cash generation, debt financing, and potential equity financing if necessary [14].

Financial Performance - Total revenues for the three months ended June 30, 2024, were $293,860, a significant decrease from $12,223,026 in the same period of 2023[7] - Gross profit for the six months ended June 30, 2024, was $57,479, down from $2,395,426 in the same period of 2023[7] - The net loss for the three months ended June 30, 2024, was $(612,880), compared to a net income of $155,745 for the same period in 2023[7] - The net loss for the six months ended June 30, 2024, was $1,221,810, compared to a net income of $47,812 for the same period in 2023[13] - Total revenue for the three months ended June 30, 2024, was $293,860, a decrease of 97.6% compared to $12,223,026 for the same period in 2023[9] - Total revenue for the six months ended June 30, 2024, was $1,801,645, a decrease of 92.0% compared to $22,437,468 for the same period in 2023[9] - The company reported a loss from operations of $(852,348) for the three months ended June 30, 2024, compared to a profit of $545,629 in the same period of 2023[7] - Operating expenses for the six months ended June 30, 2024, totaled $1,731,258, compared to $1,565,593 for the same period in 2023[7] Assets and Liabilities - Total current assets increased to $13,621,717 as of June 30, 2024, from $9,820,537 as of December 31, 2023[5] - Total assets rose to $16,275,899 as of June 30, 2024, compared to $10,059,265 as of December 31, 2023[5] - Current liabilities decreased to $1,240,967 as of June 30, 2024, from $2,358,791 as of December 31, 2023[5] - Total liabilities decreased to $2,462,086 as of June 30, 2024, from $3,154,637 as of December 31, 2023[5] - Stockholders' equity increased to $13,813,813 as of June 30, 2024, from $6,904,628 as of December 31, 2023[5] Cash Flow - Cash provided by operating activities for the six months ended June 30, 2024, was $827,980, significantly lower than $4,145,363 for the same period in 2023[13] - Net cash provided by operating activities was $827,980, a significant decrease from $4,145,363 in the prior year[13] - Net cash used in investing activities was approximately $0.9 million for the six months ended June 30, 2024, including $0.2 million for the Edward acquisition[165] - Net cash provided by financing activities was $5,944,540 for the six months ended June 30, 2024, compared to $(3,611,618) for the same period in 2023[168] Revenue Segments - Revenue from the parallel-import vehicle dealership is recognized at the point of vehicle delivery, with no right of return or sales incentives provided to dealers[41] - In the logistics and warehousing services segment, revenue is recognized based on the actual number of days goods are stored, with no provisions for sales return allowances[42] - For the six months ended June 30, 2024, the company generated approximately $0.2 million in revenues from logistics and warehousing services, representing about 31.8% of total revenues for the period[118] - Revenue from parallel-import vehicles decreased by $20.8 million, or 92.7%, from approximately $22.4 million for the six months ended June 30, 2023, to $1.6 million for the same period in 2024[141] Acquisitions and Investments - The company reported an acquisition of business for $220,117 during the six months ended June 30, 2024[13] - The company finalized the acquisition of Edward for a total purchase price of $1.5 million, consisting of $0.3 million in cash and $1.2 million in stock[71] - The company acquired Edward Transit Express Group Inc. for a total consideration of $1,500,000 in cash and stock, expanding its logistics capabilities[16] Operational Changes - The company dissolved two wholly owned subsidiaries on May 23, 2024, as part of its restructuring efforts[17] - The company has engaged in parallel-import vehicle dealership and logistics services, with subsidiaries involved in freight forwarding and warehousing[14][19] Tax and Compliance - The Company incurred a total income tax benefit of $(247,275) for the three months ended June 30, 2024, compared to a benefit of $56,997 for the same period in 2023[87] - The effective tax rate for the three months ended June 30, 2024, was 28.5%, compared to 26.8% for the same period in 2023[88] - The Company has not assessed a valuation allowance for deferred tax assets, believing it is more likely than not that all will be realized before expiration[48] Stock and Shares - As of June 30, 2024, there were 24,148,329 shares of Class A common stock and 8,250,000 shares of Class B common stock issued and outstanding[102] - The Company closed its IPO on August 3, 2023, selling 1,250,000 shares of Class A common stock at a price of $4.00 per share, resulting in gross proceeds of $5.0 million[99] - The Company completed a follow-on offering on July 25, 2024, for 6,479,663 shares of Class A common stock at a price of $0.23 per share, with net proceeds intended for working capital and general corporate purposes[110] Economic Environment - The Company experienced a significant decline in the market for new luxury vehicles in the PRC, attributed to weak economic conditions and a shift in consumer demand towards domestically produced electric vehicles[117] - The ongoing economic weakness in the PRC and a shift towards domestically produced EVs have negatively impacted vehicle sales volumes and revenues[128]

Cheetah Net Supply Chain Service Inc. Investor Relations (704) 826-7280 ir@cheetah-net.com FT Global Capital, Inc. acted as the exclusive placement agent in connection with the offering. Hunter Taubman Fischer & Li LLC acted as counsel to the Company and ArentFox Schiff LLP acted as counsel to the placement agent in connection with the transactions. About Cheetah Net Supply Chain Service Inc. This press release contains certain forward-looking statements, including statements that are predictive in nature. ...

Cheetah Net intends to use the net proceeds received from the offering for working capital and general corporate purposes. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Forward-Looking Statements Cheetah Net Supply Chain S ...

CHARLOTTE, N.C., July 25, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. ("Cheetah Net" or the "Company") (NASDAQ:CTNT), a provider of warehousing and logistics services, historically in connection with the sale of parallel-import vehicles sourced in the U.S. to be sold in the PRC market, and more recently for the transportation of other goods between the U.S. and the PRC, today announced that it has entered into a securities purchase agreement with certain investors for a follow-on offering ...

CHARLOTTE, N.C., June 28, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. ("Cheetah Net" or "the Company") (NASDAQ: CTNT) announced today that it intends to relocate its headquarters from North Carolina to Los Angeles ("LA"), the largest hub for import, export, and supply chain operations in the United States. The Company anticipates that this relocation will open significant opportunities in supply chain finance for Cheetah Net. The Company cited several strategic reasons for this move: Prox ...

CHARLOTTE, N.C., May 15, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. ("Cheetah Net" or the "Company") (NASDAQ:CTNT), a supplier of parallel-import vehicles sourced in the U.S. to be sold in the PRC market and a logistics and warehouse service provider, today announced the closing of its follow-on offering of 13,210,000 shares of Class A common stock. Each share of Class A common stock was sold at an offering price of $0.62, for gross proceeds of $8.19 million, before deducting placement a ...

Parallel-import vehicle specialist Cheetah Net Supply Chain Service (NASDAQ:CTNT) — which sources popular automotive brands in the U.S. to be sold in China — is enjoying a dramatically positive swing higher in the market. Interestingly, the rise in CTNT stock comes amid disappointing company-specific news. On Monday, Cheetah posted its results for the first quarter, declaring that it sold 13 vehicles. This count compares very poorly to the year-ago quarter's tally of 82 vehicles. Further, Q1 2024 revenue re ...

CHARLOTTE, N.C., May 14, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. ("Cheetah Net" or the "Company") (NASDAQ:CTNT), a supplier of parallel-import vehicles sourced in the U.S. to be sold in the PRC market and a logistic and warehouse service provider, today announced the pricing of its follow-on offering of 13,210,000 shares of Class A common stock. Each share of Class A common stock is being sold at an offering price of $0.62, for gross proceeds of $8,190,200, before deducting placement ...