CHENGDU,
China, Aug. 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 first quarter ended June 30, 2023.
Fiscal 2024 First Quarter Financial and Operating
Highlights
- Total revenues of $2.1 million,
compared to $2.3 million in the
prior-year period, primarily due to lower revenues from online
ride-hailing platform services as a result of increased
competition.
- From October 23, 2020, the date
Senmiao launched its online ride-hailing platform, to June 30, 2023, approximately 31.9 million rides
were completed (including orders completed on the platform operated
by Senmiao and on partner platforms), with fares paid by riders
totaling $103.1 million. As of
August 14, 2023, Senmiao has
operations in 26 cities in China,
including Chengdu, Changsha and Guangzhou.
- Loss from operations narrowed to $0.8
million, from $1.4 million in
the prior-year period.
- Net loss was $0.4 million,
compared to net income of $0.2
million in the prior-year period, primarily due to a
$1.3 million decrease in change in
fair value of derivative liabilities.
Management Commentary
Xi Wen, Chairman, Chief Executive
Officer and President of Senmiao, stated, "We were pleased to have
achieved stable revenues for the first quarter of fiscal year 2024
ended June 30, 2023, despite
increased competition in the online ride-hailing market in the
major cities in which we operate. As a result of our strategic
decision to utilize more NEVs, we successfully lowered cost of
services, and were able to improve gross profit by 26.5% to
$0.6 million. Our ongoing efforts to
streamline our operations resulted in a 35.2% decrease in SG&A
expenses from the prior-year period, which is critical as we work
toward achieving sustainable profitability. While our online
ride-hailing platform services business has been impacted by
mounting competition in the near term, we remain optimistic about
our ability to capture additional market share as travelling and
commuting continue to recover in our core markets. This line of
business complements our other major line of business, such as
automobile rentals, and we continue to see a good amount of
interest from drivers who want to lease their vehicles from
Senmiao. As of June 30, 2023, we have
helped facilitate nearly 32 million rides in 26 cities where we
operate in China, and we will
continue to pursue opportunities to expand our business through
local partnerships, both in terms of scope and geography."
Financial Review
Revenues
Total revenues were $2.1 million
for the fiscal first quarter ended June 30,
2023, compared to $2.3 million
in the prior-year period. During the quarter ended June 30, 2023, the automobile rental business
generated operating lease revenues of $1.1
million, compared to $0.9
million in the prior-year period, primarily due to the
increased average utilization of the rented automobiles from 60.7%
to 79.8%. The online ride-hailing platform services business
generated revenues of $0.9 million,
compared to $1.2 million in the
prior-year period, mainly due to increased market competition
during the period.
Cost of Revenues
Cost of revenues decreased 19.6% to $1.5 million for the fiscal first quarter
ended June 30, 2023, from $1.9 million in the
prior-year period, primarily due to decreased costs of automobiles
under operating leases, decreased maintenance and insurance expense
related to the automobile rental business as Senmiao used more NEVs
during the period, as well as decreased direct expense and
technical service fees for the online ride-hailing platform
services business as a result of fewer completed orders, and
decreased costs of automobile sold during the period.
Gross Profit
Gross profit was $0.6 million for the quarter
ended June 30, 2023, an increase of 26.5% from $0.5 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 35.2% to
$1.2 million for the fiscal first
quarter ended June 30, 2023, from
$1.9 million in the prior-year
period. The decrease was mainly attributable to the Company's
continuous control on costs and ongoing initiatives to streamline
its operations, which resulted in a $0.3
million decrease in salary and employee benefit expenses,
decreased office expenditures and marketing expenses for the online
ride-hailing platform, and other expense reductions.
Loss from Operations
Loss from operations for the fiscal first quarter ended
June 30, 2023 decreased to
$0.8 million, compared to loss from
operations of $1.4 million in the
prior-year period. This was primarily due to the increased gross
profit and $0.5 million decrease in
total operating expenses.
