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

1. CTNT reports reduced revenue in parallel-import vehicle sales. 2. Company shifts focus to logistics and warehousing amid trade tensions. 3. First-quarter revenue from logistics services was $479,799. 4. Net loss increased to $753,909 compared to last year. 5. Liquidity remains stable due to cash flow from operations.

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Why Bearish?

The company's net losses and declining revenue from discontinued operations suggest operational challenges. Historical examples show similar shifts often lead to reduced investor confidence.

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Current challenges and a shift in business focus impact investor sentiment and perceptions of future growth.

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The immediate financial results indicate potential short-term pressures affecting stock performance. In the longer term, if operational improvements materialize, outlook may change.

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IRVINE, May 05, 2025 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“Cheetah” or the “Company”) (Nasdaq CM: CTNT), a provider of logistics and warehousing services, today reported results for the quarter ended March 31, 2025 and provided a corporate update. Recent Highlights Continuous challenging market conditions in the People’s Republic of China (the “PRC”) have resulted in an industry-wide slowdown of parallel-import vehicle sales, including price and volume drops in the luxury car models and the Company’s margin was significantly compressed or eliminated. The Company experienced significantly dropped sales volume in the parallel-import vehicle segment during the year ended December 31, 2024. On March 5, 2025, Company’s board of directors (the “Board”) approved the discontinuation of its parallel-import vehicle business. Tony Liu, Cheetah’s Chairman and CEO commented, “Our financial performance during the first quarter of 2025 reflected the consequences of our business strategic shift to logistics and warehousing under the significant challenging market conditions, such as the U.S. tariff policies on international trade and the increasing trade tensions between the U.S. and the PRC. By focusing on improving operational efficiencies and expanding service offerings, our newly acquired subsidiary, TW & EW Services Inc (“TWEW”), had higher revenues than the earlier acquired subsidiary, Edward Transit Express Group Inc. (“Edward”), reflecting our business transformation and strategic shift underway. Management will continue to take initiatives to seek out new business opportunities. We estimate it will take longer than expected to generate ideal profits but have confidence that we are positioning the Company for substantial future growth in this business.” First Quarter 2025 Financial Results Continuing operations- logistics and warehousing business For the three months ended March 31, 2025, the Company reported revenue of $479,799 from the logistics and warehousing services segment, including $62,515, or 13.0%, of its total revenue from Edward and $417,284, or 87.0%, of its total revenue from TWEW. Revenue from Edward decreased by 18.6%, primarily due to the decreased international trade flow resulting from the trade tensions between China and the U.S. The Company also reported cost of revenue of $423,543 for the three months ended March 31, 2025, mainly consisted of the labor costs for TWEW and ocean freight service costs for Edward. The Company reported a gross profit of $56,256 for the three months ended March 31, 2025. General and administrative expenses for the Company’s continuing operations increased by $0.2 million, or 30.3%, to $1.0 million for the three months ended March 31, 2025 from $0.8 million for the three months ended March 31, 2024, primarily due to (i) an increase of $0.1 million in personnel-related expenses, which was attributed to the hiring of additional staff to support the newly launched logistics and warehousing segment, (ii) an increase of $0.1 million in rental and leases following the acquisition of Edward and a new office workspace in California in July 2024, (iii) an increase of $22,547 in travel and entertainment expenses as part of business development efforts and client engagement, (iv) an increase of $27,067 in depreciation and amortization expenses, primarily due to the acquisition of new fixed assets and recorded intangible assets from the Edward and TWEW acquisitions, (v) an increase of 14,716 in other miscellaneous general and administration expenses during the three months ended March 31, 2025, partially offset by a decrease of $51,911 in legal and accounting fees due to additional professional fees for preparing a registration statement on Form S-1 during the first quarter of 2024. a decrease of $19,237 in insurance expenses resulting from a change in the Company’s insurance provider. Share-based compensation expenses were $16,185 and nil for the three months ended March 31, 2025 and 2024, respectively. Interest income from continuing operations was $208,090 for the three months ended March 31, 2025, compared to $28,930 for the three months ended March 31, 2024, representing an increase of $179,160, or 619.3%. The significant increase was primarily driven by interest earned on short-term loan receivables and certificates of deposit, funded by the net proceeds from the Company’s initial public offering and its public offerings closed in May and July 2024. The Company had a net loss of $753,909 from our continuing operations for the three months ended March 31, 2025, compared to net loss of $608,930 for the same period of 2024. Discontinued Operations- parallel-import