United States
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form
Current Report
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| Item 8.01 | Other Events. |
In its Annual Report on Form 10-K filed on March 18, 2024, Cheetah Net Supply Service Chain Inc. (the “Company”) disclosed that since the second half of 2023, the market for new luxury vehicles in the PRC had been negatively impacted by weak economic conditions and a shift in consumer demand towards electric vehicles, mainly those produced domestically by PRC manufacturers. Luxury import brand manufacturers responded to these threats by discounting the sale price of their vehicles, which has significantly challenged, and continues to challenge, the Company’s ability to sell parallel import vehicles profitably. The Company generated a net loss during the fourth quarter of 2023 and experienced a 38.0% decline in unit sales compared with its third quarter.
This market dynamic has continued into 2024. During the first quarter of 2024, the Company sold a total of 13 vehicles, compared with 49 vehicles in the fourth quarter of 2023 and 82 vehicles in the first quarter of 2023. First quarter 2024 vehicle sales revenue amounted to $1.4 million, compared with $10.2 million in the first quarter of 2023.
These adverse market conditions are continuing in the second quarter of 2024 and the Company does not anticipate a significant sales rebound during the second quarter. The Company is unable to predict the point at which a positive spread between the price of vehicles sourced from brand manufacturers’ official distribution systems compared with those sourced via the parallel-import market will return. In the interim, the Company is focusing its efforts on generating non-vehicle, third-party warehousing and logistics business through the recently acquired Edward Transit Express Group.
The Company plans to file its Quarterly Report on Form 10-Q for the three months ended March 31, 2024 on or before May 15, 2024.
| Item 9.01 | Exhibits. |
(d) Exhibits
| Exhibit No. |
Description | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 29, 2024
| Cheetah Net Supply Chain Service Inc. | ||
| By: | /s/ Huan Liu | |
| Huan Liu | ||
| Chief Executive Officer, Director, and Chairman of the Board of Directors | ||