Senmiao Technology Reports Fiscal 2024 Third Quarter Financial Results
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Insights
The reported financial performance of Senmiao Technology Limited reflects a mixed picture. Despite a slight decline in total revenues, the narrowing of the loss from operations is noteworthy. This improved operational efficiency could be indicative of effective cost management strategies, which is a positive signal to investors. However, the decrease in revenues from the online ride-hailing platform services, attributed to heightened competition and compliance checks, suggests potential challenges in maintaining market share.
From a financial perspective, the shift towards a more profitable automobile rental business may be a strategic move to diversify revenue streams and reduce dependency on the highly competitive online ride-hailing sector. The gross margin increase is a critical metric, as it implies better profitability per unit of revenue. Stakeholders should monitor whether this trend continues and if it can offset the revenue decline in the core business segment.
Senmiao's financial results reveal underlying trends in the online ride-hailing industry in China. The increase in competition and the impact of compliance checks are not isolated events but part of a broader regulatory and competitive landscape that companies like Senmiao must navigate. The completion of over 35.4 million rides since the launch of their platform indicates significant market penetration but doesn't necessarily translate into profitability.
Investors should consider the long-term viability of Senmiao's business model in light of these industry dynamics. The expansion to 26 cities is an aggressive growth strategy, yet it comes with increased operational complexities and competition. The company's ability to maintain a competitive edge through innovation, partnerships and compliance will be crucial for its sustained growth and market position.
Senmiao's financial performance must be contextualized within the broader economic environment in China, particularly in the technology and ride-hailing sectors. The slight decrease in revenue, while not substantial, could reflect macroeconomic conditions such as consumer spending patterns and regulatory pressures. The narrowing of operational losses points to improved internal efficiencies, which may be a response to these external pressures.
It is essential to consider the scalability of Senmiao's business model in the face of regulatory challenges and market saturation. The company's diversification into automobile rental services and its geographical expansion strategy could mitigate risks associated with the core online ride-hailing business. However, the long-term success will depend on the company's ability to adapt to China's rapidly changing economic policies and consumer preferences.
Fiscal 2024 Third Quarter Financial and Operating Highlights
- Total revenues of
$1.6 million $1.7 million - Loss from operations narrowed to
$1.1 million $1.3 million - Net loss was
$0.9 million $1.0 million - From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to December 31, 2023, more than 35.4 million rides were completed (including orders completed on the platform operated by Senmiao and on partner platforms), with fares paid by riders totaling
$114.0 million China , includingChengdu ,Changsha andGuangzhou .
Management Commentary
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We were pleased to see continued strength in our automobile rental business, which enabled us to achieve a significant gross margin increase and improved bottom-line results for the fiscal 2024 third quarter. While the online ride-hailing platform services business recorded decreased revenues due to increased competition and compliance checks in a couple of our key markets, we are optimistic about our ability to grow the number of completed orders and improving overall operating efficiency through our recently announced partnership with Anhui Lianma Technology Co., Ltd., a company with extensive experience in online ride-hailing platform operation in multiple cities in
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 third quarter ended December 31, 2023, narrowed to
Net Loss
Net loss for the fiscal third quarter ended December 31, 2023, was
Loss per Share
Loss per diluted share for the fiscal third quarter ended December 31, 2023, was approximately
Financial Position
As of December 31, 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 December 31, 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
© 2024 Senmiao Technology Ltd. All rights reserved.
