Senmiao Technology Reports Fiscal 2022 Second Quarter Financial Results

Rhea-AI Summary

Senmiao Technology Limited (AIHS) reported a strong fiscal 2022 second quarter, with total revenues rising by 105% to $2.9 million, driven mainly by increased operating lease revenues and ride-hailing platform services. Net losses significantly decreased to $0.1 million from $2.6 million year-over-year. The company facilitated approximately 12.4 million rides, grossing $38.0 million. A partnership with Meituan led to over 1.4 million rides completed on their platform, generating $4.8 million in fares. Despite increased costs, management remains optimistic about future growth in ride-hailing services.

Positive

• Total revenues grew by 105% to $2.9 million.
• Net loss decreased to $0.1 million from $2.6 million year-over-year.
• Partnership with Meituan resulted in over 1.4 million rides generating $4.8 million.
• Online ride-hailing platform service fees contributed $0.6 million in revenue.

Negative

• Gross loss of $0.01 million compared to gross profit of $0.4 million in the prior-year period.
• Cost of revenues increased significantly to $2.9 million driven by operating lease costs.
• Selling, general and administrative expenses rose to $3.0 million, indicating higher operational costs.

CHENGDU, China, Nov. 16, 2021 /PRNewswire/ -- 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 second quarter ended September 30, 2021.

Fiscal 2022 Second Quarter Financial and Operating Highlights

• Total revenues of $2.9 million, an increase of approximately 105% from $1.4 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 reduced to $0.1 million, from $2.6 million in the prior-year period.
• During the six months ended September 30, 2021, approximately 12.4 million rides were completed through the platform with gross fares paid by riders totaling $38.0 million.
• In August 2021, Senmiao signed a new contract with Shanghai Lutuan Technology, an affiliate of Meituan (HK: 3690), whereby online ride-hailing requests and orders will be completed on Meituan's platform ("the major platform") utilizing Senmiao's network of cars and drivers for a set monthly fee. Since this new cooperation model commenced in August 2021, over 1.4 million rides have been completed on the major platform with gross fares paid by riders totaling $4.8 million.

Management Commentary
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We were pleased with the results we achieved during the fiscal 2022 second quarter, more than doubling revenue to $2.9 million and significantly narrowing losses compared to the prior-year period. This was primarily driven by increased operating lease revenues from automobile rentals and significantly greater revenue contributions from our online ride-hailing platform services business as a result of our new cooperation agreement with Meituan, which we believe not only presents Senmiao with an attractive opportunity to expand upon this partnership but also much more favorable terms on a go-forward basis. While we expect automobile rentals will continue to make up the majority of our revenues in the near term, we are optimistic that the online ride-hailing platform services business will begin to make more significant contributions in the periods to come."

Mr. Wen continued, "In October, we announced the launch of our online ride-hailing platform in Xuzhou, the largest city in northern Jiangsu Province with a population of approximately 8.6 million. With this launch, Senmiao's platform is now available in 10 cities across China. We look forward to deepening our relationships with our major partners by expanding into additional markets and gaining market share in existing markets. During the three months ended September 30, 2021, our platform facilitated approximately 4 million completed rides generating gross fares of approximately $12.9 million. We realized $0.6 million in revenue from online ride-hailing platform service fees while paying $0.4 million in incentives to Active Drivers, a much lower amount than in previous quarters. During the period, we also announced multiple partnership agreements with different local online ride-hailing companies who have a strong presence and expertise in their respective markets, which we anticipate will enable Senmiao to gain a foothold in these major cities in the coming quarters."

Financial Review

Revenues
Total revenues were $2.9 million for the fiscal second quarter ended September 30, 2021, an increase of 105% from $1.4 million in the prior-year period. The increase was largely due to the $1.2 million increase in operating lease revenues from automobile rentals and $0.6 million in revenue contributions from online ride-hailing platform services, which had not yet launched in the prior-year period. This was partially offset by decreased revenue contributions from automobile sales and facilitation of automobile transactions and financing during the period.

Cost of Revenues
Cost of revenues increased to $2.9 million for the fiscal second quarter ended September 30, 2021, compared to $1.0 million in the prior-year period, primarily due to a $1.7 million increase in cost of automobiles under operating leases and $0.2 million increase in direct expense and technical service fees related to Senmiao's online ride-hailing platform, as a result of the expansion of those two businesses.

