Senmiao Technology Reports Fiscal 2024 Second Quarter Financial Results

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CHENGDU, China, Nov. 14, 2023 /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 second quarter ended September 30, 2023.

Fiscal 2024 Second Quarter Financial and Operating Highlights

  • Total revenues of $1.8 million, compared to $2.2 million in the prior-year period, primarily due to decreased revenues from online ride-hailing platform services as a result of fewer completed orders due to increased competition and compliance checks conducted by a partner platform in Guangzhou.
  • Loss from operations narrowed to $1.3 million, from $1.6 million in the prior-year period due to increased gross profit and decreased operating expenses.
  • Net loss was $1.21 million, compared to $1.18 million in the prior-year period.
  • From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to September 30, 2023, approximately 33.8 million rides were completed (including orders completed on the platform operated by Senmiao and on partner platforms), with fares paid by riders totaling $109.1 million. As of November 14, 2023, Senmiao has operations in 27 cities in China, including Chengdu, Changsha and Guangzhou.

Management Commentary

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "Our fiscal 2024 second quarter results were supported by stable revenue growth from our automobile leasing business, but our top line was impacted by decreased revenue contributions from online ride-hailing platform services due to fewer rides completed during the period as we faced increased competition and experienced compliance checks from one of our major partner platforms in our key city of Guangzhou. However, we increased gross profit by 21.1% thanks to our ongoing shift in business focus from automobile sales to leasing services. At the same time, we continued our cost-cutting efforts and decreased SG&A expenses by more than 27% year over year, which enabled us to narrow loss from operations during the period. We are actively evaluating potential opportunities to grow Senmiao's business and look forward to sharing our progress."

Financial Review

Revenues

Total revenues were $1.8 million for the fiscal second quarter ended September 30, 2023, compared to $2.2 million in the prior-year period. During the quarter ended September 30, 2023, the automobile rental business generated operating lease revenues of $1.0 million, an 8.9% increase from $0.9 million in the prior-year period, primarily due to increased average monthly rental income of the automobiles for operating lease. The online ride-hailing platform services business generated revenues of $0.6 million, compared to $1.0 million in the prior-year period. The decrease was mainly due to fewer completed orders as a result of increased competition and experienced compliance checks conducted by our platform partner Gaode in Guangzhou, one of Senmiao's major markets, during the period.

Cost of Revenues

Cost of revenues decreased 24.8% to approximately $1.4 million for the fiscal second quarter ended September 30, 2023, from $1.9 million in the prior-year period, primarily due to a $0.2 million decrease in costs of automobile sold, a $0.2 million decrease in direct expense and technical service fees for the online ride-hailing platform services business as a result of fewer completed orders, as well as a $0.1 million decrease in maintenance and insurance expense related to the automobile rental business as Senmiao used more NEVs during the period.

Gross Profit

Gross profit was $0.4 million for the quarter ended September 30, 2023, an increase of 21.1% from $0.3 million in the prior-year period. The increase was primarily due to increased gross profit from Senmiao's automobile rental business, partially offset by decreased gross profit from online ride-hailing platform services.

Selling, General and Administrative Expenses

Selling, general and administrative expenses decreased 27.8% to $1.1 million for the fiscal second quarter ended September 30, 2023, from $1.5 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 $0.3 million decrease in salary and employee benefit expenses, decreased amortization in intangible assets and automobiles which were rendered to Senmiao but have not been sub-leased, and decreased office rental and insurance charges.

Loss from Operations

Loss from operations for the fiscal second quarter ended September 30, 2023, narrowed to $1.3 million, from loss from operations of $1.6 million in the prior-year period. This was primarily due to the increased gross profit and a $0.2 million decrease in total operating expenses.

Net Loss

Net loss for the fiscal second quarter ended September 30, 2023, was $1.21 million, compared to $1.18 million in the prior-year period.

Loss per Share

Loss per diluted share for the fiscal second quarter ended September 30, 2023, was approximately $0.12 based on a weighted average number of basic and diluted common stock of 7.8 million, compared to loss per diluted share of approximately $0.15 based on a weighted average number of basic and diluted common stock of 7.0 million in the prior-year period.