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(Expressed in | ||||||
December 31, | March 31, | |||||
2023 | 2023 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | $ | 1,064,822 | $ | 1,610,090 | ||
Restricted cash | 2,375 | - | ||||
Accounts receivable | 50,820 | 158,435 | ||||
Accounts receivable, a related party | 5,493 | 6,312 | ||||
Inventories | - | 6,678 | ||||
Finance lease receivables, current portion | 150,394 | 146,114 | ||||
Prepayments, other receivables and other assets, net | 1,256,431 | 1,438,243 | ||||
Due from related parties, net, current portion | 2,512,079 | 1,488,914 | ||||
Total current assets | 5,042,414 | 4,854,786 | ||||
Property and equipment, net | 2,959,653 | 3,343,457 | ||||
Other assets | ||||||
Operating lease right-of-use assets, net | 90,982 | 121,672 | ||||
Operating lease right-of-use assets, net, related parties | 325,101 | 92,916 | ||||
Financing lease right-of-use assets, net | 421,645 | 623,714 | ||||
Intangible assets, net | 636,017 | 774,324 | ||||
Finance lease receivable, non-current | 86,184 | 71,133 | ||||
Due from a related party, net, non-current | 1,922,441 | 3,640,206 | ||||
Other non-current assets | 650,713 | 716,407 | ||||
Total other assets | 4,133,083 | 6,040,372 | ||||
Total assets | $ | 12,135,150 | $ | 14,238,615 | ||
LIABILITIES, MEZZANNIE EQUITY AND EQUITY | ||||||
Current liabilities | ||||||
Borrowings from a financial institution, current | $ | 144,871 | $ | 8,813 | ||
Accounts payable | 165,839 | 183,645 | ||||
Advances from customers | 139,732 | 148,188 | ||||
Accrued expenses and other liabilities | 3,846,364 | 3,377,507 | ||||
Due to a related party | 386 | 8,667 | ||||
Operating lease liabilities | 33,840 | 60,878 | ||||
Operating lease liabilities - related parties | 319,323 | 143,462 | ||||
Financing lease liabilities | 204,069 | 264,052 | ||||
Derivative liabilities | 91,755 | 501,782 | ||||
Current liabilities - discontinued operations | 471,868 | 487,829 | ||||
Total current liabilities | 5,418,047 | 5,184,823 | ||||
SENMIAO TECHNOLOGY LIMITED | ||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) | ||||||
(Expressed in | ||||||
December 31, | March 31, | |||||
2023 | 2023 | |||||
(Unaudited) | ||||||
Other liabilities | ||||||
Borrowings from a financial institution, non-current | 108,653 | - | ||||
Operating lease liabilities, non-current | 51,568 | 83,485 | ||||
Operating lease liabilities, non-current - related parties | 161,375 | 42,247 | ||||
Financing lease liabilities, non-current | 253,872 | 388,064 | ||||
Deferred tax liability | 41,525 | 42,930 | ||||
Total other liabilities | 616,993 | 556,726 | ||||
Total liabilities | 6,035,040 | 5,741,549 | ||||
Commitments and contingencies (Note 19) | ||||||
Mezzanine Equity | ||||||
Series A convertible preferred stock (par value | 234,364 | 269,386 | ||||
Stockholders' equity | ||||||
Common stock (par value | 956 | 773 | ||||
Additional paid-in capital | 43,834,973 | 43,355,834 | ||||
Accumulated deficit | (40,003,077) | (37,715,294 | ||||
Accumulated other comprehensive loss | (1,593,976) | (1,247,099 | ||||
Total Senmiao Technology Limited stockholders' equity | 2,238,876 | 4,394,214 | ||||
Non-controlling interests | 3,626,870 | 3,833,466 | ||||
Total equity | 5,865,746 | 8,227,680 | ||||
Total liabilities, mezzanine equity and equity | $ | 12,135,150 | $ | 14,238,615 | ||
SENMIAO TECHNOLOGY LIMITED | ||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS | ||||||||||||||||
(Expressed in | ||||||||||||||||
For the Three Months Ended December 31, | For the Nine Months Ended December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Revenues | ||||||||||||||||
