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CHENGDU, China, Nov. 14, 2022 /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 2023 second quarter ended September 30, 2022.
Please note that the financial figures of Senmiao's former variable interest entities ("VIEs") Sichuan Senmiao Ronglian Technology Co., Ltd. ("Sichuan Senmiao"), Sichuan Jinkailong Automobile Leasing Co., Ltd. ("Jinkailong") and Chengdu Youlu Technology Ltd. ("Youlu") had no impact on Senmiao's consolidated interim financial information for the three months ended September 30, 2022, as a result of deconsolidation of these former VIEs effective March 31, 2022. The financial results from these former VIEs were classified as discontinued operations in the comparative period in 2021, which were previously classified under Automobile Transaction and Related Services.
Fiscal 2023 Second Quarter Financial and Operating Highlights
Management Commentary
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We were pleased to have achieved strong top line growth during the second quarter of fiscal 2023 due to increased revenue contributions from our automobile rental and online ride-hailing platform services businesses from the prior-year period. This is particularly impressive given the impact of lockdowns in Chengdu on our business as we continue to navigate the ongoing pandemic environment. During the quarter, we generated a gross profit as the online ride-hailing platform services business has yielded increasing margins as we have gained efficiencies under the new business model where Senmiao incurs much lower expenses related to driver incentives. We are seeing the synergies between our automobile rental and online ride-hailing platform services businesses at work, resulting in tangible growth in both business lines. We believe these two business lines will continue to be our key growth drivers. We remain focused on providing quality online ride-hailing services for customers in our key cities while continuing to support and empower our drivers."
Mr. Wen continued, "We continued expanding our online ride-hailing business to new cities and building symbiotic partnerships during the quarter ended September 30, 2022. We launched our online ride-hailing platform in the cities of Tianjin and Foshan, increasing Senmiao's presence to a total of 26 cities. We also initiated cooperative partnerships in vehicle rental and leasing services, new energy vehicle charging services, and vehicle and driver resources in two of our key cities, Chengdu and Guangzhou, to further support our growth. We believe these partnerships present immediate value and potential future opportunities for our drivers. We plan to continue strengthening and expanding our partnership base to enable Senmiao to grow into new regions and improve access to our services."
Financial Review
Revenues
Total revenues from continuing operations were $2.2 million for the second quarter ended September 30, 2022, compared to $1.1 million in the prior-year period. The increase was largely due to increased contributions from operating lease revenues from automobile rentals and online ride-hailing platform services.
During the second quarter ended September 30, 2022, the automobile rental business generated operating lease revenues of $0.9 million, compared to $0.4 million in the prior-year period, due to a significant increase in the number of automobiles leased. The online ride-hailing platform services business generated revenues of $1.0 million, compared to $0.6 million in the prior-year period.
Cost of Revenues
Cost of revenues from continuing operations increased to $1.9 million for the second quarter ended September 30, 2022, compared to $1.5 million in the prior-year period, primarily due to a $0.3 million increase in costs of automobiles under operating leases as a result of business expansion and a $0.2 million increase in costs of automobile sold, partially offset by a $0.1 million decrease in direct expense and technical service fees related to online ride-hailing platform services.
Gross Profit (Loss)
Gross profit from continuing operations was $0.3 million for the second quarter ended September 30, 2022, compared to a gross loss of $0.4 million in the prior-year period, primarily due to the increase in gross profit from online ride-hailing platform services.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses from continuing operations decreased by 16.4% to $1.5 million for the second quarter ended September 30, 2022, compared to $1.8 million in the prior-year period. The decrease was a result of Senmiao's cost control initiatives during the quarter, mainly attributable to a $0.2 million decrease in salary and employee benefits as the number of our employee decreased from 202 to 190, a $0.1 million decrease in office rental expenditures, as well as decreased professional service fees.
Net Income (Loss) from Continuing Operations
Net loss from continuing operations for the second quarter ended September 30, 2022, was $1.2 million, compared to net income of $0.7 million in the prior-year period, which was primarily as a result of a $3.0 million gain due to the change in fair value of derivative liabilities in the prior-year period.
Earnings (Loss) per Share
Loss per share for continuing operations was approximately $0.15 based on a weighted average number of basic and diluted common stock of 7.0 million, compared to earnings per share of approximately $0.19 based on a weighted average number of basic and diluted common stock of 5.5 million.
Financial Position
As of September 30, 2022, Senmiao had cash and cash equivalents of $2.0 million, compared to $1.2 million as of March 31, 2022, for its continuing operations. Total stockholders' equity was $6.3 million as of September 30, 2022, compared to $8.1 million as of March 31, 2022.
