Cheetah Net Supply Chain Service Inc. Reports Q2 2023 Net Income of $155,745 Despite Decrease in Revenue
Q2 2023 Revenue Falls to $12.2 Million as the Company Focuses on Profitability
Cheetah Net Supply Chain Service Inc. (CTNT), a leading player in the logistics and supp ly chain industry, has released its unaudited condensed consolidated financial statements for the second quarter ended June 30, 2023. Despite a decline in revenue, the company managed to achieve a net income of $155,745 during the quarter.
Revenue Decline
In the second quarter of 2023, Cheetah Net reported revenue of $12,223,026, a significant decrease compared to $20,788,964 in the same period in 2022. This decline in revenue can be attributed to various factors, including the ongoing challenges in the global supply chain, increased competition, and the company's strategic decision to focus on profitability over rapid expansion.
Gross Profit and Operating Expenses
The company's gross profit for the quarter stood at $1,252,369, compared to $1,308,163 in the second quarter of 2022. Despite the decrease in revenue, Cheetah Net maintained a healthy gross profit margin. However, the operating expenses increased to $706,740, up from $384,022 in the same period last year. This increase in operating expenses can be attributed to investments in sales and administrative functions to support future growth.
Income from Operations
Cheetah Net reported income from operations of $545,629 for the second quarter of 2023, compared to $924,141 in the same period in 2022. The decrease in income from operations is primarily due to higher operating expenses.
Other Income and Income Tax Provision
The company's other income and expenses, including interest expenses and other income, resulted in a net expense of $332,887 for the quarter, compared to a net expense of $817,787 in the second quarter of 2022. The income tax provision for the quarter was $56,997, compared to $24,549 in the same period last year.
Net Income
Despite the challenges and decreased revenue, Cheetah Net managed to achieve a net income of $155,745 for the second quarter of 2023, compared to $81,805 in the second quarter of 2022. This demonstrates the company's resilience and its ability to adapt to a changing market environment.
Balance Sheet and Cash Flow
As of June 30, 2023, Cheetah Net's total assets amounted to $11,144,196, with current assets of $10,833,602. The company's total liabilities stood at $8,551,029, and stockholders' equity was $2,593,167.
In terms of cash flow, the company reported net cash provided by operating activities of $4,145,363 for the six months ended June 30, 2023. This positive cash flow reflects Cheetah Net's focus on optimizing its operations for profitability. Additionally, the company reported a net increase in cash of $533,745 for the same period, ending with a cash balance of $592,126.
Cheetah Net continues to navigate a challenging operating environment while prioritizing profitability and strategic growth initiatives. The company's ability to generate positive net income in the face of decreased revenue highlights its commitment to long-term sustainability and success in the supply chain industry.
