Senmiao Technology Reports Financial Results for Fourth Fiscal Quarter and Fiscal Year 2019

Results demonstrate positive transition of Senmiao's primary business model from peer-to-peer lending to automobile transactions in China

Published

CHENGDU, China, July 3, 2019 /PRNewswire/ -- Senmiao Technology Limited  (NASDAQ: AIHS) ("Senmiao"), a provider of automobile transaction and related services and an operator of an online lending marketplace connecting Chinese investors with individual and small-to-medium-sized enterprise borrowers in China, today announced its financial results for the fiscal fourth quarter and fiscal year ended March 31, 2019.

Fourth Quarter of Fiscal Year 2019 Highlights

  • Total revenues increased by 1,477.6% year-over-year to $2,514,672 from $159,399
  • Revenues from automobile transaction and related services accounted for 96.7% while revenue from online lending services accounted for 3.3% of total revenues, reflecting a positive transition of Senmiao's primary business model away from the highly regulated peer-to-peer lending sector in China
  • Gross profit increased by 340.7% year-over-year to $702,485 from $159,399
  • Net loss decreased by 76.5% year-over-year to $2,053,864 from $8,747,832
  • Loss per share decreased by $0.32 year-over -year to $0.08 from $0.40
  • Sold 212 automobiles, facilitated and serviced 259 new automobile purchase transactions and provided management and guarantee services to over 1,000 automobiles

Full Year of Fiscal Year 2019 Highlights

  • Total revenues increased by 490.2% year-over-year to $2,921,063 from $494,897
  • Revenues from automobile transaction and related services accounted for 87.3% while revenue from online lending services accounted for 12.7% of total revenues
  • Gross profit increased by 124.1% year-over-year to $1,108,876 from $494,897
  • Net loss decreased by 53.9% year-over-year to $4,542,525 from $9,858,972

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated "With total revenues increasing by 1,477.6% to more than $2.5 million and gross profit increasing by 340.7% to $0.7 million, both record high since our inception in 2017, our financial results for the fourth quarter of fiscal year 2019 marked the positive commencement and expansion of our new automobile transaction business and serve as a validation of our transformation from an online lending marketplace to a more diversified financial service company in China.  Our automobile transaction and related services business (which we entered as a result of our acquisition of Hunan Ruixi Financial Leasing Co., Ltd. (or Hunan Ruixi) in November 2018) contributed 96.7% and 88.3% of total revenues and gross profit, respectively, in the fourth quarter, making it our primary business segment, and we expect this trend to continue as we diversify away from our peer-to-peer lending business, which became subject to significant regulation and governmental scrutiny in China over the last year".

"The acquisition of Hunan Ruixi has allowed us to capitalize on the growing ride-sharing market in second and third-tier cities in China, like Chengdu. Looking ahead, we expect the automobile transaction and related services business to continue to drive significant growth in both revenues and gross profit during 2019 and beyond", concluded Mr. Wen.

Financial Results for Fourth Quarter of Fiscal Year 2019

Revenues

For the quarter ended March 31, 2019, total revenues increased by $2,355,273, or 1,477.6%, to $2,514,672 from $159,399 for the same period of fiscal year 2018. The increase in total revenues was attributable to the growth of our automobile transaction following the Hunan Ruixi acquisition in November 2018.

Revenues from automobile transaction and related services were $2,432,371 for the quarter ended March 31, 2019, compared to $0 for the same period of fiscal year 2018. Revenues were derived primarily from sales of an aggregate of 212 automobiles, through facilitating and servicing 259 new automobile purchases, providing management and guarantee services for over 1,000 automobiles, as well as commissions from insurance companies and services fees from Didi Chuxing Technology Co., Ltd., a major transportation network company in China that operates the largest ride-hailing platform in China ("Didi").

Revenues from online lending services decreased by $77,098, or 48.4%, to $82,301 for the quarter ended March 31, 2019 from $159,399 for the same period of fiscal year 2018 due to the decrease in loan amount facilitated.

Cost of revenues

Cost of revenues represents the costs related to our automobile transaction and related services business and was $1,812,187 for the quarter ended March 31, 2019, compared to $0 for the same period of fiscal year 2018 since we only provided online lending services and did not incur cost of revenues for the same period of fiscal year 2018.

