EX-99.1 2 tm2330730d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

Senmiao Technology Reports Fiscal 2024 Second Quarter Financial Results

 

CHENGDU, China, November 14, 2023 -- 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: 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

 

© 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