Financial Position

As of September 30, 2023, Senmiao had cash and cash equivalents of $1.3 million, compared to $1.6 million as of March 31, 2023. Total stockholders' equity was $2.5 million as of September 30, 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 September 30, 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: http://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 ZhouEmail: edom333@ihongsen.com Phone: +86 28 6155 4399

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

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

© 2023 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)

September 30

March 31

2023

2023

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$

1,305,199

$

1,610,090

Restricted cash

1,915

Accounts receivable

82,288

158,435

Accounts receivable, a related party

8,018

6,312

Inventories

6,678

Finance lease receivables, current portion

104,989

146,114

Prepayments, other receivables and other assets, net

1,491,591

1,438,243

Prepayments to a related party

146,409

Due from related parties, net, current portion

2,123,301

1,488,914

Total current assets

5,263,710

4,854,786

Property and equipment, net

2,945,230

3,343,457

Other assets

Operating lease right-of-use assets, net

97,321

121,672

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

356,636

92,916

Financing lease right-of-use assets, net

468,928

623,714

Intangible assets, net

673,509

774,324

Finance lease receivables, non-current

75,214

71,133

Due from a related party, net, non-current

2,144,893

3,640,206

Other non-current assets

633,224

716,407

Total other assets

4,449,725

6,040,372

Total assets

$

12,658,665

$

14,238,615

LIABILITIES, MEZZANNIE EQUITY AND EQUITY

Current liabilities

Borrowings from a financial institution, current

$

105,733

$

8,813

Accounts payable

357,322

183,645

Advances from customers

151,149

148,188

Accrued expenses and other liabilities

3,824,338

3,377,507

Due to a related party

1,510

8,667

Operating lease liabilities

32,822

60,878

Operating lease liabilities - related parties

293,486

143,462

Financing lease liabilities

233,489

264,052

Derivative liabilities

137,943

501,782

Current liabilities - discontinued operations

459,186

487,829

Total current liabilities

5,596,978

5,184,823

 

 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

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

September 30

March 31,

2023

2023

(Unaudited)

Other liabilities

Borrowings from a financial institution, non-current

140,977

Operating lease liabilities, non-current

59,787

83,485

Operating lease liabilities, non-current - related parties

196,121

42,247

Financing lease liabilities, non-current

247,048

388,064

Deferred tax liability

40,409

42,930

Total other liabilities

684,342

556,726

Total liabilities

6,281,320

5,741,549

Commitments and contingencies

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 September 30, 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; 8,068,040 and    7,743,040 shares issued and outstanding at September 30, 2023 and March 31, 2023,   respectively)

806

773

Additional paid-in capital

43,390,823

43,355,834

Accumulated deficit

(39,069,079)

(37,715,294)

Accumulated other comprehensive loss

(1,778,990)

(1,247,099)

Total Senmiao Technology Limited stockholders' equity

2,543,560

4,394,214

Non-controlling interests

3,599,421

3,833,466

Total equity

6,142,981

8,227,680

Total liabilities, mezzanine equity and equity

$

12,658,665

$

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)

 For the Three MonthsEnded September 30

 For the Six Months

Ended September 30

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

Revenues

$

1,818,552

$

2,164,089

$

3,899,518

$

4,290,425

Revenues, a related party

8,399

77,113

22,147

292,573

Total revenues

1,826,951

2,241,202

3,921,665

4,582,998

Cost of revenues

Cost of revenues

(1,270,675)

(1,830,224)

(2,573,270)

(3,665,698)

Cost of revenues, a related party

(182,165)

(102,160)

(392,344)

(148,502)

Total cost of revenues

(1,452,840)

(1,932,384)

(2,965,614)

(3,814,200)

Gross profit

374,111

308,818

956,051

768,798

Operating expenses

Selling, general and administrative expenses

(1,102,733)

(1,527,731)

(2,346,022)

(3,447,078)

Allowance for credit losses

(553,323)

(366,293)

(680,396)

(344,436)

Impairments of inventories

(3,085)

Total operating expenses

(1,656,056)

(1,894,024)

(3,026,418)

(3,794,599)

Loss from operations

(1,281,945)

(1,585,206)

(2,070,367)

(3,025,801)

Other income (expense)

Other income, net

24,654

423,972

96,803

487,125

Interest expense

(2,233)

(2,758)

Interest expense on finance leases

(7,594)