Gross Loss
Gross loss was $0.01 million, for the fiscal second quarter ended September 30, 2021, compared to gross profit of $0.4 million in the prior-year period, due to the decreased number of automobile sales and facilitated new automobile purchases. Senmiao has focused on operating leases to mitigate the impact of the return of automobiles by a substantial number of drivers and the intense competition in the online ride-hailing market in Chengdu and Changsha since 2020. The Company achieved gross profit of $0.3 million from online ride-hailing platform services during the fiscal second quarter ended September 30, 2021, which partially offset the gross losses in other lines of business.

Selling, General and Administrative Expenses
Selling, general and administrative expenses increased to $3.0 million for the fiscal second quarter ended September 30, 2021, from $2.7 million in the prior-year period. The increase was mainly attributable to a $0.7 million increase in salary and employee benefits as Senmiao's employee headcount increased from 200 to 352 and a $0.3 million increase in offices rental and charges, which were partially offset by a $0.4 million decrease in financial, legal and marketing service fees and 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 second quarter ended September 30, 2021, improved to $0.1 million, from a net loss of $2.6 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 second quarter ended September 30, 2021, Senmiao had a gain of $3.0 million from change in fair value of derivative liabilities related to warrants issued in Senmiao's historical offerings, from a loss of $0.1 million in the prior-year period.

Earnings (Loss) per Share
Earnings per share for continuing operations for the fiscal second quarter ended September 30, 2021, was approximately $0.01 based on a weighted average number of basic and diluted common stock of 55.4 million, compared to loss per share of approximately $0.06 based on a weighted average number of basic and diluted common stock of 37.8 million in the prior-year period.

Financial Position
As of September 30, 2021, Senmiao had cash and cash equivalents of $1.8 million, compared to $4.4 million as of March 31, 2021.

The Company's business is capital intensive. Subsequent to the quarter-end (on November 11, 2021), Senmiao closed a private placement of $5.0 million with certain institutional investors of its Series A Preferred Stock, which can be initially converted into shares of the Company's common stock at a conversion price of $0.68 per share, subject to adjustment.

Additional information regarding Senmiao's results of operations for the quarter ended September 30, 2021, can be found in the Form 10-Q that has been filed with the U.S. Securities and Exchange Commission on November 15, 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
+1 415-568-2255	+86 10 5661 7012
csohn@equityny.com	lma@equityny.com

© 2021 Senmiao Technology Ltd.  All rights reserved.

 

 

SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollar, except for the number of shares)
		September 30, 2021			March 31, 2021
		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	1,766,104		$	4,448,075
Accounts receivable, net, current portion			773,264			1,437,195
Inventories			216,490			127,933
Finance lease receivables, net, current portion			458,853			541,605
Prepayments, other receivables and other assets, net			3,947,284			3,905,278
Due from related parties			44,060			39,572
Current assets - discontinued operations			39,007			393,348
Total current assets			7,245,062			10,893,006
Property and equipment, net
Property and equipment, net			5,358,726			3,700,147
Property and equipment, net - discontinued operations			—			5,592
Total property and equipment, net			5,358,726			3,705,739
Other assets
Operating lease right-of-use assets, net			410,698			499,221
Operating lease right-of-use assets, net, related parties			633,326			580,367
Financing lease right-of-use assets, net			2,923,679			4,778,772
Intangible assets, net			898,208			968,131
Goodwill			—			135,388
Accounts receivable, net, noncurrent			38,497			269,183
Finance lease receivables, net, noncurrent			194,167			473,472
Total other assets			5,098,575			7,704,534
Total assets		$	17,702,363		$	22,303,279
LIABILITIES AND EQUITY (DEFICIENCY)
Current liabilities
Borrowings from financial institutions		$	591,712		$	310,662
Accounts payable			178,057			44,769
Advances from customers			233,045			155,586
Income tax payable			17,855			17,408
Accrued expenses and other liabilities			6,555,693			6,655,592
Due to related parties and affiliates			1,297,595			352,827
Operating lease liabilities			71,653			209,644
Operating lease liabilities - related parties			404,997			243,726
Financing lease liabilities			4,998,400			5,172,943
Derivative liabilities			3,147,206			1,278,926
Current liabilities - discontinued operations			644,535			2,336,861
Total current liabilities			18,140,748			16,778,944

 

 

SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Expressed in U.S. dollar, except for the number of shares)
		September 30, 2021			March 31, 2021
		(Unaudited)
Other liabilities
Borrowings from financial institutions, noncurrent			30,482			44,962
Operating lease liabilities, non-current			273,264			263,708
Operating lease liabilities, non-current - related parties			355,594			341,549
Financing lease liabilities, non-current			1,417,374			2,256,553
Deferred tax liability			45,734			44,993
Total other liabilities			2,122,448			2,951,765
Total liabilities			20,263,196			19,730,709
Commitments and contingencies
Stockholders' equity (deficiency)
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 55,452,127 and 49,780,725 shares issued and outstanding at September 30, 2021 and March 31, 2021, respectively)			5,545			4,978
Additional paid-in capital			43,136,098			40,755,327
Accumulated deficit			(39,893,610)			(34,064,921)
Accumulated other comprehensive loss			(843,501)			(838,671)
Total Senmiao Technology Limited stockholders' equity			2,404,532			5,856,713
Non-controlling interests			(4,965,365)			(3,284,143)
Total equity (deficiency)			(2,560,833)			2,572,570
Total liabilities and equity (deficiency)		$	17,702,363		$	22,303,279

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Expressed in U.S. dollar, except for the number of shares)
		For the Three Months Ended						For the Six Months Ended
		September 30,						September 30,
		2021			2020			2021			2020
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenues		$	2,855,909		$	1,390,396		$	4,705,984		$	2,537,312
Cost of revenues			(2,868,309)			(994,515)			(6,647,655)			(1,794,771)
Gross profit (loss)			(12,400)			395,881			(1,941,671)			742,541
Operating expenses
Selling, general and administrative expenses			(2,981,720)			(2,749,209)			(6,664,997)			(4,709,634)
Provision for doubtful accounts, net of recovery			(57,187)			47,540			(102,740)			(81,072)
Impairments of long-lived assets and goodwill			(5,886)			(80,223)			(170,143)			(80,223)
Total operating expenses			(3,044,793)			(2,781,892)			(6,937,880)			(4,870,929)
Loss from operations			(3,057,193)			(2,386,011)			(8,879,551)			(4,128,388)
Other income (expense)
Other income (expense), net			38,705			135,457			(17,954)			129,381
Interest expense			(12,952)			(14,892)			(27,648)			(35,540)
Interest expense on finance leases			(108,208)			(211,053)			(215,847)			(437,230)
Change in fair value of derivative liabilities			3,017,734			(129,961)			1,648,450			(412,941)
Total other income (expense), net			2,935,279			(220,449)			1,387,001			(756,330)
Loss before income taxes			(121,914)			(2,606,460)			(7,492,550)			(4,884,718)
Income tax expense			(11)			(705)			(11)			(6,977)
Net loss from continuing operations			(121,925)			(2,607,165)			(7,492,561)			(4,891,695)
Net income (loss) from discontinued operations, net of applicable income taxes			—			7,875			—			(77,779)
Net loss			(121,925)			(2,599,290)			(7,492,561)			(4,969,474)
Net loss attributable to non-controlling interests from continuing operations			541,851			418,546			1,663,872			808,245
Net income (loss) attributable to stockholders		$	419,926		$	(2,180,744)		$	(5,828,689)		$	(4,161,229)
Net loss		$	(121,925)		$	(2,599,290)		$	(7,492,561)		$	(4,969,474)
Other comprehensive loss
Foreign currency translation adjustment			(3,608)			(165,216)			(22,180)			(153,499)
Comprehensive loss			(125,533)			(2,764,506)			(7,514,741)			(5,122,973)

 

 

SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (CONTINUED) (Expressed in U.S. dollar, except for the number of shares)
			For the Three Months Ended								For the Six Months Ended
			September 30,								September 30,
			2021				2020				2021				2020
			(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
less: Total comprehensive loss attributable to noncontrolling interests				(547,866)				(399,438)				(1,681,222)				(786,824)
Total comprehensive income (loss) attributable to stockholders			$	422,333		$		(2,365,068)		$		(5,833,519)		$		(4,336,149)
Weighted average number of common stock
Basic and diluted				55,386,760				37,802,840				54,066,414				33,429,856
Earnings (loss) per share - basic and diluted
Continuing operations			$	0.01		$		(0.06)		$		(0.11)		$		(0.12)
Earnings (loss) per share - basic and diluted
Discontinued operations			$	—		$		0.00		$		—		$		(0.00)

 

 

SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. dollar, except for the number of shares)
		For the Six Months Ended
		September 30,
		2021			2020
		(Unaudited)			(Unaudited)
Cash Flows from Operating Activities:
Net loss		$	(7,492,561)		$	(4,969,474)
Net loss from discontinued operations			—			(77,779)
Net loss from continuing operations			(7,492,561)			(4,891,695)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property and equipment			521,091			106,608
Stock compensation expense			—			445,000
Amortization of right-of-use assets			2,270,059			2,123,901
Amortization of intangible assets			74,643			41,670
Provision for doubtful accounts, net of recovery			102,740			81,072
Impairments of long-lived assets			170,143			80,223
Gain on disposal of equipment			—			(412)
Change in fair value of derivative liabilities			(1,648,450)			412,941
Change in operating assets and liabilities
Accounts receivable			805,719			124,198
Inventories			(134,268)			278,161
Prepayments, other receivables and other assets			(91,860)			(248,889)
Finance lease receivables			377,710			(46,913)
Accounts payable			132,186			(3,097)
Advances from customers			74,690			11,864
Income tax payable			160			480
Accrued expenses and other liabilities			366,305			1,355,339
Operating lease liabilities			(135,847)			(96,436)
Operating lease liabilities - related parties			(15,084)			61,575
Net cash used in operating activities from continuing operations			(4,622,624)			(164,410)
Net cash used in operating activities from discontinued operations			(1,382,239)			(1,131,564)
Net Cash Used in Operating Activities			(6,004,863)			(1,295,974)
Cash Flows from Investing Activities:
Purchases of property and equipment			(2,139,602)			(19,572)
Net cash used in investing activities from continuing operations			(2,139,602)			(19,572)
Net cash used in investing activities from discontinued operations			(1,393)			(71)
Net Cash Used in Investing Activities			(2,140,995)			(19,643)

 

 

SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) (Expressed in U.S. dollar, except for the number of shares)
		For the Six Months Ended
		September 30,
		2021			2020
		(Unaudited)			(Unaudited)
Cash Flows from Financing Activities:
Net proceeds from issuance of common stock and warrants in a registered direct public offering			5,771,053			—
Net proceeds from issuance of common stock and warrants in an underwritten public offering			—			6,098,297
Net proceeds from issuance of common stock upon warrants exercised			22,015			75,000
Borrowings from a financial institution			578,567			488,932
Repayments to stockholders			—			(28,569)
Loan to a related party			—			(66,427)
Borrowings from a related party			800,000			—
Repayments to related parties and affiliates			(172,528)			(205,900)
Repayments of current borrowings from financial institutions			(318,575)			(150,999)
Principal payments of finance lease liabilities			(1,241,041)			(1,449,554)
Net cash provided by financing activities from continuing operations			5,439,491			4,760,780
Net cash provided by financing activities from discontinued operations			—			28,569
Net Cash Provided by Financing Activities			5,439,491			4,789,349
Effect of exchange rate changes on cash and cash equivalents			24,396			76,259
Net increase (decrease) in cash and cash equivalents			(2,681,971)			3,549,991
Cash and cash equivalents, beginning of period			4,448,075			844,028
Cash and cash equivalents, end of period			1,766,104			4,394,019
Less: Cash and cash equivalents from discontinued operations			—			—
Cash and cash equivalents from continuing operations, end of period		$	1,766,104		$	4,394,019
Supplemental Cash Flow Information
Cash paid for interest expense		$	27,648		$	35,540
Cash paid for income tax		$	—		$	—
Non-cash Transaction in Investing and Financing Activities
Recognition of right-of-use assets and lease liabilities		$	108,201		$	2,976,966
Recognition of right-of-use assets and lease liabilities, related parties		$	180,307		$	—
Acquisition of equipment through prepayment and financing lease receivables offset		$	—		$	312,864
Allocation of fair value of derivative liabilities for issuance of common stock proceeds		$	3,562,404		$	241,919
Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised		$	45,674		$	56,662
Stock issued on deferred stock compensation		$	—		$	445,000

  

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SOURCE Senmiao Technology Limited

FAQ

What were Senmiao's revenue results for the fiscal second quarter ending September 30, 2021?

Senmiao reported total revenues of $2.9 million for the fiscal second quarter, a 105% increase from $1.4 million in the prior-year period.

How much did Senmiao's net loss improve in the fiscal second quarter of 2022?

The net loss from continuing operations improved to $0.1 million, down from $2.6 million in the prior-year period.

What impact did the partnership with Meituan have on Senmiao's operations?

The partnership with Meituan allowed Senmiao to complete over 1.4 million rides generating $4.8 million in gross fares.

What is the earnings per share for Senmiao for the fiscal second quarter ended September 30, 2021?

Earnings per share for continuing operations was approximately $0.01, compared to a loss per share of approximately $0.06 in the prior-year period.

What was Senmiao's cash position as of September 30, 2021?

As of September 30, 2021, Senmiao had cash and cash equivalents of $1.8 million.