Cheetah Net Supply Chain Service (CTNT) - 2025 Q2 - Quarterly Results

Company Overview and Q2 2025 Highlights Cheetah Net Supply Chain Service Inc. reports Q2 2025 revenue growth, reduced net loss, and strategic integration efforts Q2 2025 Performance Summary Cheetah Net Supply Chain Service Inc. reported a significant revenue increase of 278.9% for Q2 2025 from its logistics and warehousing business, reaching $354,126. Despite an operating loss, the net loss decreased by 6.8% to $512,528, primarily due to substantial interest income. The company is focusing on integrating recent acquisitions and improving operational efficiency amidst trade policy pressures | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | | Revenue | $354,126 | N/A | +278.9% | | Operating Loss | ($780,849) | N/A | N/A | | Net Loss | ($512,528) | N/A | -6.8% | - CEO Tony Liu noted improving sequential results towards stabilization after tariff turmoil, with proactive measures including increasing labor and logistics services and generating interest income from public offerings proceeds[4] - The company plans to continue integrating recently acquired companies to build a resilient growth foundation and navigate trade policy pressures[4] Second Quarter 2025 Financial Results Q2 2025 financial results detail continuing logistics operations, discontinued vehicle business, and overall net loss Continuing Operations - Logistics and Warehousing Business For the three months ended June 30, 2025, the logistics and warehousing segment generated $354,126 in revenue, significantly boosted by acquisitions. Edward Transit Express Group Inc. contributed 14.9% of total revenue, but saw a 43.7% decrease due to U.S.-China ocean freight suspensions. Cost of revenue was $319,226, resulting in a gross profit of $34,900. General and administrative expenses decreased by 6.9% YoY, while interest income surged by 863.9% due to proceeds from public offerings. The net loss from continuing operations improved to $512,528 from $550,022 in the prior year Q2 2025 Continuing Operations Revenue Breakdown | Source | Revenue (USD) | % of Total Revenue | | :----- | :------------ | :----------------- | | Total | $354,126 | 100% | | Edward Transit Express Group Inc. | $52,684 | 14.9% | | TW & EW Services Inc. | $301,442 | 85.1% | - Revenue from Edward decreased by 43.7% primarily due to a temporary suspension in U.S.-China ocean freight activities in April 2025, partially offset by stabilized trade flow in May and June 2025[6] Q2 2025 Key Financials (Continuing Operations) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | Change (YoY) | | :-------------------------- | :------------ | :------------ | :----------- | | Cost of Revenue | $319,226 | N/A | N/A | | Gross Profit | $34,900 | N/A | N/A | | General & Administrative Expenses | $805,305 | $865,354 | -6.9% | | Share-based Compensation | $10,444 | $0 | N/A | | Interest Income | $272,228 | $28,241 | +863.9% | | Net Loss from Continuing Operations | ($512,528) | ($550,022) | -6.8% | Discontinued Operations - Parallel-Import Vehicle Business In Q2 2024, the discontinued parallel-import vehicle business generated $200,297 in revenue from the sale of only one vehicle, resulting in a gross loss of $15,537 and a net loss of approximately $62,858. This business was significantly impacted by a downturn in the PRC market Q2 2024 Discontinued Operations Financials | Metric | Q2 2024 (USD) | | :-------------------- | :------------ | | Revenue | $200,297 | | Cost of Revenue | $215,843 | | Gross Loss | ($15,537) | | Selling Expenses | $19,422 | | Interest Expenses | $27,899 | | Net Loss | ($62,858) | Overall Net Loss The Company reported an overall net loss of $512,528 for the three months ended June 30, 2025, a decrease from $612,880 in the same period of 2024, reflecting an improved financial position despite ongoing operational challenges Overall Net Loss (Q2) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | | :------- | :------------ | :------------ | | Net Loss | ($512,528) | ($612,880) | Six Months 2025 Financial Results H1 2025 financial results detail continuing logistics operations, discontinued vehicle business, and the overall net loss Continuing Operations - Logistics and Warehousing Business For the six months ended June 30, 2025, revenue from the logistics and warehousing segment reached $833,925, with TWEW contributing the majority (86.2%). Edward's revenue decreased by 32.4% due to U.S.