Cheetah Net (CTNT) investor relations material

Executive summary

• Transitioned from parallel-import vehicle sales to logistics and warehousing after a sharp decline in vehicle sales and profitability, formally discontinuing the vehicle segment in March 2025.

• Revenue for Q1 2026 was $92,700, down 80.7% year-over-year due to reduced demand and customer activity in logistics and warehousing.

• Net loss from continuing operations narrowed to $616,265 for Q1 2026, an 18.3% improvement from Q1 2025.

• Completed a 1-for-200 reverse stock split effective April 20, 2026, and raised $40.14 million in a private placement in February 2026.

• Agreed to acquire a Hong Kong-based industrial equipment trading company and disposed of Edward Transit Express Group, Inc. in April 2026.

Financial highlights

• Gross profit for Q1 2026 was $19,867, with a gross margin of 21.4%, compared to $56,256 and 11.7% in Q1 2025.

• General and administrative expenses fell 23% to $770,004, driven by lower legal, payroll, rental, and insurance costs.

• Interest income decreased to $151,142 from $208,090 year-over-year, due to lower average outstanding loan balances.

• Net cash used in operating activities was approximately $2.5 million for Q1 2026.

• Cash and cash equivalents at March 31, 2026, were $713,948.

Outlook and guidance

• Management expects continued operating losses and negative cash flow during the transition to logistics and warehousing, but current liquidity is considered sufficient for at least the next 12 months.

• The business shift may take longer than expected to generate ideal profits, depending on market and operational factors.

• The acquisition of the Hong Kong company is expected to expand international opportunities and support long-term growth.