Further information regarding Senmiao's results of operations for the quarter ended September 30, 2022 can be found in Senmiao's Form 10-Q, which will be filed with the Securities and Exchange Commission today.
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 ZhouEmail: edom333@ihongsen.com Phone: +86 28 6155 4399
Investor Relations:The Equity Group Inc. In ChinaCarolyne Sohn, Vice President Lucy Ma, Associate+1 408-538-4577 +86 10 5661 7012csohn@equityny.com lma@equityny.com
Alice Zhang, Investor Relations Analyst+1 212-836-9610azhang@equityny.com
© 2022 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, | |||||
2022 | 2022 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash, and cash equivalents | $ | 1,965,532 | $ | 1,185,221 | ||
Accounts receivable, net, current portion | 205,397 | 418,022 | ||||
Accounts receivable, a related party | 23,301 | — | ||||
Inventories | — | 286,488 | ||||
Finance lease receivables, net, current portion | 214,614 | 314,264 | ||||
Prepayments, other receivables and other assets, net | 1,681,299 | 2,713,208 | ||||
Due from related parties, current portion, net | 442,461 | 682,335 | ||||
Total current assets | 4,532,604 | 5,599,538 | ||||
Property and equipment, net | 4,235,056 | 5,658,773 | ||||
Other assets | ||||||
Operating lease right-of-use assets, net | 209,768 | 109,621 | ||||
Operating lease right-of-use assets, net, related parties | 407,425 | 515,906 | ||||
Financing lease right-of-use assets, net | 39,665 | 305,933 | ||||
Intangible assets, net | 855,198 | 959,551 | ||||
Accounts receivable, net, non-current | — | 69 | ||||
Finance lease receivables, net, non-current | 57,382 | 92,980 | ||||
Due from a related party, non-current | 5,484,218 | 6,635,746 | ||||
Total other assets | 7,053,656 | 8,619,806 | ||||
Total assets | $ | 15,821,316 | $ | 19,878,117 | ||
LIABILITIES, MEZZANINE EQUITY AND EQUITY | ||||||
Current liabilities | ||||||
Borrowings from a financial institution | $ | 43,239 | $ | 145,542 | ||
Accounts payable | 3,546 | 14,446 | ||||
Advances from customers | 148,513 | 120,629 | ||||
Accrued expenses and other liabilities | 2,651,217 | 2,444,367 | ||||
Due to related parties and affiliates | 119,143 | 11,682 | ||||
Operating lease liabilities | 89,089 | 50,177 | ||||
Operating lease liabilities - related parties | 337,076 | 330,781 | ||||
Financing lease liabilities | 39,665 | 304,557 | ||||
Derivative liabilities | 604,111 | 2,215,204 | ||||
Current liabilities - discontinued operations | 470,966 | 528,426 | ||||
Total current liabilities | 4,506,565 | 6,165,811 | ||||
Other liabilities | ||||||
Operating lease liabilities, non-current | 124,677 | 47,910 | ||||
Operating lease liabilities, non-current - related parties | 200,346 | 226,896 | ||||
Financing lease liabilities, non-current | — | 1,376 | ||||
Deferred tax liability | 41,446 | 46,386 | ||||
Total other liabilities | 366,469 | 322,568 | ||||
Total liabilities | 4,873,034 | 6,488,379 | ||||
SENMIAO TECHNOLOGY LIMITED | |||||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | |||||||||||||
(Expressed in U.S. dollars, except for the number of shares) | |||||||||||||
September 30, | March 31, | ||||||||||||
2022 | 2022 | ||||||||||||
(Unaudited) | |||||||||||||
Commitments and contingencies | |||||||||||||
Mezzanine Equity | |||||||||||||
Series A convertible preferred stock (par value $1,000 per share, 5,000 shares authorized; 1,741 and 5,000 shares issued and outstanding at September 30, 2022 and March 31, 2022, respectively) | 285,802 | 820,799 | |||||||||||
Stockholders' equity | |||||||||||||
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 7,682,908 and 6,186,783 shares issued and outstanding at September 30, 2022 and March 31, 2022, respectively)* | 782 | 630 | |||||||||||
Additional paid-in capital | 43,337,879 | 42,803,033 | |||||||||||
Accumulated deficit | (35,352,182) | (34,601,545) | |||||||||||
Accumulated other comprehensive loss | (1,716,583) | (109,454) | |||||||||||
Total Senmiao Technology Limited stockholders' equity | 6,269,896 | 8,092,664 | |||||||||||
Non-controlling interests | 4,392,584 | 4,476,275 | |||||||||||
Total equity | 10,662,480 | 12,568,939 | |||||||||||
Total liabilities, mezzanine equity and equity | $ | 15,821,316 | $ | 19,878,117 | |||||||||
*Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022
