CHENGDU, China, August 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 its fiscal 2023 first quarter ended June 30, 2022.
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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 June 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 First Quarter Financial and Operating Highlights
· Total revenues of $2.3 million from continuing operations, compared to $0.4 million in the prior-year period
· From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to June 30, 2022, approximately 23 million rides were completed (including orders completed on the platform operated by Senmiao and orders completed on partner platforms, such as Meituan, Xiehua and Anma) with fares paid by riders totaling $72.9 million.
· Net income from continuing operations of $0.2 million, compared to a net loss from continuing operations of $6.2 million in the prior-year period
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, “We were pleased with the top line operation results achieved during the fiscal 2023 first quarter as a result of impressive growth in our automobile rental and online ride-hailing platform services businesses. The Meituan cooperation model that commenced in August 2021 has not only led to increased revenues from online ride-hailing platform services but also a much more favorable margin profile, which helped us to report a solid quarter of profitability for the first quarter ended June 30, 2022. Consequently, our revenue streams are now more equally distributed between our two major lines of business as online ride-hailing platform services accounted for more than 50% of total revenues during the period. We believe we will continue to benefit from the synergies between these two business lines, which we expect will be Senmiao’s primary growth drivers over the long term.”
Mr. Wen continued, “Our online ride-hailing business has demonstrated great resilience despite challenges related to COVID-19 in some of the major cities in which we operate, such as Chengdu. We are pleased to see that the online ride-hailing industry could recovery rapidly from the temporary local lockdowns, and we expect online ride-hailing platform services to continue to recover as we reported a sequential increase in the number of completed orders in July 2022. As of June 30, 2022, our own platform has helped facilitate approximately 18 million rides since launch, with an additional 4.9 million rides completed on our partner platforms, including Xiehua and Anma with which we commenced partnerships in April 2022. Our partners are key to our expansion strategy, and Senmiao plans to maintain and strengthen the relationships with our existing partners while establishing new ones. We believe that the recently announced cooperations with Ctrip and Fliggy will serve as a strong momentum for Senmiao to explore new markets across different platforms and into new regions and cities.”
Total revenues from continuing operations were $2.3 million for the first quarter ended June 30, 2022, compared to $0.4 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 as a result of the expansion of these two businesses.
During the quarter ended June 30, 2022, the automobile rental business generated operating lease revenues of $0.9 million, compared to $0.2 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 $1.2 million, compared to $0.04 million in the prior-year period.
Cost of Revenues
Cost of revenues from continuing operations decreased to $1.9 million for the first quarter ended June 30, 2022, compared to $2.3 million in the prior-year period, primarily due to a $1.2 million decrease in direct expense and technical service fees related to online ride-hailing platform services, partially offset by a $0.7 million increase in costs for automobiles under operating leases as a result of business expansion and a $0.1 million increase in costs of automobile sold.
Gross Profit (Loss)
Gross profit from continuing operations was $0.5 million for the first quarter ended June 30, 2022, compared to a gross loss of $1.9 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 27.5% to $1.9 million for the first quarter ended June 30, 2022, compared to $2.6 million in the prior-year period. The decrease was a result of Senmiao’s cost control initiatives during the quarter, mainly attributable to a $0.7 million decrease in advertising and promotion for the online ride-hailing platform services, a $0.1 million decrease in office rental and charges, and a $0.1 million decrease in salary and employee benefits as the number of our employee decreased from 204 to 166
Net Income (Loss) from Continuing Operations
Net income from continuing operations for the first quarter ended June 30, 2022, was $0.2 million, compared to a net loss of $6.2 million in the prior-year period, which was primarily the result of increased revenues and lower SG&A expenses mentioned above, as well as a $1.6 million gain resulted from the change in fair value of derivative liabilities.
Earnings (Loss) per Share
Earnings per share for continuing operations was approximately $0.05 based on a weighted average number of basic and diluted common stock of 6.3 million, compared to loss per share of approximately $1.02 based on a weighted average number of basic and diluted common stock of 5.3 million.
As of June 30, 2022, Senmiao had cash and cash equivalents of $1.9 million, compared to $1.2 million as of March 31, 2022, for its continuing operations. Total stockholders’ equity was $7.7 million as of June 30, 2022, compared to $8.1 million as of March 31, 2022.
Further information regarding Senmiao's results of operations for the quarter ended June 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.
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