Cheetah Net Supply Chain Service Inc. Announces First Quarter 2025 Results and Provides Corporate Update

Core Insights - Cheetah Net Supply Chain Service Inc. has shifted its focus from parallel-import vehicle sales to logistics and warehousing services due to challenging market conditions in China and trade tensions with the U.S. [2][3] - The company reported a significant decline in sales volume in the parallel-import vehicle segment, leading to the discontinuation of this business line [2][3] - The logistics and warehousing segment generated $479,799 in revenue for Q1 2025, with TWEW contributing 87% of this revenue [3][4] Recent Highlights - The parallel-import vehicle business faced a significant downturn, prompting the board to approve its discontinuation [2] - The company is focusing on operational efficiencies and expanding service offerings to position itself for future growth [2] - The newly acquired subsidiary TWEW outperformed the earlier acquisition, Edward Transit Express Group, indicating a positive shift in business strategy [2] Financial Performance - For Q1 2025, total revenue was $479,799, with a gross profit of $56,256 [3][4] - General and administrative expenses increased by 30.3% to $1.0 million, primarily due to hiring and operational expansions [5] - Interest income surged to $208,090, a 619.3% increase compared to the same period in 2024, driven by interest on short-term loans and certificates of deposit [7] Losses and Discontinued Operations - The company reported a net loss of $753,909 for Q1 2025, compared to a net loss of $608,930 in Q1 2024 [8][10] - The discontinued parallel-import vehicle business generated $1.4 million in revenue in Q1 2024 but incurred a gross loss of $9,283 [9][10] Liquidity and Cash Flow - As of March 31, 2025, current assets totaled $10.2 million, with cash and cash equivalents at $0.3 million [12] - The company reported net cash flow of $1.8 million from operating activities for Q1 2025 [13] - Total stockholders' equity decreased to $11.9 million from $12.6 million as of December 31, 2024 [13]