-China trade disruptions. Cost of revenues significantly increased by 743.1% to $742,769, primarily due to TWEW's contribution. General and administrative expenses rose by 10.6% to $1.8 million, driven by increased rental, personnel, and depreciation expenses, partially offset by lower legal and recruiting fees. Interest income saw a substantial 740.1% increase to $480,318. The net loss from continuing operations widened to $1,266,437 from $1,016,370 YoY H1 2025 Continuing Operations Revenue Breakdown | Source | Revenue (USD) | % of Total Revenue | | :----- | :------------ | :----------------- | | Total | $833,925 | 100% | | Edward Transit Express Group Inc. | $115,199 | 13.8% | | TW & EW Services Inc. | $718,726 | 86.2% | - Revenue from Edward decreased by 32.4% due to temporary suspension in U.S.-China ocean freight activities in April 2025, partially offset by stabilized trade flow in May and June 2025[17] H1 2025 Key Financials (Continuing Operations) | Metric | H1 2025 (USD) | H1 2024 (USD) | Change (YoY) | | :-------------------------- | :------------ | :------------ | :----------- | | Cost of Revenue | $742,769 | $88,098 | +743.1% | | General & Administrative Expenses | $1,805,824 | $1,632,996 | +10.6% | | Share-based Compensation | $26,629 | $0 | N/A | | Interest Income | $480,318 | $57,171 | +740.1% | | Net Loss from Continuing Operations | ($1,266,437) | ($1,016,370) | +24.6% | Discontinued Operations - Parallel-Import Vehicle Business For the six months ended June 30, 2024, the discontinued parallel-import vehicle business generated $1.6 million in revenue from 14 vehicle sales. Total selling expenses were $98,262 and interest expenses were $82,358, leading to a net loss of approximately $205,440 H1 2024 Discontinued Operations Financials | Metric | H1 2024 (USD) | | :-------------------- | :------------ | | Revenue | $1.6 million | | Vehicles Sold | 14 units | | Selling Expenses | $98,262 | | Interest Expenses | $82,358 | | Net Loss | ($205,440) | Overall Net Loss The Company reported an overall net loss of $1,266,437 for the six months ended June 30, 2025, compared to a net loss of $1,221,810 for the same period in 2024 Overall Net Loss (H1) | Metric | H1 2025 (USD) | H1 2024 (USD) | | :------- | :------------ | :------------ | | Net Loss | ($1,266,437) | ($1,221,810) | Liquidity and Cash Flow This section reviews the Company's balance sheet, cash flow activities, and liquidity outlook Balance Sheet Highlights As of June 30, 2025, the Company's current assets totaled $9.9 million, primarily comprising $8.7 million in loan receivables and $0.2 million in cash. Current liabilities were approximately $0.9 million. Total stockholders' equity decreased to $11.4 million from $12.6 million at December 31, 2024 Key Balance Sheet Figures (June 30, 2025) | Metric | Amount (USD) | | :-------------------- | :----------- | | Current Assets | $9.9 million | | Cash and Cash Equivalents | $0.2 million | | Loan Receivables | $8.7 million | | Current Liabilities | $0.9 million | | Total Stockholders' Equity | $11.4 million | Cash Flow Activities For the six months ended June 30, 2025, the Company generated $1.3 million in cash from operating activities, used $2.7 million in investing activities, and $138,294 in financing activities Cash Flow Summary (H1 2025) | Activity | Net Cash Flow (USD) | | :-------------------- | :------------------ | | Operating Activities | $1.3 million provided | | Investing Activities | $2.7 million used | | Financing Activities | $138,294 used | Liquidity Outlook Management believes that current measures, including generating cash from operations, debt financing, and potential support from its principal stockholder, will provide sufficient liquidity for at least 12 months. Additional equity financing may be sought if needed for business plan implementation and sustained growth - The Company aims to improve liquidity through cash generation from operations, debt financing, and potential financial support from its principal stockholder[32] - Management is