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Cheetah Net Supply Chain Service Inc. Announces Second Quarter 2023 Results
المصدر: Nasdaq GlobeNewswire / 05 سبتمبر 2023 17:07:28 America/New_York
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% from 6.3% 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 $12.2 million compared to $20.8 million for the second quarter last year, reflecting lower volume partially offset by a higher average selling price per vehicle. During the quarter, Cheetah sold 93 vehicles compared to 175 last year; the average selling price per vehicle increased by 10.4% to $131,430 compared to $118,794 as a result of the Company’s focus on selling higher-priced vehicles.
Total cost of revenue was $11.0 million compared to $19.5 million for the same period last year, a decline of 43.7% attributable to the lower sales volume. Gross profit was $1.2 million, a decrease of 4.3% compared to $1.3 million for the second quarter of 2022. Gross profit margin increased by 400 basis points to 10.3% from 6.3%, demonstrating the Company’s ability to optimize its cost management and adapt to market dynamics. Average procurement cost per vehicle increased by 6.0% while the average selling price per vehicle increased by 10.6%.
Selling expenses were $0.1 million compared to $36,720 for the prior year period, reflecting staff additions and a change in ocean freight expenses. General and administrative expenses increased to $0.5 million from $0.3 million due to professional fees associated with the Company’s IPO and staff additions.
As a result of the lower gross profit and higher operating expenses, income from operations declined to $0.5 million compared to $0.9 million for the second quarter of 2022.
Total other expenses decreased to $0.3 million from $0.8 million, primarily reflecting decreased interest expenses due to reduced inventory financing and letter of credit financing activities.
Net income was $0.1 million, or $0.01 per share, compared to $81,805, or $0.01 per share, for the second quarter of 2022.
First Half 2023 Financial Results
Revenue for the first six months was $22.4 million compared to $33.6 million for the same period last year, reflecting the lower volume partially offset by higher average selling price per vehicle. During the period, Cheetah sold 175 vehicles compared to 296 last year; the average selling price per vehicle increased by 12.9% to $128,214 compared to $113,537 as a result of the Company’s focus on selling higher-priced vehicles.
Total cost of revenue was $20.0 million compared to $31.8 million for the same period last year, a decline of 37.0% attributable to the lower sales volume. Gross profit was $2.4 million, an increase of 35.0% compared to $1.8 million for the first six months of 2022. Gross profit margin increased by 540 basis points to 10.7% from 5.3% for the first six months of 2022, demonstrating the Company’s ability to optimize its cost management and adapt to market dynamics to enhance its overall financial performance. Average procurement cost per vehicle increased by 3.6% while the average selling price per vehicle increased by 12.9%.
Selling expenses were $0.4 million compared to $0.3 million for the prior year period reflecting staff additions and a change in ocean freight expenses. General and administrative expenses increased to $1.1 million from $0.5 million due to professional fees associated with the Company’s IPO and staff additions.
Income from operations was $0.8 million compared to $0.9 million for the first half of 2022.
Total other expenses decreased to $0.8 million from $1.5 million, primarily reflecting decreased interest expenses due to reduced inventory financing and letter of credit financing activities.
Net income was $47,812, or $0.003 per share, compared to a net loss of $0.5 million, or $(0.03) per share, for the first six months of 2022.
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.comLHA Investor Relations
Jody Burfening
(212)-838-3777
jburfening@lhai.comCHEETAH 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