(1,153)

(16,316)

(8,301)

Change in fair value of derivative liabilities

59,666

(17,417)

363,839

1,611,093

Total other income, net

74,493

405,402

441,568

2,089,917

Loss before income taxes

(1,207,452)

(1,179,804)

(1,628,799)

(935,884)

Income tax expense

Net Loss

(1,207,452)

(1,179,804)

(1,628,799)

(935,884)

Net loss attributable to non-controlling interests from operations

281,495

96,314

275,014

185,247

Net loss attributable to the Company's stockholders

$

(925,957)

$

(1,083,490)

$

(1,353,785)

$

(750,637)

Net loss

$

(1,207,452)

$

(1,179,804)

$

(1,628,799)

$

(935,884)

 

 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (CONTINUED)

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

 For the Three Months Ended September 30

 For the Six Months

Ended September 30

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Other comprehensive loss

Foreign currency translation adjustment

(37,597)

(719,920)

(490,922)

(1,505,573)

Comprehensive loss

(1,245,049)

(1,899,724)

(2,119,721)

(2,441,457)

less: Total comprehensive income (loss) attributable to noncontrolling interests

(283,338)

7,057

(234,045)

(83,691)

Total comprehensive loss attributable to stockholders

$

(961,711)

$

(1,906,781)

$

(1,885,676)

$

(2,357,766)

Weighted average number of common stock

Basic and diluted

7,791,138

7,048,187

7,966,674

6,678,749

Net loss per share - basic and diluted

$

(0.12)

$

(0.15)

$

(0.17)

$

(0.11)

 

 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

For the Six Months Ended September 30,

2023

2022

(Unaudited)

(Unaudited)

Cash Flows from Operating Activities:

Net loss

$

(1,628,799)

$

(935,884)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation of property and equipment

458,567

606,482

Amortization of right-of-use assets

214,120

417,836

Amortization of intangible assets

87,321

93,724

Allowance for credit losses

680,396

344,436

Impairments of inventories

3,085

Gain on disposal of equipment

(27,125)

(350,967)

Change in fair value of derivative liabilities

(363,839)

(1,611,093)

Change in operating assets and liabilities

Accounts receivable

10,307

179,126

Accounts receivable, a related party

(2,125)

(24,624)

Inventories

64,539

324,140

Finance lease receivables

97,917

134,091

Prepayments, other receivables and other assets

(137,549)

766,235

Prepayments, a related party

(149,845)

Accounts payable

188,790

(9,860)

Advances from customers

11,936

43,328

Accrued expenses and other liabilities

656,688

557,047

Operating lease liabilities

(44,293)

(19,052)

Operating lease liabilities - related parties

(28,877)

(5,845)

Net Cash Provided by Operating Activities

88,129

512,205

Cash Flows from Investing Activities:

Purchases of property and equipment

(357,909)

(1,900)

Cash received from disposal of property and equipment

81,251

443,054

Purchases of intangible assets

(26,893)

Net Cash Provided by (Used in) Investing Activities

(276,658)

414,261

 

 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

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

For the Six Months Ended September 30,

2023

2022

(Unaudited)

(Unaudited)

Cash Flows from Financing Activities:

Borrowings from a financial institution, short-term

99,724

Borrowings from a financial institution, long-term

144,286

Borrowings from related parties and affiliates

387,152

Repayments to related parties and affiliates

(122,824)

Loan to related parties

(7,696)

Repayments of current borrowings from a financial institution

(91,389)

Principal payments of finance lease liabilities

(136,416)

(263,688)

Net Cash Provided by (Used in) Financing Activities

(22,926)

32,075

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(91,521)

(178,230)

Net increase (decrease) in cash, cash equivalents and restricted cash

(302,976)

780,311

Cash, cash equivalents and restricted cash, beginning of the period

1,610,090

1,185,221

Cash, cash equivalents and restricted cash, end of the period

1,307,144

1,965,532

Supplemental Cash Flow Information

Cash paid for interest expense

$

2,758

$

Non-cash Transaction in Investing and Financing Activities

Recognition of right-of-use assets and lease liabilities

$

$

170,025

Recognition of right-of-use assets and lease liabilities, related parties

$

351,067

$

64,649

 

 

 

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SOURCE Senmiao Technology Limited

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