Business
Cheetah Net Supply Chain Service Inc. Announces Second Quarter 2023 Results
Gross Profit Margin Expanded 400 Basis Points to 10.3% CHARLOTTE, N.C., Sept. 05, 2023 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“Cheetah” or
About this update from Cheetah Net Supply Chain Service Inc.
[{"type":"text","content":"Gross Profit Margin Expanded 400 Basis Points to 10.3%\nCHARLOTTE, N.C., Sept. 05, 2023 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“Cheetah” or the “Company”) (Nasdaq CM: CTNT) today reported results for the three and six months ended June 30, 2023. Average selling price per vehicle increased by 10.4% to $131,430, compared to $118,794 for the second quarter of 2022.Gross profit margin expanded 400 basis points to 10.3% from 6.3% for the second quarter of 2022.Net cash provided by operating activities was $4.1 million for the first six months of 2023, compared to net cash used by operating activities of $1.7 million for the first six months of 2022.Cash balance of $0.6 million as of June 30, 2023, an increase of $0.5 million compared to December 31, 2022. “Leveraging our keen insight into shifts in demand for luxury automobile brands in China and procurement optimization skills, we delivered a 400-basis point expansion in our gross profit margin for the second quarter, sustained positive net income, and generated positive operating cash flow. Our plan is to continue executing our strategy of focusing on higher-priced automobile models while effectively managing the spread between procurement costs and selling prices to maximize the overall profit of each vehicle transaction,” said Cheetah’s Chairman and CEO Tony Liu. “To further optimize the profitability of our current luxury automotive export business, we are looking to add logistics and warehousing capabilities, either through internal development or acquisitions,” added Mr. Liu. “With an integrated platform of logistics and warehousing services in place, we will be well-positioned to scale our current business by marketing our services to third-party parallel importers. Our long-term ambition is to become an integrated provider of international trade services for small- and medium-sized traders. A key first step toward achieving that ambition was the recent completion of our IPO. We’re just getting started and excited about the future.” Second Quarter 2023 Financial Results Revenue for the quarter was $12.2 million compared to $20.8 million for the second quarter last year, reflecting lower volume partially offset by a higher average selling price per vehicle. During the quarter, Cheetah sold 93 vehicles compared to 175 last year; the average selling price per...