Senmiao Technology Reports Fiscal 2022 Third Quarter Financial Results


    CHENGDU, China, Feb. 15, 2022 /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 third quarter ended December 31, 2021. Additional information regarding Senmiao's results of operations for the quarter ended December 31, 2021, can be found in the quarterly report on Form 10-Q that was filed with the U.S. Securities and Exchange Commission on February 14, 2022.

    Fiscal 2022 Third Quarter Financial and Operating Highlights

    • Total revenues of $3.5 million, an increase of approximately 116% from $1.6 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 was $0.1 million, decreased from net loss of $3.7 million in the prior-year period.
    • During the nine months ended December 31, 2021, approximately 10.2 million rides were completed through Senmiao's platform with gross fares paid by riders totaling $32.2 million.
    • During the three months ended December 31, 2021, Senmiao launched its online ride-hailing platform in five cities, expanding its relationship with Gaode Map (AutoNavi Software Co., Ltd.) to Xuzhou and Suzhou, two major cities in Jiangsu Province; Hezhou, a city in Guangxi Province; Shenyang, the capital of Liaoning Province; and Haikou, the capital of Hainan Province.

    Management Commentary

    Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We are pleased that our continued top line growth has resulted in an improved bottom line during the third quarter of fiscal year 2022. Our business is primarily driven by our automobile rental leasing business and online ride-hailing platform services. Since its launch in October 2020, we have helped facilitate over 18.1 million rides in 14 cities as of the end of January 2022. As we continue to launch the platform in new cities and expand our relationships with key partners, we anticipate operating lease revenues from automobile rentals will continue to grow, as will revenue from online ride-hailing platform services, which we expect will accelerate our return to profitability."

    Mr. Wen continued, "During the first nine months of fiscal year 2022, we have continued to deepen our strategic relationships with partners such as Meituan and Gaode Map while establishing new cooperations with brands that have a strong local presence in existing and new markets. We believe developing an extensive network of trusted partners will play a critical role in elevating Senmiao's position as a leading online ride-hailing platform provider in China. We look forward to working closely with new and existing partners as we serve an ever-growing population of ride-hailing drivers and riders."

    Financial Review

    Revenues

    Total revenues were $3.5 million for the fiscal third quarter ended December 31, 2021, an increase of 116% from $1.6 million in the prior-year period and an increase of 24% from $2.9 million in the prior sequential quarter. The increase was largely due to the $1.0 million increase in operating lease revenues from automobile rentals and $0.7 million increase in revenue contributions from online ride-hailing platform services, which was supported by the launches of our platform in 11 new cities in China as well as the new cooperation model with Meituan during the fiscal third quarter as compared with the prior-year period. This was partially offset by a lack of revenue contributions from the Company's legacy businesses related to automobile sales and facilitation of automobile transactions and financing, which was a result of the Company's shift in business focus to automobile leasing.

    Cost of Revenues

    Cost of revenues increased to $2.7 million for the fiscal third quarter ended December 31, 2021, compared to $1.8 million in the prior-year period, primarily due to a $0.4 million increase in cost of automobiles under operating leases and $0.7 million increase in direct expense and technical service fees related to Senmiao's online ride-hailing platform. The increase in these two segments is mainly attributable to the expansion of these two businesses.

    Gross Profit

    Gross profit was $0.9 million for the fiscal third quarter ended December 31, 2021, compared to gross loss of $0.2 million in the prior-year period, primarily as a result of the growth in Senmiao's operating lease business and the new cooperation model with Meituan.

    Selling, General and Administrative Expenses

    Selling, general and administrative expenses increased to $3.8 million for the fiscal third quarter ended December 31, 2021, from $2.4 million in the prior-year period. The increase was mainly attributable to a $0.6 million increase in salary and employee benefits as Senmiao's employee headcount increased from 241 to 333; a $0.3 million increase in offices rental and charges; and a $0.5 million increase in financial, legal and marketing consulting, which were partially offset by 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 third quarter ended December 31, 2021, improved to $0.1 million, from a net loss of $3.7 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 third quarter ended December 31, 2021, Senmiao had a gain of $3.6 million from change in fair value of derivative liabilities related to warrants issued in Senmiao's historical offerings, from a loss of $1.0 million in the prior-year period.

    Earnings (Loss) per Share

    Earnings per share for continuing operations for the fiscal third quarter ended December 31, 2021, was approximately $0.00 based on a weighted average number of basic and diluted common stock of 59.2 million, compared to loss per share of approximately $0.07 based on a weighted average number of basic and diluted common stock of 43.8 million in the prior-year period.

