Senmiao Technology Announces Signing of Agreement with SOE Affiliate for Online Ride-hailing Vehicle and Driver Resources in Chengdu

Rhea-AI Summary

Senmiao Technology Limited (Nasdaq: AIHS) announced a strategic partnership with Chengdu Rongcheng Yueda Technology Ltd., a state-owned enterprise, to enhance its online ride-hailing services in Chengdu. Under the agreement, Yueda will utilize Senmiao's platform to provide ride-hailing services while managing its own drivers. The partnership began in August 2022 and lasts until July 31, 2023, subject to renewal. This collaboration aims to strengthen Senmiao's competitive edge in the local market by expanding service capacity.

Positive

• Strategic partnership with state-owned enterprise Yueda for enhanced ride-hailing services.
• Expansion of service capacity in Chengdu's ride-hailing market.
• Agreement allows for management of Yueda's drivers, optimizing operational efficiency.

Negative

• None.

CHENGDU, China, Sept. 15, 2022 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao" or the "Company") (Nasdaq: AIHS), a financing and servicing company focusing on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced that its wholly owned subsidiary Chengdu Xixingtianxia Technology Co., Ltd. ("XXTX") has signed an agreement with Chengdu Rongcheng Yueda Technology Ltd. ("Yueda"), an affiliate of Chengdu City Construction Investment & Management Group Co., Ltd. ("CDCI"), a state-owned enterprise ("SOE") in Chengdu with RMB160 billion in assets.

Pursuant to the agreement, Yueda will utilize Senmiao's online ride-hailing platform to provide ride-hailing services by appointment in Chengdu, using its own vehicle and driver resources while remaining in compliance with relevant regulations. Yueda will be responsible for the management services of its own drivers. Senmiao will assign online ride orders to Yueda's drivers and provide real-time information including service types and prices. Senmiao will pay commission fees to Yueda on a monthly basis, which are based on fares collected from customers. The partnership commenced in August 2022 for a term through July 31, 2023, subject to agreement renewal or early termination.

Xi Wen, Senmiao's Chairman and Chief Executive Officer stated, "We are pleased to announce our cooperation with Yueda, which marks the first business agreement that Senmiao has signed with an affiliate of CDCI, a large SOE with significant resources in various industries in Chengdu. With the addition of Yueda's vehicles and drivers to our platform network in Chengdu, Senmiao expects to expand the scope of our services in the city, strengthening our competitive advantages in the local market."

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, 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:

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
+1 415-568-2255                                                                             +86 10 5661 7012
csohn@equityny.com                                                                       lma@equityny.com

© 2022 Senmiao Technology Ltd. All rights reserved.

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SOURCE Senmiao Technology Limited

FAQ

What is the recent partnership announced by Senmiao Technology (AIHS)?

Senmiao Technology (AIHS) has partnered with Chengdu Rongcheng Yueda Technology Ltd. to enhance ride-hailing services in Chengdu.

When did Senmiao's agreement with Yueda begin?

The partnership began in August 2022.

What are the financial implications of the partnership for Senmiao (AIHS)?

Senmiao will pay commission fees to Yueda based on fares collected from customers.

How long is the agreement between Senmiao and Yueda set to last?

The agreement is set to last until July 31, 2023, subject to renewal or early termination.

What services will Yueda provide under the agreement with Senmiao (AIHS)?

Yueda will provide ride-hailing services by utilizing its own vehicle and driver resources.