Sign in

You're signed outSign in or to get full access.

CN

CHEETAH NET SUPPLY CHAIN SERVICE INC. (CTNT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 continuing-operations revenue was approximately $0.224M, up sequentially from Q3’s $0.061M as Edward and newly acquired TWEW contributed; FY 2024 continuing-operations revenue was $0.456M . Q4 revenue exceeded Wall Street consensus ($0.100M) by ~124% (beat). Values retrieved from S&P Global.*
  • The company completed its strategic pivot to logistics and warehousing: Edward contributed $0.317M and TWEW $0.139M of FY 2024 revenue; parallel-import vehicles are discontinued (Board approval March 5, 2025) after 95.7% YoY sales decline in 2024 .
  • Profitability remained challenged: FY 2024 net loss was $5.19M, driven by higher G&A to stand up logistics and a $1.6M credit loss tied to the legacy vehicle business; Q3 2024 loss per share was $(1.06) amid allowance build and share-based comp .
  • Liquidity intact for the transition: FY-end current assets $11.04M (cash $1.65M, loan receivable $6.09M) and current liabilities $0.88M; nine-month working capital was $11.6M prior to year-end rebalancing .
  • Near-term stock reaction catalysts: formal exit of the vehicle segment, integration of TWEW, sequential revenue lift in Q4, and internal control remediation from identified material weaknesses; reverse split executed in Oct-2024 provides listing runway .

What Went Well and What Went Wrong

What Went Well

  • Logistics pivot gained traction with entity contributions: Edward revenue $316,852 and TWEW $138,953 in FY 2024, combining to $455,805 continuing-ops revenue .
  • Sequential revenue inflection in Q4 as TWEW closed in December and Edward scaled operations; nine-month logistics revenue was $231,605, implying Q4 ~ $224,200 .
  • Management decisiveness and strategic clarity: “We moved quickly to expand beyond the parallel-import vehicle business … We expect longer than expected to generate ideal profits and have confidence that we are positioning the Company for substantial future growth” .

What Went Wrong

  • Parallel-import vehicle segment collapse: 2024 sales fell 95.7% to $1.6M vs. $38.3M in 2023; gross loss of $24,820 vs. prior-year $4.2M gross profit .
  • Credit losses and exit costs: allowance and related forfeitures totaled ~$1.8M (credit loss $1.59M, forfeited deposits $0.10M, tax receivable credit loss $0.03M), weighing on results .
  • Operating cost step-up during pivot: FY 2024 G&A rose 66.3% to $3.64M on hiring, leases, D&O insurance, and amortization tied to acquired intangibles .

Financial Results

Quarterly Revenue (Continuing Operations – Logistics & Warehousing)

MetricQ1 2024Q2 2024Q3 2024Q4 2024
Logistics & Warehousing Revenue ($USD)$76,834 $93,563 $61,208 $224,200 (computed: FY continuing $455,805 minus 9M logistics $231,605 )

Note: Q4 2024 revenue computed from reported FY and nine-month logistics figures; sources cited in cell.

Quarterly EPS

MetricQ1 2024Q2 2024Q3 2024Q4 2024
Loss per Share (Basic & Diluted) ($USD)$(0.03) $(0.03) $(1.06) N/A (not disclosed)

Margins

MetricFY 2024Q3 2024
Gross Profit ($USD)$178,512 $29,869
Revenue ($USD)$455,805 $61,208
Gross Margin %39.2% (computed from FY revenue and gross profit )48.8%

Segment/Entity Breakdown (FY 2024 – Continuing Operations)

SegmentFY 2024 Revenue ($USD)
Edward (Freight forwarding, storage, customs)$316,852
TWEW (Labor services, loading/unloading)$138,953
Total Continuing Operations$455,805

KPIs and Balance-Sheet Highlights

KPI / MetricValue
Active logistics customers (year-end)24
Cash and Cash Equivalents (12/31/2024)$1,650,962
Loan Receivable (12/31/2024)$6,088,295
Current Assets / Current Liabilities (12/31/2024)$11,037,072 / $883,261
Working Capital (9/30/2024)~$11.6M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
————No formal quantitative guidance was provided in Q4 2024 materials –.

