CHEETAH NET SUPPLY CHAIN SERVICE INC.

CHEETAH NET SUPPLY CHAIN SERVICE INC. provides logistics and warehousing services. Historically, the company focused on the sale of parallel-import vehicles sourced in the U.S. and sold in the People's Republic of China (PRC) market. Parallel-import vehicles in the PRC are automobiles purchased directly from overseas markets and imported for sale outside of the brand manufacturers' official distribution networks. Between 2016 and the first half of 2022, the parallel-import vehicle business saw growth in sales volume and gross profit. However, starting in the second half of 2023, this business segment faced challenges, including declining customer demand, price competition from luxury automakers in the PRC, and a shift in consumer preference toward domestic electric vehicles. These factors led to a 30.5% decline in parallel-import vehicle sales in 2023 and a 95.7% decline in 2024, with vehicle sales dropping from 303 units in 2023 to 14 units in 2024. The company also recorded a credit loss of $1.6 million for the year ended December 31, 2024, due to difficulties in collecting receivables. On March 3, 2025, the board of directors approved the discontinuation of the parallel-import vehicle business. Since February 2024, CHEETAH NET SUPPLY CHAIN SERVICE INC. has shifted its business focus to logistics and warehousing operations. This began with the acquisition of Edward Transit Express Group Inc. ("Edward"), a California-based common carrier specializing in ocean transportation services. In the second quarter of 2024, the company expanded its marketing staff to pursue new business opportunities, particularly focusing on international trade flows between the PRC and the U.S. In July 2024, the company relocated its headquarters from Charlotte, North Carolina, to Irvine, California, to enhance management focus on its logistics and warehousing business due to Irvine's proximity to the ports of Los Angeles and Long Beach. In December 2024, the company acquired TW & EW Services Inc ("TWEW"), a California-based provider of general labor and logistics services.