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Senmiao Technology Reports Fiscal 2021 Third Quarter Financial Results, Provides January 2021 Operating Metrics


CHENGDU, China, February 16, 2021 -- Senmiao Technology Limited (“Senmiao”) (Nasdaq: AIHS), a provider of automobile transaction and related services targeting the online ride-hailing industry in China as well as its own online ride-hailing platform, today announced financial results for the fiscal 2021 third quarter ended December 31, 2020.

For full financial tables, please click the following: 

Senmiao Q3 2021 Earnings Release_Final.pdf

Management Commentary

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, “During our fiscal third quarter, we were excited to launch Senmiao’s own online ride-hailing platform, first in Chengdu in October and in Changsha in December 2020. Our platform has helped facilitate over 2.2 million rides since launch, and we are very optimistic about the growth opportunities we see in this business, particularly given the new strategic cooperation we have with various reputable technology and consumer brands in China, including Gaode Map, Meituan, and Chengdu Xingchong, a subsidiary of Star Charge. These partnerships will not only increase our exposure to an expanded customer audience but will also help drive our geographic growth in the years to come.”

Mr. Wen continued, “We are pleased to have achieved sequential top line revenue growth during our third quarter for the second straight period, evidencing growth in our ride-hailing focused businesses. With the significant changes we have made to our business model and new partnerships forged over the course of the past year, we believe we have a tremendous growth opportunity in front of us. In that regard, we recently completed a registered direct offering for aggregate gross proceeds of $7.0 million, which we intend to use toward executing our strategic growth initiatives.”


Financial Review



Total revenues were $1,638,550 for the quarter ended December 31, 2020, compared to $2,745,579 in the same period last year and $1,390,396 for the quarter ended September 30, 2020. The decline from the same period of the prior year was largely due to the impact of COVID-19, which resulted in a significant decrease in the number of facilitated new automobile purchases and a significant number of ride-hailing drivers exiting the ride-hailing business and tendering their vehicles to Senmiao for sublease and sale.


As the ride-hailing markets in Chengdu and Changsha have gradually recovered from the impact of COVID-19 beginning in April 2020, Senmiao also experienced a decrease in the number of automobiles tendered to it by the ride-hailing drivers exiting the business during the quarter ended December 31, 2020 as compared with prior quarters.


Monthly installments collected from automobile sale and leasing customers in the three months ended December 31, 2020, remained stable when compared to the three months ended September 30, 2020. Earlier in 2020, a higher number of ride-hailing drivers delayed their monthly installment payments as a result of the COVID-19 pandemic. However, Senmiao has seen a gradual improvement in collections through the end of 2020 and into 2021.


Senmiao strategically shifted its business focus to include automobile rental options for ride-hailing drivers as a measure of creating additional revenue. The automobile rental business generated revenue of $939,645 for the quarter ended December 31, 2020.


As the ride-hailing industry in China continues to recover, and with Senmiao’s recent partnerships and proactive measures to address the changing market conditions, Senmiao expects revenue to increase in the fourth quarter of its fiscal year 2021 and in subsequent periods.


Cost of Revenues

Cost of revenues was $1,793,815 for the quarter ended December 31, 2020, compared to $1,901,405 during the same period last year. The decline was primarily due to the decrease in the number of automobiles sold, partially offset by a $1,205,826 increase in costs of automobiles under operating leases and $396,965 in direct expense and technical service fees of online ride-hailing platform services, as a result of the commencement and expansion of those two businesses.


Gross Profit (Loss)

Gross loss was $155,265, or approximately 9.5% negative gross margin, for the quarter ended December 31, 2020, compared to gross profit of $844,174, or approximately 30.7% gross margin, in the prior-year period, due to the decreased number of facilitated new automobile purchases. 


Selling, General and Administrative Expenses

Selling, general and administrative expenses were $2,401,250 for the quarter ended December 31, 2020, compared to $1,240,213 during the same period last year. The SG&A increase mainly consisted of an increase of $413,072 in amortization of automobiles which were tendered to Senmiao but have not been sub-leased or sold, an increase of $391,106 in salary and employee benefits as Senmiao’s employees increased from 158 to 201, an increase of $152,235 in professional service fees such as financial, legal and market consulting, and an increase of $204,624 in advertising and promotion, rental and other office expenses.

