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Senmiao Technology Reports Fiscal 2024 Third Quarter Financial Results

  • Monday, February 12, 2024, 10:00 pm
  • ACROFAN=PRNasia
  • hkcs@prnasia.com

CHENGDU, China, Feb. 12, 2024 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (Nasdaq: AIHS), a financing and servicing company focused on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced financial results for its fiscal 2024 third quarter ended December 31, 2023.


Fiscal 2024 Third Quarter Financial and Operating Highlights


  • Total revenues of $1.6 million compared to $1.7 million in the prior-year period, primarily due to decreased revenues from online ride-hailing platform services, which was partially offset by increased revenues from the automobile rental business.
  • Loss from operations narrowed to $1.1 million, from $1.3 million in the prior-year period.
  • Net loss was $0.9 million, compared to $1.0 million in the prior-year period.
  • From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to December 31, 2023, more than 35.4 million rides were completed (including orders completed on the platform operated by Senmiao and on partner platforms), with fares paid by riders totaling $114.0 million. As of February 9, 2024, Senmiao has operations in 26 cities in China, including Chengdu, Changsha and Guangzhou.

Management Commentary


Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We were pleased to see continued strength in our automobile rental business, which enabled us to achieve a significant gross margin increase and improved bottom-line results for the fiscal 2024 third quarter. While the online ride-hailing platform services business recorded decreased revenues due to increased competition and compliance checks in a couple of our key markets, we are optimistic about our ability to grow the number of completed orders and improving overall operating efficiency through our recently announced partnership with Anhui Lianma Technology Co., Ltd., a company with extensive experience in online ride-hailing platform operation in multiple cities in China. We more than doubled gross profit during the period as a result of increased revenue contributions from the automobile leasing business, and our ongoing cost-cutting initiatives have resulted in a 24.0% decrease in SG&A expenses, all of which led to a significantly improved bottom line. As we look to continue improving our operating and financial performance, we also continue to seek and assess business opportunities that will serve as catalysts for Senmiao's business growth."


Financial Review


Revenues


Total revenues were $1.6 million for the fiscal third quarter ended December 31, 2023, compared to $1.7 million in the prior-year period. During the quarter ended December 31, 2023, the automobile rental business generated operating lease revenues of $1.0 million, a 27.0% increase from $0.8 million in the prior-year period, primarily due to increased average utilization of automobiles under operating lease growing from 42.9% to 80.6%. The online ride-hailing platform services business generated revenues of $0.5 million, compared to $0.8 million in the prior-year period. The decrease was mainly due to fewer completed orders as a result of increased competition and compliance checks conducted by our platform partner Gaode in Chengdu, one of Senmiao's major markets, during the period.


Cost of Revenues


Cost of revenues decreased 22.9% to $1.2 million for the fiscal third quarter ended December 31, 2023, from approximately $1.6 million in the prior-year period, primarily due to a $0.2 million decrease in maintenance and insurance expense related to the automobile rental business as Senmiao used more NEVs during the period, and a $0.1 million decrease in direct expense and technical service fees for the online ride-hailing platform services business as a result of fewer completed orders.


Gross Profit


Gross profit was $0.4 million for the fiscal third quarter ended December 31, 2023, an increase of 128.5% from $0.2 million in the prior-year period, primarily due to increased gross profit from Senmiao's automobile rental business, partially offset by decreased gross profit from online ride-hailing platform services and other services.


Selling, General and Administrative Expenses


Selling, general and administrative expenses decreased 24.0% to $1.1 million for the fiscal third quarter ended December 31, 2023, from $1.4 million in the prior-year period, which was mainly attributable to the Company's ongoing cost control efforts and initiatives to streamline its operations, which resulted in a $0.2 million decrease in salary and employee benefit expenses and a $0.2 million decrease in office rental and insurance charges.


Loss from Operations


Loss from operations for the fiscal third quarter ended December 31, 2023, narrowed to $1.1 million, from loss from operations of $1.3 million in the prior-year period. This was primarily due to decreased cost of revenues.


Net Loss


Net loss for the fiscal third quarter ended December 31, 2023, was $0.9 million, compared to $1.0 million in the prior-year period.


Loss per Share


Loss per diluted share for the fiscal third quarter ended December 31, 2023, was approximately $0.10 based on a weighted average number of basic and diluted common stock of 9.4 million, compared to loss per diluted share of approximately $0.13 based on a weighted average number of basic and diluted common stock of 7.7 million in the prior-year period.


Financial Position


As of December 31, 2023, Senmiao had cash and cash equivalents of $1.1 million, compared to $1.6 million as of March 31, 2023. Total stockholders' equity was $2.2 million as of December 31, 2023, compared to $4.4 million as of March 31, 2023.


Additional information regarding Senmiao's results of operations for this quarterly period can be found in Senmiao's Quarterly Report on Form 10-Q for the quarter ended December 31, 2023, to be filed with the Securities and Exchange Commission on the date of this earnings release.