Net Loss (Income)
Net loss for the fiscal first quarter ended June 30, 2023, was $0.4
million, compared to net income of $0.2 million in the prior-year period, primarily
due to a $1.3 million decrease in
change in fair value of derivative liabilities.
Loss (Earnings) per Share
Loss per diluted share for the fiscal first quarter ended
June 30, 2023, was approximately
$0.05 based on a weighted average
number of basic and diluted common stock of 7.9 million, compared
to earnings per diluted share of approximately $0.05 based on a weighted average number of basic
and diluted common stock of 6.3 million in the prior-year
period.
Financial Position
As of June 30, 2023, Senmiao had cash and cash equivalents
of $1.2 million, compared to
$1.6 million as of March 31, 2023. Total stockholders' equity was
$3.5 million as of June 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 June 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)
|
|
|
|
June 30,
|
|
March 31,
|
|
|
2023
|
|
2023
|
|
|
(Unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,173,795
|
|
$
|
1,610,090
|
|
Accounts
receivable
|
|
|
126,760
|
|
|
158,435
|
|
Accounts receivable, a
related party
|
|
|
4,551
|
|
|
6,312
|
|
Inventories
|
|
|
—
|
|
|
6,678
|
|
Finance lease
receivables, current portion
|
|
|
136,296
|
|
|
146,114
|
|
Prepayment, other
receivables and other assets, net
|
|
|
1,375,122
|
|
|
1,438,243
|
|
Prepayments - a related
party
|
|
|
147,312
|
|
|
—
|
|
Due from related
parties, net, current portion,
|
|
|
1,830,943
|
|
|
1,488,914
|
|
Total current
assets
|
|
|
4,794,779
|
|
|
4,854,786
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
3,229,848
|
|
|
3,343,457
|
|
|
|
|
|
|
|
|
Other
assets
|
|
|
|
|
|
|
|
Operating lease
right-of-use assets, net
|
|
|
106,638
|
|
|
121,672
|
|
Operating lease
right-of-use assets, net, related parties
|
|
|
395,624
|
|
|
92,916
|
|
Financing lease
right-of-use assets, net
|
|
|
530,796
|
|
|
623,714
|
|
Intangible assets,
net
|
|
|
717,954
|
|
|
774,324
|
|
Finance lease
receivables, non-current
|
|
|
92,497
|
|
|
71,133
|
|
Due from a related
party, net, non-current
|
|
|
3,035,085
|
|
|
3,640,206
|
|
Other non-current
assets
|
|
|
637,127
|
|
|
716,407
|
|
Total other
assets
|
|
|
5,515,721
|
|
|
6,040,372
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
13,540,348
|
|
$
|
14,238,615
|
|
|
|
|
|
|
|
|
LIABILITIES,
MEZZANNIE EQUITY AND EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Borrowings from a
financial institution
|
|
$
|
2,733
|
|
$
|
8,813
|
|
Accounts
payable
|
|
|
273,685
|
|
|
183,645
|
|
Advances from
customers
|
|
|
171,273
|
|
|
148,188
|
|
Accrued expenses and
other liabilities
|
|
|
3,597,397
|
|
|
3,377,507
|
|
Due to a related
party
|
|
|
—
|
|
|
8,667
|
|
Operating lease
liabilities
|
|
|
31,029
|
|
|
60,878
|
|
Operating lease
liabilities - related parties
|
|
|
296,508
|
|
|
143,462
|
|
Financing lease
liabilities
|
|
|
231,110
|
|
|
264,052
|
|
Derivative
liabilities
|
|
|
197,609
|
|
|
501,782
|
|
Current liabilities -
discontinued operations
|
|
|
462,016
|
|
|
487,829
|
|
Total current
liabilities
|
|
|
5,263,360
|
|
|
5,184,823
|
|
|
|
|
|
|
|
|
SENMIAO TECHNOLOGY LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS (CONTINUED)
|
|
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
June 30,
|
|
March 31,
|
|
|
2023
|
|
2023
|
|
|
(Unaudited)
|
|
|
|
|
Other
liabilities
|
|
|
|
|
|
|
|
Operating lease
liabilities, non-current
|
|
|
69,680
|
|
|
83,485
|
|
Operating lease