confident that current measures will provide sufficient liquidity for at least 12 months, with potential for additional equity financing if required for growth[32] Forward-Looking Statements This section provides a standard disclaimer for forward-looking statements, noting inherent risks and no obligation for updates Disclaimer on Forward-Looking Statements This section provides a standard disclaimer regarding forward-looking statements, noting they are based on current expectations and assumptions, and are subject to risks outlined in SEC filings. The Company disclaims any obligation to publicly update these statements - Forward-looking statements are based on current expectations and assumptions, protected by the Private Securities Litigation Reform Act of 1995[33] - The Company undertakes no obligation to publicly update any forward-looking statement and advises readers to refer to risk factors in its SEC filings, including Form 10-K[33] Investor Relations Contact This section provides essential contact information for investor relations inquiries Contact Information Contact details for investor relations are provided for inquiries - For investor relations inquiries, contact Cheetah Net Supply Chain Service Inc. at (949) 418-7804 or ir@cheetah-net.com[34] Unaudited Condensed Consolidated Financial Statements This section presents unaudited condensed consolidated balance sheets, statements of operations, and cash flows Unaudited Condensed Consolidated Balance Sheets The balance sheets present the Company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and stockholders' equity. Key changes include a decrease in cash and cash equivalents, an increase in loan receivables, and a decrease in total stockholders' equity Unaudited Condensed Consolidated Balance Sheets (Selected Items) | ASSETS (USD) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $185,186 | $1,650,962 | | Loan receivable | $8,749,445 | $6,088,295 | | TOTAL CURRENT ASSETS | $9,916,789 | $11,037,072 | | TOTAL ASSETS | $13,895,388 | $15,379,454 | | LIABILITIES AND STOCKHOLDERS' EQUITY (USD) | | | | TOTAL CURRENT LIABILITIES | $976,800 | $883,261 | | TOTAL LIABILITIES | $2,517,524 | $2,761,782 | | TOTAL STOCKHOLDERS' EQUITY | $11,377,864 | $12,617,672 | Unaudited Consolidated Statements of Operations The statements of operations provide a detailed breakdown of revenues, costs, and expenses for the three and six months ended June 30, 2025, and 2024. It highlights the significant increase in revenue from continuing operations, the impact of discontinued operations in the prior year, and the overall net loss trends Unaudited Consolidated Statements of Operations (Selected Items) | Metric (USD) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------------ | :------------ | :------------ | :------------ | | REVENUE | $354,126 | $93,563 | $833,925 | $170,397 | | COST OF REVENUE | $319,226 | $45,598 | $742,769 | $88,098 | | GROSS PROFIT | $34,900 | $47,965 | $91,156 | $82,299 | | LOSS FROM OPERATIONS | ($780,849) | ($817,389) | ($1,741,297) | ($1,550,697) | | Interest income | $272,228 | $28,241 | $480,318 | $57,171 | | LOSS FROM CONTINUING OPERATIONS | ($512,528) | ($550,022) | ($1,266,437) | ($1,016,370) | | LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX | — | ($62,858) | — | ($205,440) | | NET LOSS | ($512,528) | ($612,880) | ($1,266,437) | ($1,221,810) | | Loss per share - basic and diluted | ($0.16) | ($0.38) | ($0.39) | ($0.88) | Unaudited Condensed Consolidated Statements of Cash Flows The cash flow statements detail the cash generated from or used in operating, investing, and financing activities for the six months ended June 30, 2025, and 2024. It shows a net decrease in cash for H1 2025, primarily due to significant cash used in investing activities Unaudited Condensed Consolidated Statements of Cash Flows (Selected Items) | Cash Flow Activity (USD) | H1 2025 | H1 2024 | | :-------------------------------- | :------------ | :------------ | | Net cash provided by operating activities | $1,333,668 | $827,980 | | Net cash used in investing activities | ($2,661,150) | ($912,617) | | Net cash used in financing activities | ($138,294) | $5,944,540 | | Net (decrease) increase in cash | ($1,465,776) | $5,859,903 |