Cheetah Net Supply Chain Service Inc. Year 2024 Recap
Cheetah Net Supply Chain Service Inc. Reports 2024 Results
IRVINE, Calif. — Cheetah Net Supply Chain Service Inc. (“Cheetah” or the “Company”) (Nasdaq: CTNT), known for its logistics and warehousing services, has released its financial results for the year ending December 31, 2024. This year marked significant challenges and strategic transformations for the company.
Key Highlights from 2024
This year, Cheetah faced continuous challenges due to unfavorable market conditions, particularly impacting the parallel-import vehicle sales segment. The industry saw a notable downturn in sales volumes and margins, leading the board of directors to approve a strategic shift. The Company decided to discontinue its parallel-import vehicle business, which suffered a staggering 95.7% drop in sales, plummeting from $38.3 million in 2023 to $1.6 million.
Transformation to Logistics and Warehousing
In February 2024, in a bid to pivot its business model, Cheetah launched its logistics and warehousing segment by acquiring Edward Transit Express Group, Inc. for $1.5 million. This transaction included cash payments and stock issuance, reflecting a careful assessment of the market. Additionally, in July, Cheetah moved its headquarters to Irvine, California. This relocation is strategic, placing the company closer to the major ports of Los Angeles and Long Beach, enhancing its operational efficiency in logistics.
Financial Improvements and Cost Control
Despite the downturn in vehicle sales, Cheetah reported a total revenue of $455,805 from continuing logistics operations in 2024 after launching its logistics business. The cost of revenue stood at $277,293, resulting in a gross profit of $178,512. Cheetah is committed to improving efficiencies, expanding service offerings, and boosting its market presence in 2025.
Examination of Financial Results
The financial results for 2024 reflect significant losses stemming from both operations and discontinued segments. The total net loss amounted to $5.2 million, attributed to net losses of $3.2 million from continuing operations and $2.0 million from discontinued operations. This stark difference highlights the challenges faced by Cheetah in maintaining profitability amid market volatility.
Operational Adjustments and Strategic Focus
General and administrative expenses increased by 66.3% to $3.6 million, mainly due to staffing expansions to support the logistics segment. Interest income skyrocketed to $320,472, thanks to investments funded by the proceeds from public offerings completed earlier. Management is optimistic about future profitability as it explores new revenue streams and adjusts operations in line with market needs.
Outlook for Cheetah Net Supply Chain Service Inc.
Cheetah is aligning its strategic initiatives to cater to the growing demand for logistics services, particularly among small- and medium-sized enterprises. The firm anticipates a longer than expected timeline before reaping ideal profits; however, Cheetah’s leadership feels confident about the potential for substantial growth within its new business focus.
Frequently Asked Questions
What major changes did Cheetah Net Supply Chain Service Inc. make in 2024?
The Company discontinued its parallel-import vehicle business due to declining sales and launched its logistics and warehousing services, acquiring Edward Transit Express Group.
How did the financial performance for 2024 compare to 2023?
Cheetah reported total revenues of $455,805 from its logistics operations, contrasting starkly against discontinued operations that saw a massive 95.7% drop in sales.
What was the Company’s total net loss for 2024?
The total net loss for the year 2024 was $5.2 million, reflecting challenges from both its continuing and discontinued operations.
How has Cheetah's operational approach shifted?
The operational focus has pivoted towards enhancing logistics and warehousing capabilities, aiming to support small- and medium-sized businesses in international trade.
What future outlook does Cheetah have after making these changes?
Cheetah aims to capitalize on emerging opportunities in logistics, with a focus on improving operational efficiencies and expanding its service offerings in the upcoming periods.
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