Revenues | $ | 1,611,277 | $ | 1,710,172 | $ | 5,510,795 | $ | 6,000,597 | ||||||||
Revenues, a related party | 7,133 | 30,748 | 29,280 | 323,321 | ||||||||||||
Total revenues | 1,618,410 | 1,740,920 | 5,540,075 | 6,323,918 | ||||||||||||
Cost of revenues | ||||||||||||||||
Cost of revenues | (1,119,869) | (1,372,916) | (3,693,139) | (5,038,614) | ||||||||||||
Cost of revenues, a related party | (80,973) | (185,254) | (473,317) | (333,756) | ||||||||||||
Total cost of revenues | (1,200,842) | (1,558,170) | (4,166,456) | (5,372,370) | ||||||||||||
Gross profit | 417,568 | 182,750 | 1,373,619 | 951,548 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling, general and administrative expenses | (1,052,975) | (1,385,580) | (3,398,997) | (4,832,658) | ||||||||||||
Provision for credit losses | - | (126,546) | (680,396) | (470,982) | ||||||||||||
Impairments of inventories | - | - | - | (3,085) | ||||||||||||
Stock-based compensation | (444,300) | - | (444,300) | - | ||||||||||||
Total operating expenses | (1,497,275) | (1,512,126) | (4,523,693) | (5,306,725) | ||||||||||||
Loss from operations | (1,079,707) | (1,329,376) | (3,150,074) | (4,355,177) | ||||||||||||
Other income (expense) | ||||||||||||||||
Other income, net | 154,234 | 320,151 | 251,037 | 807,276 | ||||||||||||
Interest expense | (7,852) | (6,975) | (10,610) | (6,975) | ||||||||||||
Interest expense on finance leases | (6,791) | (626) | (23,107) | (8,927) | ||||||||||||
Change in fair value of derivative liabilities | 46,188 | 30,557 | 410,027 | 1,641,650 | ||||||||||||
Total other income, net | 185,779 | 343,107 | 627,347 | 2,433,024 | ||||||||||||
Loss before income taxes | (893,928) | (986,269) | (2,522,727) | (1,922,153) | ||||||||||||
Income tax expense | - | - | - | - | ||||||||||||
Net Loss | (893,928) | (986,269) | (2,522,727) | (1,922,153) | ||||||||||||
Net loss (income) attributable to non-controlling interests from | (40,070) | 14,928 | 234,944 | 200,175 | ||||||||||||
Net loss attributable to the Company's stockholders | $ | (933,998) | $ | (971,341) | $ | (2,287,783) | $ | (1,721,978) | ||||||||
Net loss | $ | (893,928) | $ | (986,269) | $ | (2,522,727) | $ | (1,922,153) | ||||||||
SENMIAO TECHNOLOGY LIMITED | |||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (CONTINUED) | |||||||||||||||||||||
(Expressed in | |||||||||||||||||||||
For the Three Months Ended December 31, | For the Nine Months Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||
Other comprehensive (loss) income | |||||||||||||||||||||
Foreign currency translation adjustment | 172,393 | 328,208 | (318,529) | (1,177,365) | |||||||||||||||||
Comprehensive loss | (721,535) | (658,061) | (2,841,256) | (3,099,518) | |||||||||||||||||
less: Total comprehensive loss (income) attributable to non-controlling | 27,449 | (75,611) | (206,596) | (159,302) | |||||||||||||||||
Total comprehensive loss attributable to stockholders | $ | (748,984) | $ | (582,450) | $ | (2,634,660) | $ | (2,940,216) | |||||||||||||
Weighted average number of common stock | |||||||||||||||||||||
Basic and diluted | 9,443,312 | 7,689,406 | 8,460,676 | 7,016,860 | |||||||||||||||||
Net loss per share – basic and diluted | $ | (0.10) | $ | (0.13) | $ | (0.27) | $ | (0.25) | |||||||||||||
SENMIAO TECHNOLOGY LIMITED | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Expressed in | ||||||||
For the Nine Months Ended December 31, | ||||||||
2023 | 2022 | |||||||
(Unaudited) | (Unaudited) | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (2,522,727) | $ | (1,922,153) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization of property and equipment | 702,555 | 873,480 | ||||||
Stock-based compensation | 444,300 | - | ||||||
