Business
Cheetah Net Supply Chain Service Inc. Announces Full Year 2023 Results and Provides Corporate Update
CHARLOTTE, N.C., March 18, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“We,” “Our,” “Cheetah,” or the “Company”) (Nasdaq CM: CTNT), a
About this update from Cheetah Net Supply Chain Service Inc.
[{"type":"text","content":"CHARLOTTE, N.C., March 18, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“We,” “Our,” “Cheetah,” or the “Company”) (Nasdaq CM: CTNT), a supplier of parallel-import vehicles sourced in the U.S. to be sold in the People’s Republic of China (“PRC”) market, today reported results for the financial year ended December 31, 2023 and provided a corporate update. Recent Highlights Challenging market conditions in the PRC have resulted in an industry-wide slowdown of vehicle sales, including price and volume drops in the luxury segment. The Company’s results have been impacted by unfavorable market conditions, experiencing declines in revenue and profit. The favorable margin between the U.S. retail prices of select luxury car models and their wholesale prices in the parallel-vehicle market has been significantly compressed or eliminated.The Company continues to focus on the most popular vehicles in the luxury end of the market, where profit opportunities can still be realized.The Company’s 2023 sales declined by 30.5% from 2022, to $38.4 million due to lower sales volume. Net profit after tax amounted to $0.1 million, and positive cash flow from operations rose to $5.6 million. The Company ended 2023 with a cash balance of $0.4 million.In February 2024, the Company acquired Edward Transit Express Group, Inc. (“Edward”), a California-based common carrier specializing in ocean and air transportation services, for $1.5 million. The acquisition of Edward is being used to launch warehousing and logistics services to third-party parallel-import vehicle and other wholesalers, and to enhance the offering of the Company’s financial services business, which was launched in October 2022.The Company is moving quickly to expand beyond the parallel-import vehicle business with the goal of becoming an integrated provider of international trade services for small- and medium-sized traders. Cheetah Chairman and CEO Tony Liu commented, “Weakening conditions in the PRC market beginning in the second half of 2023 accelerated during the fourth quarter and have continued into 2024. Sales volumes have declined and luxury vehicle manufacturers have responded by discounting the prices of their vehicles below MSRP. As a result, our ability to profit from the sale of parallel-vehicle exports has been significantly challenged. Cheetah remains focus...