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.
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.
(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