liabilities, non-current - related parties
|
|
|
235,772
|
|
|
42,247
|
|
Financing lease
liabilities, non-current
|
|
|
308,484
|
|
|
388,064
|
|
Deferred tax
liability
|
|
|
40,658
|
|
|
42,930
|
|
Total other
liabilities
|
|
|
654,594
|
|
|
556,726
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
5,917,954
|
|
|
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;
1,141 and 1,641 shares issued and outstanding at June 30,
2023 and March 31, 2023,
respectively)
|
|
|
242,447
|
|
|
269,386
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
|
|
Common stock (par value
$0.0001 per share, 500,000,000 shares authorized; 7,993,040 and
7,743,040 shares issued and outstanding at June 30, 2023 and
March 31, 2023, respectively)
|
|
|
798
|
|
|
773
|
|
Additional paid-in
capital
|
|
|
43,382,748
|
|
|
43,355,834
|
|
Accumulated
deficit
|
|
|
(38,143,122)
|
|
|
(37,715,294)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,743,236)
|
|
|
(1,247,099)
|
|
Total Senmiao
Technology Limited stockholders' equity
|
|
|
3,497,188
|
|
|
4,394,214
|
|
|
|
|
|
|
|
|
Non-controlling
interests
|
|
|
3,882,759
|
|
|
3,833,466
|
|
|
|
|
|
|
|
|
Total
equity
|
|
|
7,379,947
|
|
|
8,227,680
|
|
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity
|
|
$
|
13,540,348
|
|
$
|
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 June 30
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Revenues
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
2,080,966
|
|
$
|
2,126,336
|
|
Revenues, a related
party
|
|
|
13,748
|
|
|
215,460
|
|
Total
revenues
|
|
|
2,094,714
|
|
|
2,341,796
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
(1,302,595)
|
|
|
(1,835,474)
|
|
Cost of revenues, a
related party
|
|
|
(210,179)
|
|
|
(46,342)
|
|
Total cost of
revenues
|
|
|
(1,512,774)
|
|
|
(1,881,816)
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
581,940
|
|
|
459,980
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
(1,243,289)
|
|
|
(1,919,347)
|
|
Recovery of (allowance
for) credit losses
|
|
|
(127,073)
|
|
|
21,857
|
|
Impairments of
inventories
|
|
|
—
|
|
|
(3,085)
|
|
Total operating
expenses
|
|
|
(1,370,362)
|
|
|
(1,900,575)
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(788,422)
|
|
|
(1,440,595)
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Other income,
net
|
|
|
72,149
|
|
|
63,153
|
|
Interest
expense
|
|
|
(525)
|
|
|
—
|
|
Interest expense on
finance leases
|
|
|
(8,722)
|
|
|
(7,148)
|
|
Change in fair value of
derivative liabilities
|
|
|
304,173
|
|
|
1,628,510
|
|
Total other income,
net
|
|
|
367,075
|
|
|
1,684,515
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
|
(421,347)
|
|
|
243,920
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(421,347)
|
|
|
243,920
|
|
|
|
|
|
|
|
|
Net loss (income)
attributable to non-controlling interests from
operations
|
|
|
(6,481)
|
|
|
88,933
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to the Company's stockholders
|
|
$
|
(427,828)
|
|
$
|
332,853
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(421,347)
|
|
$
|
243,920
|
|
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 June 30
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Other comprehensive
loss
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
(453,325)
|
|
|
(785,653)
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
|
(874,672)
|
|
|
(541,733)
|
|
|
|
|
|
|
|
|
less: Total
comprehensive income (loss) attributable to noncontrolling
interests
|
|
|
49,293
|
|
|
(90,748)
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to stockholders
