CHENGDU, China, February 15, 2022 -- 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 the fiscal 2022 third quarter ended December 31, 2021. Additional information regarding Senmiao's results of operations for the quarter ended December 31, 2021, can be found in the quarterly report on Form 10-Q that was filed with the U.S. Securities and Exchange Commission on February 14, 2022.

For full financial tables, please click the following: 

AIHS - Senmiao Q2 FY22 Earnings Release_Final.pdf

Fiscal 2022 Third Quarter Financial and Operating Highlights

·         Total revenues of $3.5 million, an increase of approximately 116% from $1.6 million in the prior-year period, primarily as a result of increased operating lease revenues from automobile rentals and revenues from online ride-hailing platform services.

·         Net loss from continuing operations was $0.1 million, decreased from net loss of $3.7 million in the prior-year period.

·         During the nine months ended December 31, 2021, approximately 10.2 million rides were completed through Senmiao’s platform with gross fares paid by riders totaling $32.2 million.

·         During the three months ended December 31, 2021, Senmiao launched its online ride-hailing platform in five cities, expanding its relationship with Gaode Map (AutoNavi Software Co., Ltd.) to Xuzhou and Suzhou, two major cities in Jiangsu Province; Hezhou, a city in Guangxi Province; Shenyang, the capital of Liaoning Province; and Haikou, the capital of Hainan Province.

Management Commentary

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, “We are pleased that our continued top line growth has resulted in an improved bottom line during the third quarter of fiscal year 2022. Our business is primarily driven by our automobile rental leasing business and online ride-hailing platform services. Since its launch in October 2020, we have helped facilitate over 18.1 million rides in 14 cities as of the end of January 2022. As we continue to launch the platform in new cities and expand our relationships with key partners, we anticipate operating lease revenues from automobile rentals will continue to grow, as will revenue from online ride-hailing platform services, which we expect will accelerate our return to profitability.”

Mr. Wen continued, “During the first nine months of fiscal year 2022, we have continued to deepen our strategic relationships with partners such as Meituan and Gaode Map while establishing new cooperations with brands that have a strong local presence in existing and new markets. We believe developing an extensive network of trusted partners will play a critical role in elevating Senmiao’s position as a leading online ride-hailing platform provider in China. We look forward to working closely with new and existing partners as we serve an ever-growing population of ride-hailing drivers and riders.”

Financial Review

Revenues

Total revenues were $3.5 million for the fiscal third quarter ended December 31, 2021, an increase of 116% from $1.6 million in the prior-year period and an increase of 24% from $2.9 million in the prior sequential quarter. The increase was largely due to the $1.0 million increase in operating lease revenues from automobile rentals and $0.7 million increase in revenue contributions from online ride-hailing platform services, which was supported by the launches of our platform in 11 new cities in China as well as the new cooperation model with Meituan during the fiscal third quarter as compared with the prior-year period. This was partially offset by a lack of revenue contributions from the Company’s legacy businesses related to automobile sales and facilitation of automobile transactions and financing, which was a result of the Company’s shift in business focus to automobile leasing.

Cost of Revenues

Cost of revenues increased to $2.7 million for the fiscal third quarter ended December 31, 2021, compared to $1.8 million in the prior-year period, primarily due to a $0.4 million increase in cost of automobiles under operating leases and $0.7 million increase in direct expense and technical service fees related to Senmiao’s online ride-hailing platform. The increase in these two segments is mainly attributable to the expansion of these two businesses.

Gross Profit

Gross profit was $0.9 million for the fiscal third quarter ended December 31, 2021, compared to gross loss of $0.2 million in the prior-year period, primarily as a result of the growth in Senmiao’s operating lease business and the new cooperation model with Meituan.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased to $3.8 million for the fiscal third quarter ended December 31, 2021, from $2.4 million in the prior-year period. The increase was mainly attributable to a $0.6 million increase in salary and employee benefits as Senmiao’s employee headcount increased from 241 to 333; a $0.3 million increase in offices rental and charges; and a $0.5 million increase in financial, legal and marketing consulting, which were partially offset by a $0.3 million decrease in amortization of intangible assets and rendered automobiles that have not been sub-leased as Senmiao leased more automobiles during this quarter than in the prior-year period.

Net Loss

Net loss from Senmiao’s continuing operations for the fiscal third quarter ended December 31, 2021, improved to $0.1 million, from a net loss of $3.7 million in the prior-year period. This was primarily the result of the increased revenues, costs and the gain in change in fair value of derivative liabilities. During the fiscal third quarter ended December 31, 2021, Senmiao had a gain of $3.6 million from change in fair value of derivative liabilities related to warrants issued in Senmiao’s historical offerings, from a loss of $1.0 million in the prior-year period.

Earnings (Loss) per Share

Earnings per share for continuing operations for the fiscal third quarter ended December 31, 2021, was approximately $0.00 based on a weighted average number of basic and diluted common stock of 59.2 million, compared to loss per share of approximately $0.07 based on a weighted average number of basic and diluted common stock of 43.8 million in the prior-year period.

Financial Position

As of December 31, 2021, Senmiao had cash and cash equivalents of $2.8 million, compared to $4.4 million as of March 31, 2021.

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. 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 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 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

Carolyne Sohn, Vice President                                                        Lucy Ma, Associate

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