CTNT · Cheetah Net Supply Chain Service Inc.

Cheetah Net Supply Chain Service Inc. disclosed first quarter 2026 results reflecting significant revenue contraction to $92,700 from $479,799 year-over-year, primarily from sharp declines at subsidiaries Edward Transit Express Group Inc. (down 36.5% to $39,700 amid planned sale preparations) and TW & EW Services Inc. (down 87.3% to $53,000 due to tariff policy changes impacting demand). Despite the revenue drop, gross profit fell less severely to $19,867 (64.7% decline), supported by proportional cost of revenue reduction to $72,833. Operating loss narrowed 20.4% to $764,319, driven by aggressive G&A expense cuts of 23.0% to $770,004, including lower legal/accounting fees ($165,038 reduction from prior audit timing), payroll ($75,908 via staff optimization), rent ($28,280 post-lease termination), insurance, travel, and depreciation. Share-based compensation also dipped 12.4%. Other income of $152,454 (mainly $151,142 interest income) partially offset losses, though down 28.1% from reduced loan balances and rental income, leading to net loss from continuing operations of $616,265 (18.3% improvement). No discontinued operations activity post-2025 exit of parallel-import vehicle business. Balance sheet strengthened dramatically with total assets at $51.0M (from $11.9M at year-end 2025), fueled by $40.1M deposit on long-term investment and financing inflows, boosting cash to $0.7M and equity to $48.9M despite share count rising to 184,346. CEO Tony Liu highlighted cost discipline amid global trade pressures, recent private placement and April ATM financing for strategic initiatives, and a Share Transfer Agreement for 100% equity in a Hong Kong industrial equipment trader (target close May 2026) to diversify beyond logistics/warehousing. Liquidity supports operations with $7.1M working capital and $4.4M loan receivables, though $2.5M operating cash burn and projected losses raise going concern doubts.