About Senmiao Technology Limited


Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchases and financing, management, operating leases, guarantees and other automobile transaction services, as well as operates its own ride-hailing platform aimed principally at the growing online ride-hailing market in Senmiao's areas of operation in China. For more information about Senmiao, please visit: https://www.senmiaotech.com. Senmiao routinely provides important updates on its website.


Cautionary Note Regarding Forward-Looking Statements 


This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements (including those relating to the operation of Senmiao's ride-hailing platform) are subject to significant risks, uncertainties and assumptions, including those detailed from time to time in the Senmiao's filings with the SEC, and represent Senmiao's views only as of the date they are made and should not be relied upon as representing Senmiao's views as of any subsequent date. Senmiao undertakes no obligation to publicly revise any forward-looking statements to reflect changes in events or circumstances. 


For more information, please contact:


At the Company:


Yiye Zhou
Email: edom333@ihongsen.com
Phone: +86 28 6155 4399


Investor Relations:


The Equity Group Inc.                                                                      In China
Carolyne Sohn, Vice President                                                        Lucy Ma, Associate
+1 408-538-4577                                                                             +86 10 5661 7012
csohn@equityny.com                                                                       lma@equityny.com 


Alice Zhang, Associate
+1 212-836-9610
azhang@equityny.com


© 2024 Senmiao Technology Ltd. All rights reserved.


 


 SENMIAO TECHNOLOGY LIMITED


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


(Expressed in U.S. dollars, except for the number of shares)






December 31,



March 31,




2023



2023




(Unaudited)




ASSETS






Current assets






Cash and cash equivalents



$


1,064,822



$


1,610,090


Restricted cash




2,375




-


Accounts receivable




50,820




158,435


Accounts receivable, a related party




5,493




6,312


Inventories




-




6,678


Finance lease receivables, current portion




150,394




146,114


Prepayments, other receivables and other assets, net




1,256,431




1,438,243


Due from related parties, net, current portion




2,512,079




1,488,914


Total current assets




5,042,414




4,854,786









Property and equipment, net




2,959,653




3,343,457









Other assets








Operating lease right-of-use assets, net




90,982




121,672


Operating lease right-of-use assets, net, related parties                                                                             




325,101




92,916


Financing lease right-of-use assets, net




421,645




623,714


Intangible assets, net




636,017




774,324


Finance lease receivable, non-current




86,184




71,133


Due from a related party, net, non-current




1,922,441




3,640,206


Other non-current assets




650,713




716,407


Total other assets




4,133,083




6,040,372









Total assets



$


12,135,150



$


14,238,615









LIABILITIES, MEZZANNIE EQUITY AND EQUITY








Current liabilities








Borrowings from a financial institution, current



$


144,871



$


8,813


Accounts payable




165,839




183,645


Advances from customers




139,732




148,188


Accrued expenses and other liabilities




3,846,364




3,377,507


Due to a related party




386




8,667


Operating lease liabilities




33,840




60,878


Operating lease liabilities - related parties




319,323




143,462


Financing lease liabilities




204,069




264,052


Derivative liabilities




91,755




501,782


Current liabilities - discontinued operations




471,868




487,829


Total current liabilities




5,418,047




5,184,823


 


SENMIAO TECHNOLOGY LIMITED


UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)


(Expressed in U.S. dollars, except for the number of shares)





December 31,



March 31,




2023



2023




(Unaudited)




Other liabilities








Borrowings from a financial institution, non-current




108,653




-


Operating lease liabilities, non-current




51,568




83,485


Operating lease liabilities, non-current - related parties




161,375




42,247


Financing lease liabilities, non-current




253,872




388,064


Deferred tax liability




41,525




42,930


Total other liabilities




616,993




556,726









Total liabilities




6,035,040




5,741,549









Commitments and contingencies (Note 19)















Mezzanine Equity








Series A convertible preferred stock (par value $1,000 per share, 5,000 shares authorized; 991 and
1,641 shares issued and outstanding at December 31, 2023 and March 31, 2023, respectively)




234,364




269,386









Stockholders' equity








Common stock (par value $0.0001 per share, 500,000,000 shares authorized; 9,568,040 and 7,743,040
shares issued and outstanding at December 31, 2023 and March 31, 2023, respectively)




956




773


Additional paid-in capital




43,834,973




43,355,834


Accumulated deficit




(40,003,077)




(37,715,294


Accumulated other comprehensive loss




(1,593,976)




(1,247,099


Total Senmiao Technology Limited stockholders' equity




2,238,876




4,394,214









Non-controlling interests




3,626,870




3,833,466









Total equity




5,865,746




8,227,680









Total liabilities, mezzanine equity and equity



$


12,135,150



$


14,238,615


 


SENMIAO TECHNOLOGY LIMITED


UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS


(Expressed in U.S. dollars, except for the number of shares)