CHENGDU, China, Nov. 15, 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 Zhou
Email: [email protected]
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
[email protected] [email protected]
Alice Zhang, Associate
+1 212-836-9610
[email protected]
© 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 Months
Ended 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
Source : Senmiao Technology Reports Fiscal 2024 Second Quarter Financial Results
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