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, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenues | ||||||||||||
Revenues | $ | 2,164,089 | $ | 1,113,719 | $ | 4,290,425 | $ | 1,492,473 | ||||
Revenues, a related party | 77,113 | — | 292,573 | — | ||||||||
Total revenues | 2,241,202 | 1,113,719 | 4,582,998 | 1,492,473 | ||||||||
Cost of revenues | ||||||||||||
Cost of revenues | (1,830,224) | (1,548,857) | (3,665,698) | (3,920,822) | ||||||||
Cost of revenues, a related party | (102,160) | — | (148,502) | — | ||||||||
Total cost of revenues | (1,932,384) | (1,548,857) | (3,814,200) | (3,920,822) | ||||||||
Gross profit (loss) | 308,818 | (435,138) | 768,798 | (2,428,349) | ||||||||
Operating expenses | ||||||||||||
Selling, general and administrative expenses | (1,527,731) | (1,828,438) | (3,447,078) | (4,400,186) | ||||||||
Provision for doubtful accounts, net of recovery | (366,293) | (45,305) | (344,436) | (118,783) | ||||||||
Impairments of inventories | — | — | (3,085) | — | ||||||||
Impairments of long-lived assets and goodwill | — | (3,151) | - | (140,541) | ||||||||
Total operating expenses | (1,894,024) | (1,876,894) | (3,794,599) | (4,659,510) | ||||||||
Loss from operations | (1,585,206) | (2,312,032) | (3,025,801) | (7,087,859) | ||||||||
Other income (expense) | ||||||||||||
Other income (expense), net | 423,972 | 21,140 | 487,125 | (15,470) | ||||||||
Interest expense | — | (667) | — | (6,512) | ||||||||
Interest expense on finance leases | (1,153) | (14,904) | (8,301) | (30,757) | ||||||||
Change in fair value of derivative liabilities | (17,417) | 3,017,734 | 1,611,093 | 1,648,450 | ||||||||
Total other income, net | 405,402 | 3,023,303 | 2,089,917 | 1,595,711 | ||||||||
Income (loss) before income taxes | (1,179,804) | 711,271 | (935,884) | (5,492,148) | ||||||||
Income tax expense | — | (11) | — | (11) | ||||||||
Net income (loss) from continuing operations | (1,179,804) | 711,260 | (935,884) | (5,492,159) | ||||||||
Loss from discontinued operations, net of applicable income taxes | — | (833,185) | — | (2,000,402) | ||||||||
Net loss | (1,179,804) | (121,925) | (935,884) | (7,492,561) | ||||||||
Net loss attributable to non-controlling interests from continuing operations | 96,314 | 325,222 | 185,247 | 1,143,767 | ||||||||
Net loss attributable to non-controlling interests from discontinued operations | — | 216,629 | — | 520,105 | ||||||||
Net income (loss) attributable to the Company's stockholders | $ | (1,083,490) | $ | 419,926 | $ | (750,637) | $ | (5,828,689) | ||||
Net loss | $ | (1,179,804) | $ | (121,925) | $ | (935,884) | $ | (7,492,561) | ||||
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, | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
Other comprehensive loss | ||||||||||||||||||
Foreign currency translation adjustment | (719,920) | (3,608) | (1,505,573) | (22,180) | ||||||||||||||
Comprehensive loss | (1,899,724) | (125,533) | (2,441,457) | (7,514,741) | ||||||||||||||
less: Total comprehensive income (loss) attributable to non-controlling interests | 7,057 | (547,866) | (83,691) | (1,681,222) | ||||||||||||||
Total comprehensive income (loss) attributable to stockholders | $ | (1,906,781) | $ | 422,333 | $ | (2,357,766) | $ | (5,833,519) | ||||||||||
Weighted average number of common stock | ||||||||||||||||||
Basic and diluted* | 7,048,187 | 5,538,676 | 6,678,749 | 5,406,641 | ||||||||||||||
Earnings (loss) per share - basic and diluted* | ||||||||||||||||||
Continuing operations | $ | (0.15) | $ | 0.19 | $ | (0.11) | $ | (0.80) | ||||||||||
Discontinued operations | — | (0.11) | — | (0.27) | ||||||||||||||
Total earnings (loss) per share - basic and diluted* | $ | (0.15) | $ | 0.08 | $ | (0.11) | $ | (1.07) | ||||||||||
*Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Expressed in U.S. dollars) | ||||||
For the Six Months Ended September 30, | ||||||
2022 | 2021 | |||||
(Unaudited) | (Unaudited) | |||||
Cash Flows from Operating Activities: | ||||||
Net loss | $ | (935,884) | $ | (7,492,561) | ||
Net loss from discontinued operations | — | (2,000,402) | ||||
Net loss from continuing operations | (935,884) | (5,492,159) | ||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization of property and equipment | 606,482 | 426,958 | ||||
Amortization of right-of-use assets | 417,836 | 392,978 | ||||