Amortization of right-of-use assets | 322,904 | 579,209 | ||||||
Amortization of intangible assets | 129,531 | 128,538 | ||||||
Provision for credit losses | 680,396 | 470,982 | ||||||
Impairments of inventories | - | 3,085 | ||||||
Gain on disposal of equipment | (31,705) | (596,564) | ||||||
Change in fair value of derivative liabilities | (410,027) | (1,641,650) | ||||||
Change in operating assets and liabilities | ||||||||
Accounts receivable | 43,720 | 177,273 | ||||||
Accounts receivable, a related party | 608 | (9,876) | ||||||
Inventories | 64,257 | 322,689 | ||||||
Finance lease receivables | 133,988 | 187,695 | ||||||
Prepayments, other receivables and other assets | 17,146 | 1,115,661 | ||||||
Accounts payable | 192,279 | 48,108 | ||||||
Advances from customers | (3,577) | 10,048 | ||||||
Accrued expenses and other liabilities | 595,871 | 639,657 | ||||||
Operating lease liabilities | (53,776) | (37,872) | ||||||
Operating lease liabilities - related parties | (50,994) | (99,023) | ||||||
Net Cash Provided by Operating Activities | 254,749 | 249,287 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchases of property and equipment | (643,376) | (1,213,996) | ||||||
Cash received from disposal of property and equipment | 102,172 | 1,527,550 | ||||||
Purchases of intangible assets | - | (26,408) | ||||||
Net Cash (Used in) Provided by Investing Activities | (541,204) | 287,146 | ||||||
Cash Flows from Financing Activities: | ||||||||
Borrowings from a financial institution | 242,943 | - | ||||||
Repayments from a related party | 321,229 | (359,383) | ||||||
Loans to related parties and affiliates | (587,307) | - | ||||||
Repayments of borrowings from a financial institution | - | (111,615) | ||||||
Principal payments of finance lease liabilities | (171,388) | (349,140) | ||||||
Net Cash Used in Financing Activities | (194,523) | (101,372) | ||||||
SENMIAO TECHNOLOGY LIMITED | ||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) | ||||||||
(Expressed in | ||||||||
For the Nine Months Ended December 31, | ||||||||
2023 | 2022 | |||||||
(Unaudited) | (Unaudited) | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (61,915) | (82,673) | ||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (542,893) | 352,388 | ||||||
Cash, cash equivalents and restricted cash, beginning of the period | 1,610,090 | 1,185,221 | ||||||
Cash, cash equivalents and restricted cash, end of the period | 1,067,197 | 1,537,609 | ||||||
Supplemental Cash Flow Information | ||||||||
Cash paid for interest expense | $ | 10,610 | $ | 6,975 | ||||
Cash paid for income tax | $ | - | $ | - | ||||
Non-cash Transaction in Investing and Financing Activities | ||||||||
Settlement of accounts payable by a related party | 86,658 | - | ||||||
Recognition of right-of-use assets and lease liabilities | $ | - | $ | 917,786 | ||||
Recognition of right-of-use assets and lease liabilities, related parties | $ | 349,532 | $ | 118,030 | ||||
Termination of right-of use assets and lease liabilities | $ | — | $ | 54,546 | ||||
Termination of right-of use assets and lease liabilities, related parties | $ | — | $ | 252,939 | ||||
Cashless exercise of November 2021 Investor warrants into common stock | $ | — | $ | 1,533 | ||||
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SOURCE Senmiao Technology Limited
FAQ
What are Senmiao Technology Limited's (AIHS) total revenues for the fiscal 2024 third quarter?
How many rides were completed by Senmiao Technology Limited (AIHS) from the launch of its online ride-hailing platform to December 31, 2023?
In how many cities does Senmiao Technology Limited (AIHS) have operations as of February 9, 2024?