Net Loss

Net loss from Senmiao’s continuing operations for the quarter ended December 31, 2020 was $3,673,892, compared to $962,700 for the quarter ended December 31, 2019, which was primarily the result of the decrease in revenue and gross profit and increase in selling, general and administrative expenses as stated above, as well as an increase of $545,443 in the change of the fair value of derivative liabilities recorded for the three months ended December 31, 2020.


Loss per Share

Loss per share for continuing operations was approximately $0.07 based on a weighted average number of basic and diluted common stock of 43,822,321, compared to approximately $0.03 based on a weighted average number of basic and diluted common stock of 28,825,281.


Financial Position

As of December 31, 2020, Senmiao had cash and cash equivalents of $3,537,630, compared to $833,888 as of March 31, 2020 for its continuing operations. Total stockholders’ equity was $739,755 as of December 31, 2020, compared to $1,472,357 as of March 31, 2020.


Subsequent to the end of the quarter (on February 10, 2021), Senmiao closed a registered direct offering of an aggregate of 5,072,465 shares of common stock at a price of $1.38 per share for aggregate gross proceeds of $7.0 million. Senmiao has approximately 49.3 million common shares outstanding after the offering.


Impact of COVID-19

With a local outbreak reported in Chengdu in mid-December 2020, the COVID-19 pandemic continued to have an adverse effect on Senmiao's business operations, financial condition and operating results in the quarter ended December 31, 2020, including but not limited to a decrease in revenues from its online ride-hailing services. However, as the ride-hailing market in Chengdu has recovered from the impact of COVID-19 and with the launch of its online ride-hailing platform in Changsha, Senmiao expects its business to continue to improve in the remainder of its current fiscal year ending March 31, 2021.


Further information regarding Senmiao's results of operations for the quarter ended December 31, 2020 can be found in Senmiao's Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission.



Operating Metrics for January 2021 – Over 910,000 Completed Rides on Senmiao’s Ride-Hailing Platform


Since its launch in Chengdu in October 2020 and in Changsha in December 2020, over 2.2 million rides have been completed using Senmiao’s online ride-hailing platform, including over 910,000 rides during January 2021. The growth rate of the number of completed orders and drivers completing rides and earning income via the platform (known as Active Drivers) from December 2020 to January 2021 was approximately 47% and 65%, respectively.


Senmiao has seen a significant increase in the number of rides and Active Drivers following its strategic cooperation with Gaode Map and Meituan, two well-known ride-hailing aggregation platforms in China. Senmiao continued to see strong adoption of its platform in Changsha since its launch in late December 2020.


The table below presents approximate, unaudited operating metrics of Senmiao’s online ride-hailing platform since its launch in October 2020.


Completed Orders (Approximate, in thousands)

Total Fares Paid by Riders

(Approximate, $ in thousands USD)

Active Drivers

October 2020




November 2020




December 2020




January 2021









In addition, as of January 31, 2021, approximately 32% of Active Drivers also lease automobiles from Senmiao, which demonstrates early results from Senmiao’s strategy to cross sell its core ride-hailing focused automobile finance and leasing business with the newer ride-hailing business. 


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 purchase and financing, management, operating lease, guarantee and other automobile transaction services aimed principally at the growing ride-sharing market in Senmiao’s areas of operation in China.  Senmiao also operates Xixingtianxia, its own proprietary online ride-hailing platform.  For more information about Senmiao, please visit:


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 statements concerning the development of Senmiao's automobile transaction, financing, rental and related services and online ride-hailing platform, the Chinese ride-hailing and automobile financial leasing markets, Senmiao's plans, objectives, goals, strategies, and performance, and the impact of COVID-19 on Senmiao's business), as well as the assumptions such statements and other statements that are not statements of historical facts 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


Phone: +86 28 6155 4399


Investor Relations:

The Equity Group Inc.                                                            In China

Adam Prior, Senior Vice President                                         Lucy Ma, Associate

(212) 836-9606                                                                     +86 10 5661 7012                                                                                                    


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