10-Q - CHEETAH NET SUPPLY CHAIN SERVICE INC. (0001951667) (Filer)

Mon, May 5, 9:07 PM (17 days ago)

**Cheetah Net Supply Chain Service Inc. (CTNT) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $479,799 (up 524.5% YoY) driven by acquisitions of TWEW and Edward. - **Gross Profit:** $56,256 (up 63.8% YoY). - **Net Loss:** $753,909 (up 23.8% YoY) due to increased operating expenses. - **Cash Flow:** Positive operating cash flow of $1,768,126, offset by investing and financing outflows. **Key Metrics:** - **Gross Margin:** 11.7% (down from 44.7% YoY). - **Operating Margin:** -198.6% (down from -954.8% YoY). - **EPS (Basic and Diluted):** -$0.23 (improved from -$0.52 YoY). **Operational Highlights:** - **Revenue Growth:** Driven by logistics and warehousing services, particularly from TWEW. - **Expense Management:** Increased general and administrative expenses by 30.3% YoY. - **Cash Flow:** Positive from operations, but negative from investing and financing activities. **Trends and Uncertainties:** - **Business Transformation:** Shift from parallel-import vehicles to logistics and warehousing. - **Market Risks:** Dependence on limited customers and third-party providers. - **Geopolitical Risks:** Trade tensions between the U.S. and PRC. **Future Operations Impact:** - **Growth Strategy:** Focus on expanding logistics and warehousing services. - **Financial Strategy:** Potential need for additional capital to support growth and operations. **Conclusion:** Cheetah Net is undergoing a significant business transformation, shifting from parallel-import vehicles to logistics and warehousing services. While revenue has increased substantially, the company faces challenges in managing expenses and achieving profitability. The future outlook depends on successful execution of the new business strategy and navigating market and geopolitical risks.