Cheetah Net Supply Chain Service Inc. Announces Second Quarter 2023 Results
- Gross profit margin expanded 400 basis points to 10.3%. Average selling price per vehicle increased by 10.4% to $131,430. Net cash provided by operating activities was $4.1 million for the first six months of 2023. Cash balance increased to $0.6 million compared to December 31, 2022.
- None.
Gross Profit Margin Expanded 400 Basis Points to
CHARLOTTE, N.C., Sept. 05, 2023 (GLOBE NEWSWIRE) -- Cheetah Net Supply Chain Service Inc. (“Cheetah” or the “Company”) (Nasdaq CM: CTNT) today reported results for the three and six months ended June 30, 2023.
- Average selling price per vehicle increased by
10.4% to$131,430 , compared to$118,794 for the second quarter of 2022. - Gross profit margin expanded 400 basis points to
10.3% from6.3% for the second quarter of 2022. - Net cash provided by operating activities was
$4.1 million for the first six months of 2023, compared to net cash used by operating activities of$1.7 million for the first six months of 2022. - Cash balance of
$0.6 million as of June 30, 2023, an increase of$0.5 million compared to December 31, 2022.
“Leveraging our keen insight into shifts in demand for luxury automobile brands in China and procurement optimization skills, we delivered a 400-basis point expansion in our gross profit margin for the second quarter, sustained positive net income, and generated positive operating cash flow. Our plan is to continue executing our strategy of focusing on higher-priced automobile models while effectively managing the spread between procurement costs and selling prices to maximize the overall profit of each vehicle transaction,” said Cheetah’s Chairman and CEO Tony Liu.
“To further optimize the profitability of our current luxury automotive export business, we are looking to add logistics and warehousing capabilities, either through internal development or acquisitions,” added Mr. Liu. “With an integrated platform of logistics and warehousing services in place, we will be well-positioned to scale our current business by marketing our services to third-party parallel importers. Our long-term ambition is to become an integrated provider of international trade services for small- and medium-sized traders. A key first step toward achieving that ambition was the recent completion of our IPO. We’re just getting started and excited about the future.”
Second Quarter 2023 Financial Results
Revenue for the quarter was
Total cost of revenue was
Selling expenses were
As a result of the lower gross profit and higher operating expenses, income from operations declined to
Total other expenses decreased to
Net income was
First Half 2023 Financial Results
Revenue for the first six months was
Total cost of revenue was
Selling expenses were
Income from operations was
Total other expenses decreased to
Net income was
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 SEC, including its registration statement on Form S-1, as amended, under the caption “Risk Factors.”
For more information, please contact:
Cheetah Net Supply Chain Service Inc.
Robert W. Cook
Chief Financial Officer
(704) 972-0209
robert.c@cheetah-net.com
LHA Investor Relations
Jody Burfening
(212)-838-3777
jburfening@lhai.com
CHEETAH NET SUPPLY CHAIN SERVICE INC. | |||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
REVENUE | $ | 12,223,026 | $ | 20,788,964 | $ | 22,437,468 | $ | 33,607,035 | |||||||
COST OF REVENUE | |||||||||||||||
Cost of vehicles | 10,319,991 | 18,977,349 | 18,824,494 | 30,736,345 | |||||||||||
Fulfillment expenses | 650,666 | 503,452 | 1,217,548 | 1,096,004 | |||||||||||
Total cost of revenue | 10,970,657 | 19,480,801 | 20,042,042 | 31,832,349 | |||||||||||
GROSS PROFIT | 1,252,369 | 1,308,163 | 2,395,426 | 1,774,686 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Selling expenses | 141,340 | 36,720 | 419,123 | 289,107 | |||||||||||
General and administrative expenses | 565,400 | 347,302 | 1,146,470 | 582,850 | |||||||||||
Total operating expenses | 706,740 | 384,022 | 1,565,593 | 871,957 | |||||||||||
INCOME FROM OPERATIONS | 545,629 | 924,141 | 829,833 | 902,729 | |||||||||||
OTHER INCOME (EXPENSES) | |||||||||||||||
Interest expense, net | (334,855 | ) | (819,921 | ) | (771,914 | ) | (1,533,109 | ) | |||||||
Other income, net | 1,968 | 2,134 | 3,902 | 4,246 | |||||||||||
Total other expenses, net | (332,887 | ) | (817,787 | ) | (768,012 | ) | (1,528,863 | ) | |||||||
INCOME (LOSS) BEFORE INCOME TAX PROVISION | 212,742 | 106,354 | 61,821 | (626,134 | ) | ||||||||||
Income tax provision | 56,997 | 24,549 | 14,009 | (153,242 | ) | ||||||||||
NET INCOME (LOSS) | $ | 155,745 | $ | 81,805 | $ | 47,812 | $ | (472,892 | ) | ||||||
Earnings (loss) per share - basic and diluted | $ | 0.01 | $ | 0.01 | $ | 0.00 | $ | (0.03 | ) | ||||||
Weighted average shares - basic and diluted | 16,666,000 | 15,000,000 | 16,666,000 | 15,000,000 |
CHEETAH NET SUPPLY CHAIN SERVICE INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET DATA | |||||
June 30, | December 31, | ||||
2023 | 2022 | ||||
ASSETS | |||||
CURRENT ASSETS: | |||||
Cash | $ | 592,126 | $ | 58,381 | |
Accounts receivable | 2,146,882 | 7,086,651 | |||
Inventories, net | 6,962,926 | 5,965,935 | |||
TOTAL CURRENT ASSETS | 10,833,602 | 14,492,525 | |||
TOTAL ASSETS | $ | 11,144,196 | $ | 14,719,404 | |
TOTAL CURRENT LIABILITIES | 7,712,446 | 12,195,607 | |||
TOTAL LIABILITIES | 8,551,029 | 12,874,049 | |||
TOTAL STOCKHOLDERS’ EQUITY | 2,593,167 | 1,845,355 | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 11,144,196 | $ | 14,719,404 |
CHEETAH NET SUPPLY CHAIN SERVICE INC. | |||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
Six Months Ended | |||||||
June 30, | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 47,812 | $ | (472,892 | ) | ||
Net cash provided by (used in) operating activities | 4,145,363 | (1,668,223 | ) | ||||
Cash flows from financing activities: | |||||||
Net cash (used in) provided by financing activities | (3,611,618 | ) | 1,372,452 | ||||
Net increase (decrease) in cash | 533,745 | (295,771 | ) | ||||
Cash, beginning of period | 58,381 | 500,977 | |||||
Cash, end of period | $ | 592,126 | $ | 205,206 |