Cheetah Net Supply Chain Service Inc. imports luxury cars, including Mercedes and BMW, to China. (Incorporated in the Cayman Islands)
We are a supplier of parallel-import vehicles sourced in the U.S. to be sold in the PRC market. In the PRC, parallel-import vehicles refer to those purchased by dealers directly from overseas markets and imported for sale through channels other than brand manufacturers’ official distribution systems.
We purchase automobiles, primarily luxury brands such as Mercedes, BMW, Porsche, Lexus, and Bentley, from the U.S. market and resell them to our customers, including both U.S. and PRC parallel-import car dealers. We derive profits primarily from the price difference between our buying and selling prices for parallel-import vehicles.
The primary driver for our industry is the continued growth of wealthy groups in China. The core of our business is the ability to identify the type of parallel-import vehicles that are in high demand and to procure them in a timely manner. Since our inception in 2016, our management has focused on building our procurement team. We procure our automobiles from U.S. automobile dealers via a network of independent contractors acting as purchasing agents on our behalf. As of Dec. 31, 2022, and 2021, we actively worked with 342 and 300 purchasing agents, respectively.
As of Dec. 2022, and 2021, we had an active customer base of 17 and eight dealers, respectively. Specifically, we had eight U.S. customers and nine PRC customers in 2022 and had four customers in each of the U.S. and the PRC in 2021. During the years ended Dec. 31, 2022, and 2021, we sold 434 and 167 parallel-import vehicles to Chinese parallel-import car dealers, respectively. During the same period, we sold 29 and 220 parallel-import vehicles to our U.S. domestic customers, respectively.
We sold 463 and 387 vehicles during the years ended Dec. 31, 2022, and 2021, respectively.
**Note: Net income and revenue are for the 12 months that ended Dec. 31, 2022.
(Note: Cheetah Net Supply Chain Service Inc. filed its S-1 on April 7, 2023.)