Cheetah Net Supply Chain Service Inc. (NASDAQ: CTNT)

Cheetah Net Supply Chain Service Inc., also known as CTNT, operates in the parallel-import vehicle business, sourcing vehicles from the United States and reselling them to customers in the People's Republic of China (PRC) market. The company was established in 2016 and has its headquarters in North Carolina, USA.

CTNT's primary business activities involve the procurement of parallel-import vehicles from overseas markets and their importation into the PRC market for sale through channels other than brand manufacturers' official distribution systems. The company specializes in luxury vehicles, including brands such as Mercedes, BMW, Land Rover, Lexus, and Bentley. CTNT's competitive edge lies in its ability to identify high-demand parallel-import vehicles and procure them efficiently, thanks to its large team of professional purchasing agents. The company's operations are scalable and systematic, allowing it to supply stable and large quantities of cars at reasonable prices to Chinese parallel-import car dealers.

The company's revenue generation primarily comes from the sales of parallel-import vehicles. CTNT's customers are primarily Chinese parallel-import car dealers, who purchase vehicles from the company and then sell them to end consumers in the PRC market. The company also sells vehicles to U.S. customers, although this segment is smaller than the PRC market. The company's financial results have been impacted by the COVID-19 pandemic and weak economic conditions in the PRC, leading to a reduction in unit sales and a shift in strategy towards selling only the most profitable parallel-import vehicles. Despite these challenges, CTNT remains committed to its growth strategy, which includes expanding its warehousing and logistics services, launching financial services to small- and medium-sized traders in the global supply chain industry, and pursuing strategic and financially attractive acquisitions.

CTNT's subsidiaries include Allen-Boy International LLC, Canaan International LLC, Canaan Limousine LLC, Pacific Consulting LLC, Entour Solutions LLC, Cheetah Net Logistics LLC, and Edward, a corporation incorporated in California, USA. The company's procurement process involves a team of professional purchasing agents who negotiate prices with dealers and purchase vehicles on behalf of the company. CTNT's sales strategy is to focus on vehicles with MSRPs between $80,000 and $130,000, and it has a standardized system of recruiting, training, and managing professional purchasing agents.

CTNT has developed its Office Automation System (OA System), an information technology system used to track order status and monitor business workflow, which facilitates the storage, exchange, and management of order data, thereby increasing productivity and efficiency. As of December 31, 2023, CTNT had a total of 20 employees, 18 of whom worked as full-time employees, with 389 independent contractors who served as professional purchasing agents. The company competes in a highly competitive market, with many new companies constantly entering the market. However, CTNT believes that it is well-positioned to effectively compete in the parallel-import vehicles dealership industry, with its strong overseas procurement capability and in-depth industry insight.