Business
Senmiao Technology Reports Fiscal 2024 First Quarter Financial Results
CHENGDU, China, Aug. 14, 2023 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (Nasdaq: AIHS), a financing and servicing company focused on the online
About this update from Senmiao Technology Limited
[{"type":"text","content":"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.\nFiscal 2024 First Quarter Financial and Operating Highlights\nTotal 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\nXi 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 dri...