Senmiao Technology Reports Fiscal 2024 First Quarter Financial Results
Fiscal 2024 First Quarter Financial and Operating Highlights
- Total revenues of
, compared to$2.1 million in the prior-year period, primarily due to lower revenues from online ride-hailing platform services as a result of increased competition.$2.3 million - From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to June 30, 2023, approximately 31.9 million rides were completed (including orders completed on the platform operated by Senmiao and on partner platforms), with fares paid by riders totaling
. As of August 14, 2023, Senmiao has operations in 26 cities in$103.1 million China , includingChengdu ,Changsha andGuangzhou . - Loss from operations narrowed to
, from$0.8 million in the prior-year period.$1.4 million - Net loss was
, compared to net income of$0.4 million in the prior-year period, primarily due to a$0.2 million decrease in change in fair value of derivative liabilities.$1.3 million
Management Commentary
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We were pleased to have achieved stable revenues for the first quarter of fiscal year 2024 ended June 30, 2023, despite increased competition in the online ride-hailing market in the major cities in which we operate. As a result of our strategic decision to utilize more NEVs, we successfully lowered cost of services, and were able to improve gross profit by
Financial Review
Revenues
Total revenues were
Cost of Revenues
Cost of revenues decreased
Gross Profit
Gross profit was
Selling, General and Administrative Expenses
Selling, general and administrative expenses decreased
Loss from Operations
Loss from operations for the fiscal first quarter ended June 30, 2023 decreased to
Net Loss (Income)
Net loss for the fiscal first quarter ended June 30, 2023, was
Loss (Earnings) per Share
Loss per diluted share for the fiscal first quarter ended June 30, 2023, was approximately
Financial Position
As of June 30, 2023, Senmiao had cash and cash equivalents of
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 June 30, 2023, to be filed with the Securities and Exchange Commission on the date of this earnings release.
About Senmiao Technology Limited
Headquartered in
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
Carolyne Sohn, Vice President Lucy Ma, Associate
+1 408-538-4577 +86 10 5661 7012
csohn@equityny.com lma@equityny.com
Alice Zhang, Associate
+1 212-836-9610
azhang@equityny.com
© 2023 Senmiao Technology Ltd. All rights reserved.
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Expressed in | ||||||
June 30, | March 31, | |||||
2023 | 2023 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 1,173,795 | $ | 1,610,090 | ||
Accounts receivable | 126,760 | 158,435 | ||||
Accounts receivable, a related party | 4,551 | 6,312 | ||||
Inventories | — | 6,678 | ||||
Finance lease receivables, current portion | 136,296 | 146,114 | ||||
Prepayment, other receivables and other assets, net | 1,375,122 | 1,438,243 | ||||
Prepayments - a related party | 147,312 | — | ||||
Due from related parties, net, current portion, | 1,830,943 | 1,488,914 | ||||
Total current assets | 4,794,779 | 4,854,786 | ||||
Property and equipment, net | 3,229,848 | 3,343,457 | ||||
Other assets | ||||||
Operating lease right-of-use assets, net | 106,638 | 121,672 | ||||
Operating lease right-of-use assets, net, related parties | 395,624 | 92,916 | ||||
Financing lease right-of-use assets, net | 530,796 | 623,714 | ||||
Intangible assets, net | 717,954 | 774,324 | ||||
Finance lease receivables, non-current | 92,497 | 71,133 | ||||
Due from a related party, net, non-current | 3,035,085 | 3,640,206 | ||||
Other non-current assets | 637,127 | 716,407 | ||||
Total other assets | 5,515,721 | 6,040,372 | ||||