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available. Trends compiled from Q2/Q3 releases and Q4 press release.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 2024)Trend
Business transformation to logistics/warehousingInitiated post-Edward acquisition; HQ move to Irvine to leverage LA/LB ports Reinforced; formal exit of vehicle segment approved; focus on integrated logistics growth Accelerating pivot
PRC macro/EV shift and luxury discountingSignificant margin compression; deliberate pause in vehicle procurement Finalized discontinuation; 95.7% YoY sales decline on vehicles Legacy headwind resolved via exit
AcquisitionsEdward closed Feb-2024; announced plan to expand services TWEW definitive agreements Dec-2; closed Dec-19; entity contributions detailed Network expansion
Liquidity & capitalFollow-on offerings in May/July bolstered cash; positive operating cash in 2024 Year-end current assets $11.0M; equity increased to $12.6M Stable runway
Corporate actions / listingReverse stock split approved (1-for-16); post-split trading commenced Oct-24 Post-split structure reflected in FY shares; material weaknesses identified for remediation Governance remediation focus

Management Commentary

  • “It was a very tough year for Cheetah in 2024… luxury vehicle manufacturers discounted the prices… we had to wind-down this segment… We will continue to focus on improving operational efficiencies… We expect longer than expected to generate ideal profits and have confidence that we are positioning the Company for substantial future growth” — Tony Liu, Chairman & CEO .
  • “Since the second quarter… undergoing a business transformation… relocation to Irvine, CA will enable a stronger management focus… We believe tangible results may not be apparent for several quarters” .
  • “The parallel-vehicle import market… affected by significant price discounting… and a shift in consumer interest to domestic EVs… we are accelerating our efforts to grow our logistics and warehouse operations” .

Q&A Highlights

  • No Q4 2024 earnings call transcript was available; no Q&A content to report [ListDocuments returned none].

Estimates Context

How results compared to Wall Street consensus:

  • Q4 2024 revenue beat: Actual continuing-ops ~$0.224M vs. consensus $0.100M. Strong sequential improvement. Values retrieved from S&P Global.*
  • FY 2024 revenue miss: Actual continuing-ops $0.456M vs. consensus $1.900M. Reflects deeper trough during transition year. Values retrieved from S&P Global.*

Consensus detail (S&P Global):

MetricQ1 2024Q2 2024Q3 2024Q4 2024FY 2024FY 2025
Revenue Consensus Mean ($USD)5,000,000*2,700,000*900,000*100,000*1,900,000*1,500,000*
Revenue Actual ($USD)76,834*93,563*61,208*—455,805*—
Primary EPS Consensus Mean ($USD)(0.16)*(0.16)*(0.32)*(0.55)*(2.60)*(0.83)*
EBITDA Consensus Mean ($USD)0*(100,000)*(800,000)*(1,400,000)*(5,500,000)*(3,100,000)*
Primary EPS - # of Estimates1*1*1*1*1*1*
Revenue - # of Estimates1*1*1*1*1*1*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • The pivot is working: Q4 delivered a clear sequential revenue step-up in continuing operations as Edward and TWEW contributions ramped; expect continued operational scaling in 2025 .
  • Vehicle exit removes structural drag: formal discontinuation curtails credit losses and margin compression from legacy operations; focus now squarely on NVOCC/warehouse/labor services .
  • Liquidity supports execution: $11.0M current assets and $12.6M equity at FY-end provide funding runway to expand customer base and integrate acquisitions .
  • Governance and controls: material weaknesses identified; remediation will be a monitoring point for investors given the company’s rapid operational changes .
  • Near-term prints likely choppy but improving: sequential lift and entity mix suggest further normalization; quarterly EPS visibility limited until recurring scale offsets fixed costs .
  • Catalysts: additional logistics customers, MQC utilization, cost discipline in G&A, and evidence of margin expansion (gross and EBITDA) as operations mature .
  • Risk checks: U.S.-PRC macro/trade/tariff backdrop, execution on MQC without dead freight, and maintaining OTI license compliance remain key .

Citations:

  • Q3 2024 press release and financials
  • Q2 2024 press release and financials
  • Q1 2024 press release and financials
  • Q4 2024 / FY 2024 press release and FY financials
  • TWEW acquisition agreements and announcement
  • 10-K FY 2024 disclosures (customers, risks, liquidity, controls)

S&P Global disclaimer: All consensus estimate values marked with an asterisk (*) are sourced from S&P Global.