Business
Cheetah Net Supply Chain Service Inc. Announces Second Quarter 2024 Results and Provides Corporate Update
CHARLOTTE, N.C., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“Cheetah” or “the Company”) (Nasdaq CM: CTNT), a provider of
About this update from Cheetah Net Supply Chain Service Inc.
[{"type":"text","content":"CHARLOTTE, N.C., Aug. 13, 2024 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“Cheetah” or “the Company”) (Nasdaq CM: CTNT), a provider of warehousing and logistics services and a seller of parallel-import vehicles sourced from the U.S. market and sold into the People’s Republic of China (the “PRC”), today reported results for the quarter ended June 30, 2024 and provided a corporate update. Recent Highlights Challenging market conditions in the PRC, first reported with respect to the Company’s financial performance during the second half of 2023, have continued into 2024. The Company’s three- and six- month financial results were impacted by these unfavorable market conditions, resulting in a significant decline in revenue. Adverse market conditions continue to severely depress or eliminate the margin between U.S. retail prices of select luxury car models and their wholesale prices in the parallel-vehicle market.The Company sold one vehicle during the second quarter of 2024, compared with 93 vehicles for the same period in 2023. The vehicle sales revenue for the second quarter of 2024 amounted to $0.2 million compared with $12.2 million for the same period in 2023. The decline in revenue resulted in a net loss of $0.6 million during the second quarter of 2024 compared with income of $0.2 million during the second quarter of 2023.The Company is moving beyond the parallel-import vehicle business with the goal of becoming an integrated provider of international trade services and financing for small- and medium-sized traders. The Company generated more than $70,000 in warehousing and logistics revenue from non-vehicle-related wholesalers during the second quarter of 2024 following the acquisition of Edward Transit Express Group Inc. in February 2024.In June 2024, the Company announced its planned headquarters move from Charlotte, NC to Irvine, CA to be closer to the important Southern California market, take advantage of well-developed infrastructure and logistics networks that already exist in the region, capitalize on the area’s large consumer presence, and gain access to California’s skilled labor force. Tony Liu, Cheetah’s Chairman and CEO commented, “The parallel-vehicle import market has continued to be significantly affected by the adverse market conditions resulting from significant price discounting by luxury i...