vehicle business During the three months ended March 31, 2024, the Company generated revenue of $1.4 million from the parallel-vehicle business. Only 13 units of vehicles were sold following the significant downturn of parallel-import vehicle business as stated under “Recent Highlights.” The Company also reported cost of revenue of $1.4 million, mainly the fulfillment expenses and a gross loss of $9,283 of the discontinued business for the three months ended March 31, 2024. Selling Expenses and interest expenses for the discontinued parallel-import vehicle business was $78,840 and 54,459, respectively, for the three months ended March 31, 2024. Net loss for the discontinued operations was approximately $142,582 for the three months ended March 31, 2024. As a result of the above factors, the Company reported an overall net loss of $753,909 for the first quarter of 2025, as compared to net income of $608,930 in the same period of 2024. Liquidity and Cash Flow As of March 31, 2025, the Company had current assets of $10.2 million, consisting of cash and cash equivalents of $0.3 million, $9.1 million in loan receivables, $0.5 million of other receivables, $0.1 million of accounts receivable, and $0.2 million in prepaid expenses other current assets from continuing operations. The Company’s current liabilities, all of which related to continuing operations, totaled approximately $0.9 million, consisting of $0.5 million of operating lease liabilities, $0.3 million of other payables, and $0.1 million of loan payable, including the current portion of long-term borrowings. During the three months ended March 31, 2025, the Company reported net cash flow of $1.8 million provided by operating activities, $3.0 million provided by investing activities, and $68,539 used in financing activities. As of March 31, 2025, the Company had total stockholders’ equity of $11.9 million, compared to $12.6 million as of December 31, 2024. The Company is working to further improve its liquidity and capital sources primarily by generating cash from operations, debt financing, and, if needed, financial support from its principal stockholders. If necessary to fully implement its business plan and sustain continued growth, the Company may seek additional equity financing from outside investors. Based on the current operating plan, management believes that the aforementioned measures collectively will provide sufficient liquidity to meet the Company’s future liquidity and capital requirements for at least 12 months from the issuance date of its consolidated financial statements. Forward-Looking Statements This press release contains certain forward-looking statements, including statements that are predictive in nature. Forward-looking statements are based on the Company’s current expectations and assumptions. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. These statements may be identified by the use of forward-looking expressions, including, but not limited to, “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s filings with the U.S. Securities and Exchange Commission, including its annual report on Form 10-K under the caption “Risk Factors.” For more information, please contact: Cheetah Net Supply Chain Service Inc.  Investor Relations(949)4187804ir@cheetah-net.com CHEETAH NET SUPPLY CHAIN SERVICE INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA     March 31,     December 31,   2025  2024*   (Unaudited)   ASSETS      CURRENT ASSETS:      Cash and cash equivalents $324,142  $1,650,962 Accounts receivable  59,059   47,976 Loan receivable  9,114,695   6,088,295 Other receivable  500,862   370,696 Prepaid expenses and other current assets  247,188   338,642 Current assets of discontinued operations  —   2,540,501 TOTAL CURRENT ASSETS  10,245,946     11,037,072 NONCURRENT ASSETS:      Property, plant, and equipment, net  388,513   398,395 Operating lease right-of-use assets  1,693,790   1,836,521 Deferred tax assets, net  600   — Intangibles, net  1,035,000   1,063,072 Goodwill  1,044,394   1,044,394 Other non-current asset  100,000   — TOTAL ASSETS $14,508,243   $ 15,379,454        LIABILITIES AND STOCKHOLDERS’ EQUITY      CURRENT LIABILITIES:      Accounts payable $33,010  $18,992 Current portion of long-term debt  35,013   34,577 Loan payable from premium finance  60,871   120,461 Tax payable  5,200   — Operating lease liabilities, current  524,140   438,351 Accrued liabilities and other current liabilities  257,388   217,980 Current liabilities of discontinued operations  —   52,900 TOTAL CURRENT LIABILITIES  915,622     883,261 NONCURRENT LIABILITIES:      Long-term debt, net of current portion  600,634   610,020 Operating lease liabilities, net of current portion  1,112,039   1,268,501 TOTAL LIABILITIES $2,628,295   $ 2,761,782        STOCKHOLDERS’ EQUITY      Common stock, $0.0001 par value, 1,000,000,000 shares authorized; 3,218,886 and 1,119,750 shares issued and outstanding, including*:      Class A common stock, $0.0001 par value, 891,750,000 shares authorized, 2,672,011 and 604,125 shares issued and outstanding  267   267 Class B common stock, $0.0001 par value, 108,250,000 shares authorized, 546,875 and 515,625 shares issued and outstanding  55   55 Additional paid-in capital  17,314,146   17,297,961 Accumulated deficit  (5,434,520)  (4,680,611)TOTAL STOCKHOLDERS’ EQUITY   11,879,948    12,617,672        TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $14,508,243   $ 15,379,454  * Retrospectively adjusted for the reverse split of the Company’s common stock at a ratio of 1-for-16, which took effect on October 21, 2024 (the “Reverse Stock Split”). CHEETAH NET SUPPLY CHAIN SERVICE INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS     For the Three Months Ended