CHEETAH NET SUPPLY CHAIN SERVICE INC. Material Event: Understanding the 1-for-200 Reverse Stock Split

If you follow Cheetah Net Supply Chain Service Inc. (ticker: CTNT), you may have seen news about a "reverse stock split." It sounds complicated, but here is what it means for you in plain English.

1. What happened?

On April 20, 2026, Cheetah Net completed a 1-for-200 reverse stock split.

Think of it this way: if you owned 200 shares before this date, you now own 1 share. The total value of your investment stays the same, but you hold fewer shares at a much higher price per share. This applies to both Class A and Class B common stock.

2. Why did it happen?

Companies often do this to boost their share price. If a stock price is very low, it may look unattractive or risk being removed from major exchanges like Nasdaq for failing to meet minimum price rules. By combining 200 shares into one, the company mathematically raises the share price. This helps them meet exchange listing requirements and may make the stock appear more stable to institutional investors.

3. Why does this matter?

This is a cosmetic change, not a fundamental one. It does not change the company’s business, which focuses on supply chain management for imported cars and other goods. It also does not change their profit or debt. If you see a sudden jump in the share price on your screen, don't be shocked—it is just the math of the split, not a sudden increase in the company’s actual value.

4. Who is affected?

• Investors: Your account will show fewer shares, but each one is worth more. Your total investment value remains the same immediately after the split.
• Fractional Shares: The company will not issue fractional shares. If the math leaves you with a fraction, the company will round you up to the nearest whole share.
• Voting Rights: The company uses a dual-class structure. Class A shares carry 1 vote each, while Class B shares carry 15 votes each. Because the 1-for-200 ratio applies to both classes equally, your proportional voting power remains unchanged.

5. What should investors know before making a move?

• Don’t panic: If the price "skyrockets," remember it is just the reverse split.
• Check your brokerage: Most platforms handle this automatically, but check your account to ensure your share count reflects the 1-for-200 adjustment.
• Focus on the business: A reverse split is a technical move. It does not fix a struggling business or improve cash flow. Before deciding to buy or sell, look past the stock price and check the company’s latest SEC filings to see if their operations are actually generating the profit needed to support long-term growth.

Disclaimer: I am an AI, not a financial advisor. This summary is for informational purposes only and is not professional investment advice. Always do your own research before trading.