CHENGDU, China, November 14, 2023 -- 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 second quarter ended September 30, 2023.
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Fiscal 2024 Second Quarter Financial and Operating Highlights
· Total revenues of $1.8 million, compared to $2.2 million in the prior-year period, primarily due to decreased revenues from online ride-hailing platform services as a result of fewer completed orders due to increased competition and compliance checks conducted by a partner platform in Guangzhou.
· Loss from operations narrowed to $1.3 million, from $1.6 million in the prior-year period due to increased gross profit and decreased operating expenses.
· Net loss was $1.21 million, compared to $1.18 million in the prior-year period.
· From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to September 30, 2023, approximately 33.8 million rides were completed (including orders completed on the platform operated by Senmiao and on partner platforms), with fares paid by riders totaling $109.1 million. As of November 14, 2023, Senmiao has operations in 27 cities in China, including Chengdu, Changsha and Guangzhou.
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, “Our fiscal 2024 second quarter results were supported by stable revenue growth from our automobile leasing business, but our top line was impacted by decreased revenue contributions from online ride-hailing platform services due to fewer rides completed during the period as we faced increased competition and experienced compliance checks from one of our major partner platforms in our key city of Guangzhou. However, we increased gross profit by 21.1% thanks to our ongoing shift in business focus from automobile sales to leasing services. At the same time, we continued our cost-cutting efforts and decreased SG&A expenses by more than 27% year over year, which enabled us to narrow loss from operations during the period. We are actively evaluating potential opportunities to grow Senmiao’s business and look forward to sharing our progress.”
Total revenues were $1.8 million for the fiscal second quarter ended September 30, 2023, compared to $2.2 million in the prior-year period. During the quarter ended September 30, 2023, the automobile rental business generated operating lease revenues of $1.0 million, an 8.9% increase from $0.9 million in the prior-year period, primarily due to increased average monthly rental income of the automobiles for operating lease. The online ride-hailing platform services business generated revenues of $0.6 million, compared to $1.0 million in the prior-year period. The decrease was mainly due to fewer completed orders as a result of increased competition and experienced compliance checks conducted by our platform partner Gaode in Guangzhou, one of Senmiao’s major markets, during the period.
Cost of Revenues
Cost of revenues decreased 24.8% to approximately $1.4 million for the fiscal second quarter ended September 30, 2023, from $1.9 million in the prior-year period, primarily due to a $0.2 million decrease in costs of automobile sold, a $0.2 million decrease in direct expense and technical service fees for the online ride-hailing platform services business as a result of fewer completed orders, as well as a $0.1 million decrease in maintenance and insurance expense related to the automobile rental business as Senmiao used more NEVs during the period.
Gross profit was $0.4 million for the quarter ended September 30, 2023, an increase of 21.1% from $0.3 million in the prior-year period. The increase was primarily due to increased gross profit from Senmiao’s automobile rental business, partially offset by decreased gross profit from online ride-hailing platform services.
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased 27.8% to $1.1 million for the fiscal second quarter ended September 30, 2023, from $1.5 million in the prior-year period, which was mainly attributable to the Company’s ongoing cost control efforts and initiatives to streamline its operations, which resulted in a $0.3 million decrease in salary and employee benefit expenses, decreased amortization in intangible assets and automobiles which were rendered to Senmiao but have not been sub-leased, and decreased office rental and insurance charges.
Loss from Operations
Loss from operations for the fiscal second quarter ended September 30, 2023, narrowed to $1.3 million, from loss from operations of $1.6 million in the prior-year period. This was primarily due to the increased gross profit and a $0.2 million decrease in total operating expenses.
Net loss for the fiscal second quarter ended September 30, 2023, was $1.21 million, compared to $1.18 million in the prior-year period.
Loss per Share
Loss per diluted share for the fiscal second quarter ended September 30, 2023, was approximately $0.12 based on a weighted average number of basic and diluted common stock of 7.8 million, compared to loss per diluted share of approximately $0.15 based on a weighted average number of basic and diluted common stock of 7.0 million in the prior-year period.
As of September 30, 2023, Senmiao had cash and cash equivalents of $1.3 million, compared to $1.6 million as of March 31, 2023. Total stockholders’ equity was $2.5 million as of September 30, 2023, compared to $4.4 million as of March 31, 2023.
Additional information regarding Senmiao's results of operations for this quarterly period can be found in Senmiao’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, to be filed with the Securities and Exchange Commission on the date of this earnings release.
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.
For more information, please contact:
At the Company:
Phone: +86 28 6155 4399
The Equity Group Inc. In China
Carolyne Sohn, Vice President Lucy Ma, Associate
+1 408-538-4577 +86 10 5661 7012
Alice Zhang, Associate
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