Gross profit

Gross profit increased by $543,086, or 340.7%, to $702,485 for the quarter ended March 31, 2019 from $159,399 for the same period of fiscal year 2018. Gross profit from automobile transaction and related services was $620,184 accounting for 88.3% of total gross profit for the quarter ended March 31, 2019. Gross profit from online lending services decreased by $77,098, or 48.4%, to $82,301 for the quarter ended March 31, 2019 from $159,399 for the same period of fiscal year 2018.

Operating expenses

For the quarter ended March 31, 2019, selling, general and administrative expenses ("SG&A") expenses increased by $786,139, or 141.0%, to $1,343,594 from $557,455 for fiscal year 2018. The increase in SG&A expenses was primarily due to increased salary and employee benefits as well as rental and other marketing and advertising related services expenses that were related to our automobile transactions and related services business.

Amortization of intangible assets was $74,467 for the quarter ended March 31, 2019, compared to $171,348 for the same period of fiscal year 2018, representing a decrease of 56.5%, mainly attributable to the decrease in net book value of our online lending platform as a result of the impairment charges of $2,000,175 for fiscal year 2018.

Impairments of intangible assets and goodwill were $1,225,073 for the quarter ended March 31, 2019, compared to $8,179,381 for the same period of fiscal year 2018. Such impairments relate to our peer-to-peer lending business.

Total operating expenses decreased by $6,265,050, or 70.3%, to $2,643,134 for the quarter ended March 31, 2019 from $8,908,184 for the same period of fiscal year 2018.

Net loss and loss per share

As a result of the foregoing, net loss was $2,053,864 or loss per share of $0.08, for the quarter ended March 31, 2019 as compared to net loss of $8,747,832, or loss per share of $0.40, for the same period of fiscal year 2018.

Financial Results for Fiscal Year 2019

Revenues

For our fiscal year 2019 which ended March 31, 2019, total revenues increased by $2,426,166, or 490.2%, to $2,921,063 from $494,897 for fiscal year 2018. The increase in total revenues was attributable to the growth of our automobile transaction and related services following the acquisition of Hunan Ruixi in November 2018.

Revenues from automobile transaction and related services were $2,551,107 for fiscal year 2019, compared to $0 for fiscal year 2018. Our revenues are primarily from sales of an aggregate of 212 automobiles, through facilitating and servicing 311 new automobile purchases, providing management and guarantee services for 1,060 automobiles, as well as other miscellaneous services fees including commissions from insurance companies and services fees from Didi.

Revenues from online lending services decreased by $124,941, or 25.2%, to $369,956 for fiscal year 2019 from $494,897 for fiscal year 2018. The decrease was due to the decrease in loan amount facilitated and we focused on compliance rather than launching new loan products to attract new customers of our online lending services.

Cost of revenues

Cost of revenues represents the costs related to our automobile transaction and related services and was $1,812,187 for fiscal year 2019, compared to $0 for fiscal year 2018 since we only provided online lending services and did not incur cost of revenues during fiscal year 2018.

Gross profit

Gross profit increased by $613,979, or 124.1%, to $1,108,876 for fiscal year 2019 from $494,897 for fiscal year 2018. Gross profit from online lending services decreased by $124,941, or 25.2%, to $369,956 for the fiscal year 2019 from $494,897 for fiscal year 2018. Gross profit from automobile transaction and related services was $738,920 and accounted for 66.6% of total gross profit for fiscal year 2019. 

Operating expenses

For fiscal year 2019, SG&A expenses increased by $2,506,868, or 165.2%, to $4,024,672 from $1,517,804 for fiscal year 2018. The increase in SG&A expenses was primarily due to increased salary and employee benefits as well as professional fees associated with being a public company since March 2018.

Amortization of intangible assets was $308,043 for fiscal year 2019, compared to $659,558 for fiscal year 2018, representing a decrease of 53.3%, mainly attributable to the decrease in net book value of our online lending platform as a result of the impairment charges of $2,000,175 for fiscal year 2018.

Impairments of intangible assets and goodwill was $1,225,073 for fiscal year 2019, compared to $8,179,381 for fiscal year 2018. Such impairments relate to our peer-to-peer lending business.

Total operating expenses decreased by $4,798,955, or 46.3%, to $5,557,788 for the fiscal year 2019 from $10,356,743 for the fiscal year 2018. 

Net loss and loss per share

As a result of the foregoing, net loss was $4,542,525, or loss per share of $0.18, for fiscal year 2019 as compared to net loss of $9,858,972, or loss per share of $0.45, for fiscal year 2018.

Further information regarding Senmiao's results of operations, business generally and related risk factors will be available in Senmiao's Annual Report on Form 10-K which is being filed with the U.S. Securities and Exchange Commission, which readers are encouraged to review.