Total assets | $ | 13,540,348 | $ | 14,238,615 | ||
LIABILITIES, MEZZANNIE EQUITY AND EQUITY | ||||||
Current liabilities | ||||||
Borrowings from a financial institution | $ | 2,733 | $ | 8,813 | ||
Accounts payable | 273,685 | 183,645 | ||||
Advances from customers | 171,273 | 148,188 | ||||
Accrued expenses and other liabilities | 3,597,397 | 3,377,507 | ||||
Due to a related party | — | 8,667 | ||||
Operating lease liabilities | 31,029 | 60,878 | ||||
Operating lease liabilities - related parties | 296,508 | 143,462 | ||||
Financing lease liabilities | 231,110 | 264,052 | ||||
Derivative liabilities | 197,609 | 501,782 | ||||
Current liabilities - discontinued operations | 462,016 | 487,829 | ||||
Total current liabilities | 5,263,360 | 5,184,823 | ||||
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||
(Expressed in | ||||||
June 30, | March 31, | |||||
2023 | 2023 | |||||
(Unaudited) | ||||||
Other liabilities | ||||||
Operating lease liabilities, non-current | 69,680 | 83,485 | ||||
Operating lease liabilities, non-current - related parties | 235,772 | 42,247 | ||||
Financing lease liabilities, non-current | 308,484 | 388,064 | ||||
Deferred tax liability | 40,658 | 42,930 | ||||
Total other liabilities | 654,594 | 556,726 | ||||
Total liabilities | 5,917,954 | 5,741,549 | ||||
Commitments and contingencies (note 19) | ||||||
Mezzanine Equity | ||||||
Series A convertible preferred stock (par value | 242,447 | 269,386 | ||||
Stockholders' equity | ||||||
Common stock (par value | 798 | 773 | ||||
Additional paid-in capital | 43,382,748 | 43,355,834 | ||||
Accumulated deficit | (38,143,122) | (37,715,294) | ||||
Accumulated other comprehensive loss | (1,743,236) | (1,247,099) | ||||
Total Senmiao Technology Limited stockholders' equity | 3,497,188 | 4,394,214 | ||||
Non-controlling interests | 3,882,759 | 3,833,466 | ||||
Total equity | 7,379,947 | 8,227,680 | ||||
Total liabilities, mezzanine equity and equity | $ | 13,540,348 | $ | 14,238,615 |
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||
(Expressed in | ||||||
For the Three Months Ended June 30 | ||||||
2023 | 2022 | |||||
(Unaudited) | (Unaudited) | |||||
Revenues | ||||||
Revenues | $ | 2,080,966 | $ | 2,126,336 | ||
Revenues, a related party | 13,748 | 215,460 | ||||
Total revenues | 2,094,714 | 2,341,796 | ||||
Cost of revenues | ||||||
Cost of revenues | (1,302,595) | (1,835,474) | ||||
Cost of revenues, a related party | (210,179) | (46,342) | ||||
Total cost of revenues | (1,512,774) | (1,881,816) | ||||
Gross profit | 581,940 | 459,980 | ||||
Operating expenses | ||||||
Selling, general and administrative expenses | (1,243,289) | (1,919,347) | ||||
Recovery of (allowance for) credit losses | (127,073) | 21,857 | ||||
Impairments of inventories | — | (3,085) | ||||
Total operating expenses | (1,370,362) | (1,900,575) | ||||
Loss from operations | (788,422) | (1,440,595) | ||||
Other income (expense) | ||||||
Other income, net | 72,149 | 63,153 | ||||
Interest expense | (525) | — | ||||
Interest expense on finance leases | (8,722) | (7,148) | ||||
Change in fair value of derivative liabilities | 304,173 | 1,628,510 | ||||
Total other income, net | 367,075 | 1,684,515 | ||||
Income (loss) before income taxes | (421,347) | 243,920 | ||||
Income tax expense | — | — | ||||
Net income (loss) | (421,347) | 243,920 | ||||
Net loss (income) attributable to non-controlling interests from operations | (6,481) | 88,933 | ||||
Net income (loss) attributable to the Company's stockholders | $ | (427,828) | $ | 332,853 | ||
Net income (loss) | $ | (421,347) | $ | 243,920 |
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (CONTINUED) | ||||||
(Expressed in | ||||||
For the Three Months Ended June 30 | ||||||