March 31,      2025     2024**    (Unaudited)  REVENUE $479,799   $ 76,834        COST OF REVENUE  423,543   42,500        GROSS PROFIT  56,256     34,334        OPERATING EXPENSES      General and administrative expenses  1,000,519   767,642 Share-based compensation expenses  16,185   — TOTAL OPERATING EXPENSES  1,016,704   767,642        LOSS FROM OPERATIONS  (960,448)  (733,308)       OTHER INCOME (EXPENSES)      Interest income  208,090   28,930 Interest expenses  (8,812)  (8,305)Other income  12,616   621 OTHER INCOME, NET  211,894   21,246        LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES  (748,554 )   (712,062)       Income tax provision (benefits)  5,355   (245,714)       LOSS FROM CONTINUING OPERATIONS   (753,909)   (466,348)       LOSS FROM DISCONTINUED OPERATIONS, NET OF TAX**  —    (142,582)       NET LOSS $(753,909) $ (608,930)       Loss from continuing operations per ordinary share - basic and diluted* $(0.23) $(0.40)Loss from discontinued operations per ordinary share - basic and diluted* $0.00  $(0.12)Loss per share - basic and diluted* $(0.23) $(0.52)Weighted average shares - basic and diluted*  3,218,886     1,171,307  *  Retrospectively adjusted for the Reverse Stock Split. ** Reclassification- certain reclassifications have been made to the financial statements for the period ended March 31, 2024, to conform to the presentation for the discontinued operations, with no effect on previously reported net income (loss). UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY     Common Stock*                                Class A     Class B    Additional      Total  Common     Common    paid-in Subscription Accumulated Stockholders’     stock    Amount     stock    Amount    capital    Receivable    Deficit    EquityBalance, December 31, 2024 2,672,011 $267  546,875 $55 $17,297,961 $— $(4,680,611) $12,617,672                         Share-based compensation expenses —  —  —  —  16,185  —  —   16,185 Net loss from continuing operations for the year —  —  —  —  —  —  (753,909)  (753,909)                        Balance, March 31, 2025 2,672,011 $267  546,875 $55 $17,314,146 $— $(5,434,520) $11,879,948                              Common Stock*                 Class A    Class B    Additional    Retained Earnings Total  Common    Common    paid-in Subscription   Stockholders’     stock    Amount    stock    Amount    capital    Receivable     (Accumulated Deficit)    EquityBalance, December 31, 2023 604,125 $60 515,625 $52 $6,996,275  $(600,000) $508,241  $6,904,628                        Termination of equity classified warrant —  — —  —  (78,125)  —   —   (78,125)Issuance of common stock for acquisition 79,521  8 —  —  899,992   —   —   900,000 Net loss from continuing operations for the year —  — —  —  —   —   (466,348)  (466,348)Net loss from discontinued operations for the year                  (142,582)  (142,582)                       Balance, March 31, 2024 683,646 $68 515,625 $52 $7,818,142  $(600,000) $(100,689) $7,117,573  CHEETAH NET SUPPLY CHAIN SERVICE INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS     For the Three Months Ended   March 31,    2025   2024     (Unaudited)  Cash flows from operating activities:      Net Loss $(753,909) $(608,930)Less: Loss from discontinued operations, net of tax  —   (142,582)Loss from continuing operations  (753,909)  (466,348)Adjustments to reconcile net (loss) income to net cash provided by operating activities:      Depreciation  9,882   2,171 Amortization of operating lease right-of-use assets  79,730   38,560 Amortization of Intangible Assets  28,071   8,714 Share-based compensation expenses  16,185   — Deferred income tax benefits  —   (247,343)Changes in operating assets and liabilities:      Accounts receivable  (11,083)  11,890 Other receivables  (230,166)  (672,295)Prepaid expenses and other current assets  90,856   (35,785)Other payables and other current liabilities  5,734   41,152 Operating lease liabilities  (7,674)  (8,475)Cash used in operating activities-continuing operations  (772,374)  (1,470,341)Cash provided by operating activities-discontinued operations *  2,540,500   3,166,058 Net cash provided by operating activities  1,768,126   1,695,717        Cash flows from investing activities:      Acquisition of business, net of cash acquired  —   (220,117)Loans made to third parties  (3,075,400)  — Loans repayment received from third parties  49,000   172,500 Cash used in investing activities-continuing operations  (3,026,400)  (47,617)Net cash used in investing activities  (3,026,400)  (47,617)       Cash flows from financing activities:      Cash paid for warrant termination  —   (78,125)Repayments of premium finance  (59,590)  (73,713)Repayments of long-term borrowings  (8,949)  (8,068)Borrowing from a related party  —   (13,423)Cash provided by financing activities-continuing operations  (68,539)  (173,329)Cash used in financing activities-discontinued operations*  —   (1,004,565)Net cash used in financing activities  (68,539)  (1,177,894)       Net (decrease) increase in cash  (1,326,813)  470,206 Cash, beginning of year  1,650,955   432,998 Cash, end of year  324,142   903,204 Cash of continuing operations $324,142  $903,204        Supplemental cash flow information      Cash paid for income taxes $155  $— Cash paid for interests $8,812  $7,552        Noncash Financing and investing activities:      Fair value of common stock issued for acquisition $-  $1,700,000  Reclassification- certain reclassifications have been made to the financial statements for the three months ended March 31, 2024, to conform to the presentation for the discontinued operations, with no effect on previously reported net income (loss).

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