Senmiao Technology Reports Fiscal 2024 Third Quarter Financial Results

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: 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]

© 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)

For the Three Months Ended December 31,

For the Nine Months Ended December 31,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Revenues

Revenues

$

1,611,277

$

1,710,172

$

5,510,795

$

6,000,597

Revenues, a related party

7,133

30,748

29,280

323,321

Total revenues

1,618,410

1,740,920

5,540,075

6,323,918

Cost of revenues

Cost of revenues

(1,119,869)

(1,372,916)

(3,693,139)

(5,038,614)

Cost of revenues, a related party

(80,973)

(185,254)

(473,317)

(333,756)

Total cost of revenues

(1,200,842)

(1,558,170)

(4,166,456)

(5,372,370)

Gross profit

417,568

182,750

1,373,619

951,548

Operating expenses

Selling, general and administrative expenses

(1,052,975)

(1,385,580)

(3,398,997)

(4,832,658)

Provision for credit losses

(126,546)

(680,396)

(470,982)

Impairments of inventories

(3,085)

Stock-based compensation

(444,300)

(444,300)

Total operating expenses

(1,497,275)

(1,512,126)

(4,523,693)

(5,306,725)

Loss from operations

(1,079,707)

(1,329,376)

(3,150,074)

(4,355,177)

Other income (expense)

Other income, net

154,234

320,151

251,037

807,276

Interest expense

(7,852)

(6,975)

(10,610)

(6,975)

Interest expense on finance leases

(6,791)

(626)

(23,107)

(8,927)

Change in fair value of derivative liabilities

46,188

30,557

410,027

1,641,650

Total other income, net

185,779

343,107

627,347

2,433,024

Loss before income taxes

(893,928)

(986,269)

(2,522,727)

(1,922,153)

Income tax expense

Net Loss

(893,928)

(986,269)

(2,522,727)

(1,922,153)

Net loss (income) attributable to non-controlling interests from
operations

(40,070)

14,928

234,944

200,175

Net loss attributable to the Company’s stockholders

$

(933,998)

$

(971,341)

$

(2,287,783)

$

(1,721,978)

Net loss

$

(893,928)

$

(986,269)

$

(2,522,727)

$

(1,922,153)

 

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 December 31,

For the Nine Months Ended December 31,

2023

2022

2023

2022

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

Other comprehensive (loss) income

Foreign currency translation adjustment

172,393

328,208

(318,529)

(1,177,365)

Comprehensive loss

(721,535)

(658,061)

(2,841,256)

(3,099,518)

less: Total comprehensive loss (income) attributable to non-controlling
interests

27,449

(75,611)

(206,596)

(159,302)

Total comprehensive loss attributable to stockholders

$

(748,984)

$

(582,450)

$

(2,634,660)

$

(2,940,216)

Weighted average number of common stock

Basic and diluted

9,443,312

7,689,406

8,460,676

7,016,860

Net loss per share – basic and diluted

$

(0.10)

$

(0.13)

$

(0.27)

$

(0.25)

 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

For the Nine Months Ended December 31,

2023

2022

(Unaudited)

(Unaudited)

Cash Flows from Operating Activities:

Net loss

$

(2,522,727)

$

(1,922,153)

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

Depreciation and amortization of property and equipment

702,555

873,480

Stock-based compensation

444,300

Amortization of right-of-use assets

322,904

579,209

Amortization of intangible assets

129,531

128,538

Provision for credit losses

680,396

470,982

Impairments of inventories

3,085

Gain on disposal of equipment

(31,705)

(596,564)

Change in fair value of derivative liabilities

(410,027)

(1,641,650)

Change in operating assets and liabilities

Accounts receivable

43,720

177,273

Accounts receivable, a related party

608

(9,876)

Inventories

64,257

322,689

Finance lease receivables

133,988

187,695

Prepayments, other receivables and other assets

17,146

1,115,661

Accounts payable

192,279

48,108

Advances from customers

(3,577)

10,048

Accrued expenses and other liabilities

595,871

639,657

Operating lease liabilities

(53,776)

(37,872)

Operating lease liabilities – related parties

(50,994)

(99,023)

Net Cash Provided by Operating Activities

254,749

249,287

Cash Flows from Investing Activities:

Purchases of property and equipment

(643,376)

(1,213,996)

Cash received from disposal of property and equipment

102,172

1,527,550

Purchases of intangible assets

(26,408)

Net Cash (Used in) Provided by Investing Activities

(541,204)

287,146

Cash Flows from Financing Activities:

Borrowings from a financial institution

242,943

Repayments from a related party

321,229

(359,383)

Loans to related parties and affiliates

(587,307)

Repayments of borrowings from a financial institution

(111,615)

Principal payments of finance lease liabilities

(171,388)

(349,140)

Net Cash Used in Financing Activities

(194,523)

(101,372)

 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

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

For the Nine Months Ended December 31,

2023

2022

(Unaudited)

(Unaudited)

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

(61,915)

(82,673)

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

(542,893)

352,388

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

1,067,197

1,537,609

Supplemental Cash Flow Information

Cash paid for interest expense

$

10,610

$

6,975

Cash paid for income tax

$

$

Non-cash Transaction in Investing and Financing Activities

Settlement of accounts payable by a related party

86,658

Recognition of right-of-use assets and lease liabilities

$

$

917,786

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

$

349,532

$

118,030

Termination of right-of use assets and lease liabilities

$

$

54,546

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

$

$

252,939

Cashless exercise of November 2021 Investor warrants into common stock

$

$

1,533

 

Source : Senmiao Technology Reports Fiscal 2024 Third Quarter Financial Results

The information provided in this article was created by Cision PR Newswire, our news partner. The author's opinions and the content shared on this page are their own and may not necessarily represent the perspectives of Thailand Business News.

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