Cheetah Net Supply Chain Service Inc. Reports 524.5% Revenue Growth but Faces Net Loss in Latest 10-Q

Cheetah Net Supply Chain Service Inc. reported significant financial changes in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated revenue of $479,799, a substantial increase from $76,834 in the same period last year, marking a growth of 524.5%. This increase is attributed primarily to the acquisition of TWEW, which contributed significantly to the logistics and warehousing segment. However, the company also reported a net loss of $753,909, compared to a loss of $608,930 in the prior year, reflecting ongoing challenges in transitioning its business model.

The company's operational landscape has shifted dramatically, particularly with the discontinuation of its parallel-import vehicle business, which was officially approved by the board on March 3, 2025. This decision followed a steep decline in vehicle sales, which plummeted from 82 units in the first quarter of 2023 to just 13 units in the first quarter of 2024. The company faced a 95.7% drop in revenue from this segment, leading to a strategic pivot towards logistics and warehousing services, which are now its primary focus.

In terms of operational metrics, Cheetah Net's total current assets decreased to $10.2 million as of March 31, 2025, down from $11.0 million at the end of 2024. The company’s cash and cash equivalents also fell significantly to $324,142 from $1.65 million. The total liabilities decreased to $2.63 million, down from $2.76 million, indicating some improvement in financial management. The company’s employee headcount has increased as it expands its logistics operations, although specific figures were not disclosed.

Looking ahead, Cheetah Net aims to enhance its market presence in logistics and warehousing, particularly following its acquisitions of Edward and TWEW. The company is focused on improving operational efficiencies and expanding its service offerings. However, management has acknowledged that the transition may take longer than anticipated and could be adversely affected by external market conditions, including trade policies and economic factors in both the U.S. and China. The company remains cautious about its future, emphasizing the need for strategic execution to achieve profitability in its new business model.