Cheetah Net Supply Chain Service, Inc. Class A ( (CTNT) ) has released its Q3 earnings. Here is a breakdown of the information Cheetah Net Supply Chain Service, Inc. Class A presented to its investors.
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Cheetah Net Supply Chain Service, Inc. operates in the logistics and warehousing sector, focusing on providing streamlined supply chain solutions. The company has recently transitioned from its previous business model centered around parallel-import vehicles to logistics services, capitalizing on international trade between China and the U.S.
In the third quarter of 2024, Cheetah Net Supply Chain Service, Inc. reported a significant transformation in its business operations, highlighted by the relocation of its headquarters to Irvine, California, to better align with its strategic shift. The company also completed a public offering, raising $1.1 million in net proceeds aimed at enhancing working capital and supporting general corporate purposes.
Financially, the company experienced a steep decline in revenue, reporting $61,208 from its logistics operations compared to $10.0 million in the same quarter of 2023. This decline is attributed to the downturn in its parallel-import vehicle business. Despite the drop in revenue, the gross margin improved from 11.6% to 48.8%, and the company recognized increased general and administrative expenses due to its strategic shift and the associated costs of new business operations.
The company reported a net loss of $1.8 million for the third quarter of 2024, as opposed to a net income of $0.1 million in the previous year. The nine-month financial results reflect a similar trend, with revenues declining by 94.3% year-over-year, primarily due to the decreased vehicle sales and a subsequent strategic refocus on logistics. Despite these challenges, Cheetah Net Supply Chain Service, Inc. maintains a solid liquidity position, with $5.3 million in cash and a working capital of $11.6 million as of September 2024.
Looking ahead, the management remains optimistic about the company’s strategic transformation, emphasizing ongoing efforts to explore new business opportunities within the logistics sector. While the immediate financial results reflect a challenging transition period, the company is confident in its long-term growth prospects driven by its new business focus.
