Cheetah Net Supply Chain Service Inc. Announces Full-Year 2025 Results and Strategic Corporate Update

Key Highlights

• Revenue Growth: Cheetah Net Supply Chain Service Inc. (“Cheetah” or the “Company”) reported total revenue of \$1,288,536 for the year ended December 31, 2025, up 182.7% from \$455,805 in 2024, reflecting substantial growth following the restructuring of the business into logistics and warehousing.
• Operating Loss: The Company posted an operating loss of \$4,579,576 for 2025, up from \$3,740,546 in 2024. The increase was primarily driven by an impairment loss of \$731,307 relating to intangible assets and goodwill.
• Net Loss: Net loss from continuing operations was \$3,649,703 in 2025, compared to \$3,232,194 in 2024, an increase of 12.9%. Total net loss for 2025 was \$3,649,703, as discontinued operations (parallel-import vehicle business) had no impact in 2025.
• Discontinued Business: The parallel-import vehicle segment was officially discontinued on March 3, 2025, following a board resolution. This segment previously contributed \$1.6 million in revenue in 2024 but generated no revenue in 2025.
• Balance Sheet: As of December 31, 2025, Cheetah had cash and cash equivalents of approximately \$233,217 and a working capital balance of \$7.7 million. The Company also reported a loan receivable from third parties of \$7.4 million, which management believes is sufficient to support ongoing operations and obligations.
• Liquidity Concerns: The Company has incurred net operating losses and negative cash flow from operating activities in 2025, raising going concern risks, but management expects to meet liquidity needs through operations, debt financing, and potentially additional equity financing.
• Impairment and Expenses: A significant impairment loss was recorded due to market conditions affecting the logistics segment, particularly related to the acquisition of Edward Transit Express Group Inc.
• Interest Income: Interest income surged 188.4% to \$924,224 in 2025, primarily from short-term loans and certificates of deposit funded by proceeds from prior public offerings.
• Operational Focus: The Company is committed to improving operational efficiency, cost discipline, and exploring strategic opportunities including partnerships, investments, or acquisitions to drive long-term growth.

Detailed Financials

Revenue Breakdown

• Revenue from Edward Transit Express Group Inc. (“Edward”) was \$214,810 in 2025 (down 32.2% YoY), primarily due to lingering US-China trade tensions and reduced customer demand.
• Revenue from TW & EW Services Inc. (“TWEW”) rose to \$1,073,726 in 2025 from \$138,953 in 2024, reflecting the acquisition and a full year of revenue recognition.

Cost and Gross Profit

• Cost of revenue increased to \$1,121,761 in 2025, up from \$277,293 in 2024, largely due to labor and logistics costs.
• Gross profit decreased to \$166,775 in 2025, down 6.6% from \$178,512 in 2024.

General and Administrative Expenses

• General and administrative expenses decreased slightly to \$3,627,426 in 2025. Notable reductions included recruiting, insurance, legal and accounting, travel, and miscellaneous expenses. These were offset by increases in rental and leases (relocation to California headquarters), depreciation/amortization (new assets), and payroll/benefits (full-year impact of 2024 hires).

Impairment, Share-Based Compensation, and Other Income

• Impairment loss of \$731,307 was recorded in 2025, driven by intangible assets and goodwill associated with Edward, reflecting market uncertainty.
• Share-based compensation expenses increased 39.8% to \$387,618, reflecting expanded personnel and incentives.
• Interest income grew significantly to \$924,224, and other income, net, increased six-fold to \$54,763, mainly from higher rental income.
• Interest expense decreased slightly to \$33,198, reflecting lower loan interest costs.

Discontinued Operations

• The parallel-import vehicle segment was discontinued in March 2025. In 2024, this segment generated \$1.6 million in revenue and resulted in a net loss of \$1,956,658.

Liquidity and Going Concern

• Net cash used in operating activities was \$2,075 in 2025. Cash used in continuing operations totaled \$2.5 million, offset by \$2.5 million provided by discontinued operations.
• Investing activities used \$1.3 million, and financing activities used \$73,854 in 2025.
• Cash and cash equivalents dropped to \$233,217, with current assets totaling \$9.1 million and current liabilities \$1.3 million.
• The Company’s management believes current assets and loan receivables are adequate to meet obligations for at least 12 months, but ongoing losses may require additional financing.
• Potential actions to improve liquidity include generating cash from operations, pursuing debt financing, and seeking financial support from principal stockholders or outside equity investors.

Management Commentary & Strategic Outlook

Tony Liu, Chairman and CEO, commented: “Since we restructured our business into logistics and warehousing at the end of 2024, our operations have been shaped by a challenging environment of ongoing tariff tensions and uncertainty in global trade. Despite these challenges, we remained focused on strengthening our operational fundamentals, expanding our labor and logistics service operations, improving cost discipline, and optimizing the use of proceeds from prior public offerings to generate stable interest income.”

“As we move forward, we will remain focused on improving operational efficiency and maintaining financial discipline. At the same time, we will continue to evaluate strategic opportunities that may complement our existing logistics and warehousing capabilities, including potential partnerships, investments, or acquisitions that could support the Company’s long-term growth strategy.”

Shareholder Considerations & Price Sensitive Information

• Restructuring and Discontinuation: The discontinuation of the parallel-import vehicle business marks a pivotal shift to focus entirely on logistics and warehousing. This move could impact future revenue streams and risk profile, making it a key point for investors.
• Impairment Losses: The \$731,307 impairment loss on intangible assets and goodwill reflects underlying market risks and could affect valuation and investor sentiment.
• Liquidity Risks: Continued operating losses and negative cash flow highlight potential risks regarding liquidity and going concern, which may necessitate additional capital raising or debt financing.
• Interest Income: Strong growth in interest income, driven by the use of proceeds from public offerings, provides a cushion but is not a sustainable core business revenue stream.
• Strategic Actions: Potential partnerships, acquisitions, or investments could significantly alter the Company’s growth trajectory and impact share value.
• Stockholder Equity: Total stockholders’ equity decreased to \$9.36 million in 2025 from \$12.62 million in 2024, primarily due to accumulated losses.

Conclusion

Cheetah Net Supply Chain Service Inc. has undergone significant structural and operational changes in 2025, with a complete pivot to logistics and warehousing and the discontinuation of the vehicle import business. While revenue growth was robust, ongoing losses, impairment of acquired assets, and liquidity challenges pose risks that shareholders should closely monitor. The Company’s strategic outlook includes improving operational efficiency and exploring growth through partnerships or acquisitions.

These developments, especially the discontinuation of a major business segment, impairment losses, and liquidity risks, are material and could affect the share value. Investors should consider these risks and the potential for further capital raising or strategic transactions when evaluating Cheetah’s shares.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making any investment decisions. The information contained herein is based on the Company’s published financial statements and management commentary as of March 20, 2026, and may be subject to change.

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