Amortization of intangible assets | 93,724 | 74,643 | ||||
Provision for doubtful accounts, net of recovery | 344,436 | 118,783 | ||||
Impairments of inventories | 3,085 | — | ||||
Impairments of long-lived assets | — | 140,541 | ||||
Gain on disposal of long-lived assets | (350,967) | — | ||||
Change in fair value of derivative liabilities | (1,611,093) | (1,648,450) | ||||
Change in operating assets and liabilities | ||||||
Accounts receivable | 179,126 | 76,107 | ||||
Accounts receivable, a related party | (24,624) | — | ||||
Inventories | 324,140 | (134,268) | ||||
Prepayments, other receivables and other assets | 766,235 | 412,387 | ||||
Finance lease receivables | 134,091 | 401,592 | ||||
Accounts payable | (9,860) | 132,186 | ||||
Advances from customers | 43,328 | (1,218) | ||||
Income tax payable | — | 160 | ||||
Accrued expenses and other liabilities | 557,047 | 91,899 | ||||
Operating lease liabilities | (19,052) | (93,648) | ||||
Operating lease liabilities - related parties | (5,845) | (15,084) | ||||
Net cash provided by (used in) operating activities from continuing operations | 512,205 | (5,116,593) | ||||
Net cash used in operating activities from discontinued operations | — | (888,270) | ||||
Net Cash Provided by (Used in) Operating Activities | 512,205 | (6,004,863) | ||||
Cash Flows from Investing Activities: | ||||||
Purchases of property and equipment | (1,900) | (2,162,825) | ||||
Cash received from disposal of long-lived assets | 443,054 | — | ||||
Purchases of intangible assets | (26,893) | — | ||||
Net cash provided by (used in) investing activities from continuing operations | 414,261 | (2,162,825) | ||||
Net cash provided by investing activities from discontinued operations | — | 21,830 | ||||
Net Cash Provided by (Used in) Investing Activities | 414,261 | (2,140,995) | ||||
Cash Flows from Financing Activities: | ||||||
Net proceeds from issuance of common stock and warrants in a registered direct public offering | — | 5,771,053 | ||||
Net proceeds from issuance of common stock upon warrants exercised | — | 22,015 | ||||
Borrowings from a financial institution | — | 317,850 | ||||
Loan to a related party | — | (4,283,794) | ||||
Borrowings from related parties and affiliates | 387,152 | 800,000 | ||||
Repayments to related parties | — | (172,528) | ||||
Repayments of current borrowings from a financial institution | (91,389) | (318,575) | ||||
SENMIAO TECHNOLOGY LIMITED | |||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | |||||||||||||
(Expressed in U.S. dollars) | |||||||||||||
For the Six Months Ended September 30, | |||||||||||||
2022 | 2021 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||
Principal payments of finance lease liabilities | (263,688) | (203,115) | |||||||||||
Net cash provided by financing activities from continuing operations | 32,075 | 1,932,906 | |||||||||||
Net cash provided by financing activities from discontinued operations | — | 3,506,585 | |||||||||||
Net Cash Provided by Financing Activities | 32,075 | 5,439,491 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | (178,230) | 24,396 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 780,311 | (2,681,971) | |||||||||||
Cash and cash equivalents, beginning of the period | 1,185,221 | 4,448,075 | |||||||||||
Cash and cash equivalents, end of the period | 1,965,532 | 1,766,104 | |||||||||||
Less: Cash and cash equivalents from discontinued operations | — | 132,584 | |||||||||||
Cash and cash equivalents from continuing operations, end of period | $ | 1,965,532 | $ | 1,633,520 | |||||||||
Supplemental Cash Flow Information | |||||||||||||
Cash paid for interest expense | $ | — | $ | 27,648 | |||||||||
Non-cash Transaction in Investing and Financing Activities | |||||||||||||
Recognition of right-of-use assets and lease liabilities | $ | 170,025 | $ | 108,201 | |||||||||
Recognition of right-of-use assets and lease liabilities, related parties | $ | 64,649 | $ | 180,307 | |||||||||
Allocation of fair value of derivative liabilities for issuance of common stock | $ | — | $ | 3,562,404 | |||||||||
Allocation of fair value of derivative liabilities to additional paid in capital upon warrantsexercised | $ | — | $ | 45,674 | |||||||||
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SOURCE Senmiao Technology Limited
