CHENGDU, China, July 8, 2021 -- Senmiao Technology Limited (“Senmiao” or the “Company”) (Nasdaq: AIHS), a financing and servicing company focused on the online ride-hailing industry in China and an operator of its own online ride-sharing platform, today announced financial results for the fiscal year ended March 31, 2021.

For full financial tables, please click the following: 

Senmiao Q4-YE 2021 Earnings Release_Final.pdf

Fiscal 2021 Financial and Operating Highlights

·         Total revenues of $6.2 million, compared to $15.7 million in the prior fiscal year, primarily as a result of fewer newly facilitated automobile purchases and automobiles sold due to the adverse effects of the COVID-19 pandemic on online ride-hailing and the greater transportation industry as public travel restrictions were instituted

·         Significant decrease in revenues from automobile sales was offset by a $2.1 million increase in operating lease revenues from automobile rentals as Senmiao shifted its focus to this business in direct response to the pandemic, as well as $0.9 million in revenues from its online ride-hailing platform, which launched in October 2020 and has seen a significant ramp over the past several months, which is expected to continue given new and expanded partnerships and plans to expand to other cities

·         From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to March 31, 2021, 4.4 million rides were completed through the platform with fares paid by riders totaling $12.4 million

·         Net cash used in operating activities from continuing operations of $2.2 million, compared to $4.5 million in the prior fiscal year

Management Commentary

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, “We believe Senmiao is better positioned today to become the leading financing and servicing company for the online ride-hailing industry in China as a result of the business decisions made in response to the challenges we overcame during the global pandemic. Our more flexible automobile rental options have been well received by the growing population of ride-hailing drivers in China, particularly as the industry has mostly recovered from the devastating impacts of COVID-19 and continues to improve as tourism and day-to-day travel are picking up once again. We anticipate the launch of our own online ride-hailing platform in October of last year to be our primary growth driver going forward, and we continue to ramp its development with key industry partnerships and expansion into new cities. As of the end of June 2021, our platform has helped facilitate 10.5 million rides since launch, and we believe this is only the beginning as we have established licensing agreements allowing us to bring our platform online in major cities including Beijing and Shanghai.”

Mr. Wen continued, “Over the course of fiscal year 2021, we saw sequential top line revenue growth with each passing quarter, demonstrating the accelerating growth trajectory of our ride-hailing focused businesses. We are incredibly excited about the opportunities we see in this space, and given our strong financial position following registered direct offerings in 2021 that generated aggregate gross proceeds of $13.5 million for us to put toward growing the business, we are working earnestly toward becoming a major player in China’s online ride-hailing industry.”

Financial Review

Revenues

Total revenues were $6.2 million for the fiscal year ended March 31, 2021, compared to $15.7 million in the prior fiscal year. The decline from the prior fiscal year was largely due to the impact of COVID-19, which resulted in a significant decrease in the number of new automobile purchases as a significant number of ride-hailing drivers exited the ride-hailing business and tendered their vehicles to Senmiao for sublease and sale.

As the ride-hailing markets in Chengdu and Changsha have gradually recovered from the effects of the pandemic since April 2020, the number of automobiles tendered to Senmiao by ride-hailing drivers exiting the business has also decreased.

During the year ended March 31, 2021, Senmiao strategically shifted its business focus to automobile rental options for ride-hailing drivers. As a result, the automobile rental business generated operating lease revenues of $3.4 million for the year ended March 31, 2021, a 163% increase from $1.3 million in the prior fiscal year.

Cost of Revenues

Cost of revenues decreased to $6.0 million for the year ended March 31, 2021, from $12.3 million in the prior fiscal year, primarily due to a $10.9 million decrease in cost of automobiles sold during the period, which was partially offset by a $3.2 million increase in cost of automobiles under operating leases and a $1.3 million increase in direct expense and technical service fees related to Senmiao’s new online ride-hailing platform, as a result of the commencement and expansion of those two businesses.

Gross Profit

Gross profit was $0.2 million, or 3.1% gross margin, for the year ended March 31, 2021, compared to $3.4 million, or 21.6% gross margin, in the prior fiscal year, due to the decreased number of automobiles sold and facilitated new automobile purchases. During fiscal 2021, Senmiao shifted its business focus to operating its own online ride-hailing platform, which launched in October 2020. This business introduced a new revenue stream for the Company and mitigated the negative impact of the COVID-19 pandemic and intense competition in the online ride-hailing market in Chengdu and Changsha. As noted above, Senmiao incurred increased cost of revenues related to the launch of this new business, as well as paid cash incentives to attract drivers to its platform.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $10.3 million for the year ended March 31, 2021, compared to $5.5 million in the prior fiscal year. The SG&A increase mainly consisted of a $1.0 million increase in amortization of automobiles which were tendered to Senmiao but have not been sub-leased or sold, an increase of $1.9 million in salary and employee benefits as Senmiao’s employee headcount increased from 181 to 275, an increase of $1.0 million in professional service fees such as financial, legal and market consulting, and an increase of $0.9 million in advertising and promotion, rental and other office expenses.

Net Loss

Net loss from Senmiao’s continuing operations for the year ended March 31, 2021, was $12.6 million, compared to $4.3 million in the prior fiscal year, which was primarily the result of the decrease in revenue and gross profit and increase in SG&A expenses as stated above, as well as a $3.5 million increase in the loss as a result of the fair value change of derivative liabilities, and a $0.4 million increase in interest expense on finance leases as a result of an increase in aggregated tendered automobiles from the prior fiscal year.

Loss per Share

Loss per share for continuing operations was approximately $0.26 based on a weighted average number of basic and diluted common stock of 39.4 million, compared to approximately $0.11 based on a weighted average number of basic and diluted common stock of 28.0 million.

Financial Position

As of March 31, 2021, Senmiao had cash and cash equivalents of $4.4 million, compared to $0.8 million as of March 31, 2020, for its continuing operations. Total stockholders’ equity was $2.6 million as of March 31, 2021, compared to $1.5 million as of March 31, 2020.

The Company’s business is capital intensive. Subsequent to year-end (on May 13, 2021), Senmiao closed a registered direct offering of an aggregate of 5,531,916 shares of common stock at a price of $1.175 per share for aggregate gross proceeds of $6.5 million. Senmiao has 55.4 million common shares outstanding after the offering. Following the completion of this offering, the Company’s working capital deficit was $0.1 million.

Further information regarding Senmiao's results of operations for the fiscal year ended March 31, 2021, can be found in Senmiao's Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission.

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 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. The Company routinely provides important information 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 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

Email: edom333@ihongsen.com

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

aprior@equityny.com                                                                      lma@equityny.com

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