About Senmiao

Headquartered in Chengdu, Sichuan Province, Senmiao provides automobile transaction and related services including sales of automobiles, facilitation and services for automobile purchase and financing, management, guarantee and other automobile transaction services. Senmiao also operates an online lending platform, which connects Chinese investors with individual and small-to-medium-sized enterprise borrowers. For more information about Senmiao, please visit: http://www.senmiaotech.com.

Cautionary Note Regarding Forward-Looking Statements

This press release of Senmiao contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the development of Senmiao's automobile transaction and related services, the Chinese ride-sharing and automobile  financial leasing markets, the Chinese online marketplace lending industry and Senmiao's plans, objectives, goals, strategies, and performance, as well as the assumptions such statements and other statements that are not statements of historical facts. When Senmiao uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from Senmiao's expectations, including, but not limited to, risks and uncertainties relating to the following:  the risk that the anticipated growth of Senmiao's automobile transaction and related services may not be realized; Senmiao's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; the impact of government regulations; fluctuations in general economic and business conditions in China and other risks expressed in reports filed by Senmiao with the U.S. Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance on any forward-looking statements. Senmiao's filings with the U.S. Securities and Exchange Commission are available for review at www.sec.gov. 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:Julie ZhuEmail: julie@ihongsen.comPhone: +86-181-9085-0098

Investor Relations:Tony Tian, CFAWeitian Group LLCEmail: ttian@weitianco.com Phone: +1-732-910-9692

 

CONSOLIDATED BALANCE SHEETS
As of March 31, 2019 and 2018
(Expressed in U.S. dollar, except for the number of shares)
March 31, 2019 March 31, 2018
ASSETS
Current Assets
Cash and cash equivalents $ 5,020,510 $ 11,141,566
Accounts receivable 326,181 -
Inventories 1,508,244 -
Finance lease receivables, net, current portion 10,254 -
Prepayments, receivables and other assets, net 3,793,468 70,421
Escrow receivable due within one year 600,000 -
Due from related parties 140,498 -
Total Current Assets 11,399,155 11,211,987
Property and equipment, net 125,885 8,872
Other Assets
Intangible assets, net 296,091 1,953,223
Prepayments for intangible assets 470,706 -
Escrow receivable - 1,200,000
Finance lease receivables, net 22,298 -
Total Assets $ 12,314,135 $ 14,374,082
LIABILITIES AND EQUITY
Current Liabilities
Borrowings from financial institutions $ 219,157 $ -
Borrowings from third parties 476,765 -
Advances from customers 38,996 -
Income tax payable 21,905 -
Accrued expenses and other liabilities 1,500,803 404,604
Due to stockholders 1,080,047 1,090,808
Due to related parties and affiliates 415,931 -
Total Current Liabilities 3,753,604 1,495,412
Borrowings from financial institutions, noncurrent 177,789 -
Total Liabilities 3,931,393 1,495,412
Commitments and Contingencies
Stockholders' Equity
Common stock (par value $0.0001 per share, 100,000,000 shares      authorized; 25,945,255 and 25,879,400 shares issued and      outstanding at March 31, 2019 and 2018, respectively) 2,595 2,588
Additional paid-in capital 23,833,112 23,611,512
Accumulated deficit (15,031,538) (10,481,669)
Accumulated other comprehensive loss (428,771) (253,761)
Total Stockholders' Equity 8,375,398 12,878,670
Noncontrolling interests 7,344 -
Total Equity 8,382,742 12,878,670
Total Liabilities and Equity $ 12,314,135 $ 14,374,082

 

 

CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
As of March 31, 2019 and 2018 For the Years Ended March 31, 2019 and 2018
(Expressed in U.S. dollar, except for the number of shares) (Expressed in U.S. dollar, except for the number of shares)
March 31, 2019 March 31, 2018 For the Years Ended March 31,
ASSETS 2019 2018
Current Assets
Cash and cash equivalents $ 5,020,510 $ 11,141,566 Revenues $ 2,921,063 $ 494,897
Accounts receivable 326,181 - Cost of revenues (1,812,187) -
Inventories 1,508,244 - Gross profit 1,108,876 494,897
Finance lease receivables, net, current portion 10,254 - Operating expenses
Prepayments, receivables and other assets, net 3,793,468 70,421 Selling, general and administrative expenses (4,024,672) (1,517,804)
Escrow receivable due within one year 600,000 - Amortization of intangible assets (308,043) (659,558)
Due from related parties 140,498 - Impairments of intangible assets and goodwill (1,225,073) (8,179,381)
Total Current Assets 11,399,155 11,211,987 Total operating expenses (5,557,788) (10,356,743)
Loss from operations (4,448,912) (9,861,846)
Property and equipment, net 125,885 8,872 Other (expenses) income, net (37,830) 2,874
Interest expenses (33,878) -
Other Assets Loss before income taxes (4,520,620) (9,858,972)
Intangible assets, net 296,091 1,953,223 Income tax expenses (21,905) -
Prepayments for intangible assets 470,706 - Net loss (4,542,525) (9,858,972)
Escrow receivable - 1,200,000 Net income attributable to noncontrolling interests (7,344) -
Finance lease receivables, net 22,298 - Net loss attributable to stockholders $ (4,549,869) $ (9,858,972)
Total Assets $ 12,314,135 $ 14,374,082 Net loss $ (4,542,525) $ (9,858,972)
Other comprehensive (loss) income
LIABILITIES AND EQUITY Foreign currency translation adjustment (175,010) 854,001
Current Liabilities Comprehensive Loss (4,717,535) (9,004,971)
Borrowings from financial institutions $ 219,157 $ - Less: total comprehensive income attributable to noncontrolling      interests (7,344) -
Borrowings from third parties 476,765 - Total comprehensive loss attributable to stockholders $ (4,724,879) $ (9,004,971)
Advances from customers 38,996 - Weighted average number of common stock
Income tax payable 21,905 - Basic and diluted 25,882,287 21,967,776
Accrued expenses and other liabilities 1,500,803 404,604 Loss per share
Due to stockholders 1,080,047 1,090,808 Basic and diluted loss for the years $ (0.18) $ (0.45)
Due to related parties and affiliates 415,931 -
Total Current Liabilities 3,753,604 1,495,412
Borrowings from financial institutions, noncurrent 177,789 -
Total Liabilities 3,931,393 1,495,412
Commitments and Contingencies
Stockholders' Equity
Common stock (par value $0.0001 per share, 100,000,000 shares      authorized; 25,945,255 and 25,879,400 shares issued and      outstanding at March 31, 2019 and 2018, respectively) 2,595 2,588
Additional paid-in capital 23,833,112 23,611,512
Accumulated deficit (15,031,538) (10,481,669)
Accumulated other comprehensive loss (428,771) (253,761)
Total Stockholders' Equity 8,375,398 12,878,670
Noncontrolling interests 7,344 -
Total Equity 8,382,742 12,878,670
Total Liabilities and Equity $ 12,314,135 $ 14,374,082

 

 

CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS CONSOLIDATED STATEMENTS OF CASH FLOWS
As of March 31, 2019 and 2018 For the Years Ended March 31, 2019 and 2018 For the Years Ended March 31, 2019 and 2018
(Expressed in U.S. dollar, except for the number of shares) (Expressed in U.S. dollar, except for the number of shares) (Expressed in U.S. dollar, except for the number of shares)
March 31, 2019 March 31, 2018 For the Years Ended March 31, For the Years Ended March 31,
ASSETS 2019 2018 2019 2018
Current Assets
Cash and cash equivalents $ 5,020,510 $ 11,141,566 Revenues $ 2,921,063 $ 494,897 Cash Flows from Operating Activities:
Accounts receivable 326,181 - Cost of revenues (1,812,187) - Net loss $ (4,542,525) $ (9,858,972)
Inventories 1,508,244 - Gross profit 1,108,876 494,897 Adjustments to reconcile net loss to net cash used in operating activities:
Finance lease receivables, net, current portion 10,254 - Operating expenses Depreciation of property and equipment 22,851 3,580
Prepayments, receivables and other assets, net 3,793,468 70,421 Selling, general and administrative expenses (4,024,672) (1,517,804) Amortization of intangible assets 308,043 659,558
Escrow receivable due within one year 600,000 - Amortization of intangible assets (308,043) (659,558) Impairments of intangible assets and goodwill 1,225,073 8,179,381
Due from related parties 140,498 - Impairments of intangible assets and goodwill (1,225,073) (8,179,381) Provision of doubtful accounts 5,077 -
Total Current Assets 11,399,155 11,211,987 Total operating expenses (5,557,788) (10,356,743) Changes in operating assets and liabilities:
Loss from operations (4,448,912) (9,861,846)    Accounts receivable (274,507) (52,744)
Property and equipment, net 125,885 8,872 Other (expenses) income, net (37,830) 2,874    Inventories (1,491,928) -
Interest expenses (33,878) -    Prepayments, receivables and other assets (1,930,415) -
Other Assets Loss before income taxes (4,520,620) (9,858,972)    Advances from customers 19,944 -
Intangible assets, net 296,091 1,953,223 Income tax expenses (21,905) -    Income tax payable 21,905 -
Prepayments for intangible assets 470,706 - Net loss (4,542,525) (9,858,972)    Accrued expenses and other liabilities 380,256 293,892
Escrow receivable - 1,200,000 Net income attributable to noncontrolling interests (7,344) - Net Cash Used in Operating Activities (6,256,226) (775,305)
Finance lease receivables, net 22,298 - Net loss attributable to stockholders $ (4,549,869) $ (9,858,972) Cash Flows from Investing Activities:
Total Assets $ 12,314,135 $ 14,374,082 Net loss $ (4,542,525) $ (9,858,972) Purchases of property and equipment (28,870) (2,990)
Other comprehensive (loss) income Purchases of intangible assets (471,555) -
LIABILITIES AND EQUITY Foreign currency translation adjustment (175,010) 854,001 Addition in finance lease receivables (32,200) -
Current Liabilities Comprehensive Loss (4,717,535) (9,004,971) Net Cash Used in Investing Activities (532,625) (2,990)
Borrowings from financial institutions $ 219,157 $ - Less: total comprehensive income attributable to noncontrolling      interests (7,344) - Cash Flows from Financing Activities:
Borrowings from third parties 476,765 - Total comprehensive loss attributable to stockholders $ (4,724,879) $ (9,004,971) Net proceeds from issuance of common stock in the IPO - 9,641,604
Advances from customers 38,996 - Weighted average number of common stock Proceeds from exercise of underwriter's over-allotment option - 1,411,368
Income tax payable 21,905 - Basic and diluted 25,882,287 21,967,776 Proceeds borrowed from stockholders 1,973,479 792,382
Accrued expenses and other liabilities 1,500,803 404,604 Loss per share Repayments to stockholders (1,900,000) (105,630)
Due to stockholders 1,080,047 1,090,808 Basic and diluted loss for the years $ (0.18) $ (0.45) Release of escrow receivable 600,000 -
Due to related parties and affiliates 415,931 - Borrowings from third parties 471,608 -
Total Current Liabilities 3,753,604 1,495,412 Repayments of borrowings from related parties and affiliates (487,115) -
Repayments of noncurrent borrowings from financial institutions (175,581) -
Borrowings from financial institutions, noncurrent 177,789 - Cash received from acquisition 218,816 -
Total Liabilities 3,931,393 1,495,412 Net Cash Provided by Financing Activities 701,207 11,739,724
Effect of exchange rate changes on cash and cash equivalents (33,412) 18,845
Commitments and Contingencies Net (decrease) increase in cash and cash equivalents (6,121,056) 10,980,274
Cash and cash equivalents at beginning of year 11,141,566 161,292
Stockholders' Equity Cash and cash equivalents at end of year $ 5,020,510 $ 11,141,566
Common stock (par value $0.0001 per share, 100,000,000 shares      authorized; 25,945,255 and 25,879,400 shares issued and      outstanding at March 31, 2019 and 2018, respectively) 2,595 2,588 Supplemental Cash Flow Information
Additional paid-in capital 23,833,112 23,611,512 Cash paid for interest expense $ 33,878 $ -
Accumulated deficit (15,031,538) (10,481,669) Cash paid for income tax $ - $ -
Accumulated other comprehensive loss (428,771) (253,761) Non-cash Transaction in Investing and Financing Activities
Total Stockholders' Equity 8,375,398 12,878,670 Unpaid property and equipment purchases $ - $ 4,166
IPO issuance costs net against additional paid-in capital $ - $ 1,264,628
Noncontrolling interests 7,344 -   Escrow receivable in connection with IPO $ - $ 1,200,000
Total Equity 8,382,742 12,878,670   IPO expenses paid by the Company's stockholders $ 70,687 $ 67,277
Total Liabilities and Equity $ 12,314,135 $ 14,374,082   Assume of net liabilities of Ruixi, excluding cash and cash equivalents $ (149,680) $ -

 

Cision View original content:http://www.prnewswire.com/news-releases/senmiao-technology-reports-financial-results-for-fourth-fiscal-quarter-and-fiscal-year-2019-300879679.html

SOURCE Senmiao Technology Limited

In This Story

AIHS