|
|
$
|
(923,965)
|
|
$
|
(450,985)
|
|
|
|
|
|
|
|
|
Weighted average number
of common stock
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
7,891,392
|
|
|
6,305,252
|
|
|
|
|
|
|
|
|
Net earnings (loss) per
share - basic and diluted
|
|
$
|
(0.05)
|
|
$
|
0.05
|
|
SENMIAO TECHNOLOGY LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(421,347)
|
|
$
|
243,920
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
|
234,972
|
|
|
288,547
|
|
Amortization of
right-of-use assets
|
|
|
109,620
|
|
|
218,446
|
|
Amortization of
intangible assets
|
|
|
34,837
|
|
|
45,716
|
|
Recovery of (allowance
for) credit losses
|
|
|
127,073
|
|
|
(21,857)
|
|
Impairments of
inventories
|
|
|
—
|
|
|
3,085
|
|
Gain on disposal of
equipment
|
|
|
(22,665)
|
|
|
9,144
|
|
Change in fair value
of derivative liabilities
|
|
|
(304,173)
|
|
|
(1,628,510)
|
|
Change in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
24,083
|
|
|
16,836
|
|
Accounts receivable, a
related party
|
|
|
1,476
|
|
|
—
|
|
Inventories
|
|
|
6,540
|
|
|
47,478
|
|
Finance lease
receivables
|
|
|
50,441
|
|
|
134,210
|
|
Prepayments, other
receivables and other assets
|
|
|
(11,895)
|
|
|
614,373
|
|
Prepayment - a related
party
|
|
|
(152,317)
|
|
|
—
|
|
Accounts
payable
|
|
|
103,147
|
|
|
(11,720)
|
|
Advances from
customers
|
|
|
31,977
|
|
|
16,683
|
|
Accrued expenses and
other liabilities
|
|
|
418,687
|
|
|
559,610
|
|
Operating lease
liabilities
|
|
|
(37,238)
|
|
|
(9,137)
|
|
Operating lease
liabilities - related parties
|
|
|
11,648
|
|
|
(12,685)
|
|
Net Cash Provided
by Operating Activities
|
|
|
204,866
|
|
|
514,139
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(379,658)
|
|
|
(497)
|
|
Proceeds from sales of
equipment
|
|
|
49,592
|
|
|
25,739
|
|
Purchases of intangible
assets
|
|
|
—
|
|
|
(910)
|
|
Net Cash Provided
by (Used in) Investing Activities
|
|
|
(330,066)
|
|
|
24,332
|
|
SENMIAO TECHNOLOGY LIMITED
|
|
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
|
|
(Expressed in U.S.
dollars, except for the number of shares)
|
|
|
|
For the Three Months
Ended June 30,
|
|
|
2023
|
|
2022
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
Repayments to related
parties and affiliates
|
|
|
(160,850)
|
|
|
—
|
|
Borrowings from related
parties and affiliates
|
|
|
—
|
|
|
349,704
|
|
Repayments of
borrowings from a financial institution
|
|
|
(5,805)
|
|
|
(46,520)
|
|
Principal payments of
finance lease liabilities
|
|
|
(80,667)
|
|
|
(132,111)
|
|
Net Cash Provided
by (Used in) Financing Activities
|
|
|
(247,322)
|
|
|
171,073
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
|
|
(63,773)
|
|
|
(40,427)
|
|
|
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents
|
|
|
(436,295)
|
|
|
669,117
|
|
Cash and cash
equivalents, beginning of the year
|
|
|
1,610,090
|
|
|
1,185,221
|
|
Cash and cash
equivalents, end of the year
|
|
$
|
1,173,795
|
|
$
|
1,854,338
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
Cash paid for interest
expense
|
|
$
|
525
|
|
$
|
—
|
|
Non-cash Transaction
in Investing and Financing Activities
|
|
|
|
|
|
|
|
Recognition of
right-of-use assets and lease liabilities
|
|
$
|
356,859
|
|
$
|
155,329
|
|
Recognition of
right-of-use assets and lease liabilities, related
parties
|
|
$
|
—
|
|
$
|
65,817
|
View original
content:https://www.prnewswire.com/news-releases/senmiao-technology-reports-fiscal-2024-first-quarter-financial-results-301900030.html
SOURCE Senmiao Technology Limited