2023 | 2022 | |||||
(Unaudited) | (Unaudited) | |||||
Other comprehensive loss | ||||||
Foreign currency translation adjustment | (453,325) | (785,653) | ||||
Comprehensive loss | (874,672) | (541,733) | ||||
less: Total comprehensive income (loss) attributable to noncontrolling interests | 49,293 | (90,748) | ||||
Total comprehensive loss attributable to stockholders | $ | (923,965) | $ | (450,985) | ||
Weighted average number of common stock | ||||||
Basic and diluted | 7,891,392 | 6,305,252 | ||||
Net earnings (loss) per share - basic and diluted | $ | (0.05) | $ | 0.05 |
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
(Expressed in | ||||||
For the Three Months Ended June 30, | ||||||
2023 | 2022 | |||||
(Unaudited) | (Unaudited) | |||||
Cash Flows from Operating Activities: | ||||||
Net income (loss) | $ | (421,347) | $ | 243,920 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating | ||||||
Depreciation of property and equipment | 234,972 | 288,547 | ||||
Amortization of right-of-use assets | 109,620 | 218,446 | ||||
Amortization of intangible assets | 34,837 | 45,716 | ||||
Recovery of (allowance for) credit losses | 127,073 | (21,857) | ||||
Impairments of inventories | — | 3,085 | ||||
Gain on disposal of equipment | (22,665) | 9,144 | ||||
Change in fair value of derivative liabilities | (304,173) | (1,628,510) | ||||
Change in operating assets and liabilities | ||||||
Accounts receivable | 24,083 | 16,836 | ||||
Accounts receivable, a related party | 1,476 | — | ||||
Inventories | 6,540 | 47,478 | ||||
Finance lease receivables | 50,441 | 134,210 | ||||
Prepayments, other receivables and other assets | (11,895) | 614,373 | ||||
Prepayment - a related party | (152,317) | — | ||||
Accounts payable | 103,147 | (11,720) | ||||
Advances from customers | 31,977 | 16,683 | ||||
Accrued expenses and other liabilities | 418,687 | 559,610 | ||||
Operating lease liabilities | (37,238) | (9,137) | ||||
Operating lease liabilities - related parties | 11,648 | (12,685) | ||||
Net Cash Provided by Operating Activities | 204,866 | 514,139 | ||||
Cash Flows from Investing Activities: | ||||||
Purchases of property and equipment | (379,658) | (497) | ||||
Proceeds from sales of equipment | 49,592 | 25,739 | ||||
Purchases of intangible assets | — | (910) | ||||
Net Cash Provided by (Used in) Investing Activities | (330,066) | 24,332 |
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | ||||||
(Expressed in | ||||||
For the Three Months Ended June 30, | ||||||
2023 | 2022 | |||||
(Unaudited) | (Unaudited) | |||||
Cash Flows from Financing Activities: | ||||||
Repayments to related parties and affiliates | (160,850) | — | ||||
Borrowings from related parties and affiliates | — | 349,704 | ||||
Repayments of borrowings from a financial institution | (5,805) | (46,520) | ||||
Principal payments of finance lease liabilities | (80,667) | (132,111) | ||||
Net Cash Provided by (Used in) Financing Activities | (247,322) | 171,073 | ||||
Effect of exchange rate changes on cash and cash equivalents | (63,773) | (40,427) | ||||
Net increase (decrease) in cash and cash equivalents | (436,295) | 669,117 | ||||
Cash and cash equivalents, beginning of the year | 1,610,090 | 1,185,221 | ||||
Cash and cash equivalents, end of the year | $ | 1,173,795 | $ | 1,854,338 | ||
Supplemental Cash Flow Information | ||||||
Cash paid for interest expense | $ | 525 | $ | — | ||
Non-cash Transaction in Investing and Financing Activities | ||||||
Recognition of right-of-use assets and lease liabilities | $ | 356,859 | $ | 155,329 | ||
Recognition of right-of-use assets and lease liabilities, related parties | $ | — | $ | 65,817 |
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SOURCE Senmiao Technology Limited