Cheetah Net Supply Chain Service Inc. Reports 278.5% Revenue Growth but Net Loss in Q2 2025

Cheetah Net Supply Chain Service Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated total revenue of $354,126 for the three months ended June 30, 2025, a substantial increase of 278.5% compared to $93,563 in the same period of 2024. For the six months ending June 30, 2025, revenue reached $833,925, up 389.4% from $170,397 in the prior year. Despite this growth, the company reported a net loss of $512,528 for the second quarter and a total net loss of $1,266,437 for the first half of 2025, compared to losses of $612,880 and $1,221,810, respectively, in the same periods of 2024.

The financial performance reflects a strategic shift following the discontinuation of the parallel-import vehicle business, which was formally approved by the board on March 3, 2025. This decision was influenced by declining sales and market conditions, leading to a 95.7% drop in vehicle sales revenue from $38.3 million in 2023 to $1.6 million in 2024. The company has since focused on logistics and warehousing services, bolstered by acquisitions of Edward and TWEW, which contributed significantly to the revenue growth in the logistics segment.

Operationally, Cheetah Net has seen a transformation in its business model, with the logistics and warehousing services now accounting for the majority of its revenue. The company reported that 85.1% of its total revenue for the second quarter of 2025 came from TWEW, while Edward contributed 14.9%. The total cost of revenues surged to $319,226 in the second quarter, primarily due to the costs associated with TWEW's operations. General and administrative expenses decreased slightly to $805,305, reflecting cost-saving measures and a reduction in legal and accounting fees.

As of June 30, 2025, Cheetah Net's total assets were valued at $13.9 million, down from $15.4 million at the end of 2024. The company reported current assets of $9.9 million, including $8.7 million in loan receivables. Current liabilities totaled approximately $976,800, leading to a working capital balance of $8.9 million. The company continues to navigate its transition to logistics services while managing its financial obligations, including $590,352 in long-term borrowings.

Looking ahead, Cheetah Net's management remains focused on improving operational efficiencies and expanding its market presence in the logistics sector. However, the company acknowledges that the ongoing transformation may take longer than anticipated to yield profitable results, influenced by external market conditions and internal operational management. The company is also monitoring potential impacts from political and economic factors, particularly concerning trade relations between the U.S. and China, which could affect its logistics operations.