Cheetah Net Supply Chain Service Inc. (Nasdaq: CTNT) 2025 Annual Report – Key Investor Highlights

Overview

Cheetah Net Supply Chain Service Inc. (“Cheetah Net” or “the Company”) released its Annual Report for the fiscal year ending December 31, 2025, providing investors with significant updates regarding corporate actions, financial performance, capital structure, and business operations that are highly relevant to shareholders and may materially impact share value.

Key Points and Potential Price-Sensitive Information

• Massive Share Issuance & Capital Raise:
  • On January 27, 2026, the Company entered stock purchase agreements with investors, resulting in the sale of 33,450,000 shares of Class A common stock for an aggregate amount of \$40.14 million. This significantly increased the number of shares outstanding and injected substantial capital into the company.
  • As of March 19, 2026, the number of Class A shares outstanding is 36,177,712, a dramatic increase from prior periods, which could materially dilute existing shareholders depending on the price and use of proceeds.
• Reverse Stock Split Authorization:
  • Stockholders approved a Fifth Amended and Restated Articles of Incorporation on November 7, 2025, authorizing a reverse stock split of common stock at ratios ranging from 1-for-5 to 1-for-20. Additionally, a February 3, 2026 written consent authorized further reverse splits at a ratio up to 1-for-500, to be implemented at the board’s discretion within 12 months.
  • These actions can be highly price sensitive, as reverse splits often impact liquidity, trading price, and investor perception.
• Change of Incorporation & Increase in Authorized Shares:
  • On January 30, 2026, shareholders approved amendments to increase authorized Class A shares to 2,000,000,000 and Class B to 200,000,000. The Company was reincorporated from North Carolina to Delaware on February 2, 2026.
  • This enables further capital raises or acquisitions, but also raises the risk of future dilution.
• Control and Voting Power:
  • FAIRVIEW EASTERN INTERNATIONAL HOLDINGS LIMITED and Huan Liu, as holders of Class B shares, controlled approximately 79.16% of voting power. This concentration of control may affect shareholder rights and future governance.
• Nasdaq Compliance & Convertible Notes:
  • Stockholders approved potential issuance above 20% of outstanding shares upon conversion of certain convertible notes, even at prices below Nasdaq’s “minimum price” rule. Such conversions could be highly dilutive and impact share price.
• Public Float & Market Cap:
  • As of June 30, 2025, public float was \$3,527,055, suggesting relatively low liquidity and market cap, which may amplify volatility with corporate actions.
• Corporate Structure & Reporting Status:
  • The Company is not a well-known seasoned issuer, is a smaller reporting company, and an emerging growth company (per SEC definitions), which impacts regulatory obligations and investor protections.
  • The Company is not a shell company and has filed all required reports.
• Business Model & Industry:
  • Cheetah Net operates in logistics and warehousing services, with additional supply chain offerings. The report references revenue share and sales performance, but detailed financials are not included in the summary.
• Key Upcoming Risks:
  • The ability to issue a large volume of new shares, implement reverse stock splits, and convert notes at potentially below-market prices are all risk factors for dilution and downward price pressure.
  • Concentrated voting control and frequent amendments to capital structure may affect minority shareholder interests and lead to uncertainty.

Items for Shareholders to Watch

• Potential for Further Dilution: With authorized shares increased and convertible note conversions allowed below Nasdaq minimums, shareholders should monitor for future offerings or conversions that may impact share value.
• Reverse Stock Split Implementation: The board has wide discretion to implement one or more reverse splits up to a 1-for-500 ratio. Such actions may impact trading price, liquidity, and perceptions.
• Control by Class B Shareholders: Majority voting power is currently held by a small group, impacting governance and corporate direction.
• Nasdaq Compliance: Issuance below the minimum price rule may trigger compliance concerns and affect trading status.
• Low Market Cap and Float: Investors should be aware of the risks associated with thinly traded stocks, which can experience outsized price movements.

Conclusion

Cheetah Net Supply Chain Service Inc. has undergone significant structural and capital changes in 2025 and early 2026, including a massive increase in shares outstanding, multi-phase reverse stock split authorizations, and potential dilutive convertible note conversions. These actions are highly material and could substantially impact share price, liquidity, and shareholder value. Investors should closely monitor future board actions regarding reverse splits, capital raises, and note conversions, as well as the concentration of voting power in Class B shareholders.

Disclaimer

The above article is based on the Company’s 2025 Annual Report and related SEC filings. Investors are advised to conduct their own due diligence and consult professional financial advisors before making any investment decisions. The information herein does not constitute investment advice nor a recommendation to buy or sell any securities.

View CHEETAH NET SUPPLY CHAIN SERVICE INC. Historical chart here