    Financial Position

    As of December 31, 2021, Senmiao had cash and cash equivalents of $2.8 million, compared to $4.4 million as of March 31, 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

    © 2022 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)










    December 31, 


    March 31, 



    2021


    2021



    (Unaudited)




    ASSETS







    Current assets







    Cash, and cash equivalents


    $

    2,801,711


    $

    4,448,075

    Accounts receivable, net, current portion



    794,389



    1,437,195

    Inventories



    211,054



    127,933

    Finance lease receivables, net, current portion



    356,504



    541,605

    Prepayments, other receivables and other assets, net



    3,797,476



    3,905,278

    Due from related parties



    27,938



    39,572

    Current assets - discontinued operations



    12,334



    393,348

    Total current assets



    8,001,406



    10,893,006








    Property and equipment, net







    Property and equipment, net



    6,429,798



    3,700,147

    Property and equipment, net - discontinued operations





    5,592

    Total property and equipment, net



    6,429,798



    3,705,739








    Other assets














    Operating lease right-of-use assets, net



    354,312



    499,221

    Operating lease right-of-use assets, net, related parties



    578,951



    580,367

    Financing lease right-of-use assets, net



    2,096,466



    4,778,772

    Intangible assets, net



    939,193



    968,131

    Goodwill





    135,388

    Accounts receivable, net, noncurrent



    29,275



    269,183

    Finance lease receivables, net, noncurrent



    158,163



    473,472

    Total other assets



    4,156,360



    7,704,534








    Total assets


    $

    18,587,564


    $

    22,303,279








    LIABILITIES, MEZZANINE EQUITY AND EQUITY







    Current liabilities







    Borrowings from financial institutions


    $

    500,363


    $

    310,662

    Accounts payable



    124,052



    44,769

    Advances from customers



    749,345



    155,586

    Income tax payable



    17,947



    17,408

    Accrued expenses and other liabilities



    6,561,161



    6,655,592

    Due to related parties and affiliates



    364,705



    352,827

    Operating lease liabilities



    156,769



    209,644

    Operating lease liabilities - related parties



    366,998



    243,726

    Financing lease liabilities



    4,526,480



    5,172,943

    Derivative liabilities



    3,981,377



    1,278,926

    Current liabilities - discontinued operations



    527,104



    2,336,861

    Total current liabilities



    17,876,301



    16,778,944








     

     

     

    SENMIAO TECHNOLOGY LIMITED

    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

    (CONTINUED)

    (Expressed in U.S. dollar, except for the number of shares)




    December 31, 


    March 31, 



    2021


    2021



    (Unaudited)




    Other liabilities







    Borrowings from financial institutions, noncurrent



    27,982



    44,962

    Operating lease liabilities, non-current



    179,778



    263,708

    Operating lease liabilities, non-current - related parties



    293,987



    341,549

    Financing lease liabilities, non-current



    1,311,647



    2,256,553

    Deferred tax liability



    46,386



    44,993

    Total other liabilities



    1,859,780



    2,951,765








    Total liabilities



    19,736,081



    19,730,709








    Commitments and contingencies














    Mezzanine equity (redeemable)







    Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000
       and 0 shares issued and outstanding at December 31, 2021 and March 31, 2021, respectively),
      net of issuance costs of $118,344



    820,799










    Stockholders' equity (deficiency)







    Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 61,783,794 and
      49,780,725 shares issued and outstanding at December 31, 2021 and March 31, 2021,
      respectively)



    6,178



    4,978

    Additional paid-in capital



    42,430,881



    40,755,327

    Accumulated deficit



    (39,738,151)



    (34,064,921)

    Accumulated other comprehensive loss



    (778,437)



    (838,671)

    Total Senmiao Technology Limited stockholders' equity



    1,920,471



    5,856,713








    Non-controlling interests



    (3,889,787)



    (3,284,143)








    Total equity (deficiency)



    (1,969,316)



    2,572,570








    Total liabilities, mezzanine equity and equity (deficiency)


    $

    18,587,564


    $

    22,303,279


     

     

     

    SENMIAO TECHNOLOGY LIMITED

    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 December 31, 


    For the Nine Months Ended December 31, 



    2021


    2020


    2021


    2020



    (Unaudited)


    (Unaudited)

    (Unaudited)


    (Unaudited)

    Revenues


    $

    3,543,049


    $

    1,638,550


    $

    8,249,033


    $

    4,175,862

    Cost of revenues



    (2,692,177)



    (1,793,815)



    (9,339,832)



    (3,588,586)

    Gross profit (loss)



    850,872



    (155,265)



    (1,090,799)



    587,276














    Operating expenses













    Selling, general and administrative expenses



    (3,764,222)



    (2,401,250)



    (10,429,219)



    (7,110,884)

    Provision for doutful accounts, net of
    recovery



    22,330



    187,907



    (80,410)



    106,835

    Impairments of long-lived assets and
    goodwill



    (7,982)



    (41,983)



    (178,125)



    (122,206)

    Total operating expenses



    (3,749,874)



    (2,255,326)



    (10,687,754)



    (7,126,255)














    Loss from operations



    (2,899,002)



    (2,410,591)



    (11,778,553)



    (6,538,979)














    Other income (expense)













    Other expense(income), net



    170,847



    (72,586)



    152,893



    56,795

    Interest expense



    (16,475)



    (2,158)



    (44,123)



    (37,698)

    Interest expense on finance leases



    (97,919)



    (150,227)



    (313,766)



    (587,457)

    Change in fair value of derivative liabilities



    3,536,859



    (1,030,843)



    5,185,309



    (1,443,784)

    Issuance costs for issuing series A
    convertible preferred stock



    (821,892)





    (821,892)



    Total other income (expense), net



    2,771,420



    (1,255,814)



    4,158,421



    (2,012,144)














    Loss before income taxes



    (127,582)



    (3,666,405)



    (7,620,132)



    (8,551,123)

    Income tax expense



    (4,539)



    (7,487)



    (4,550)



    (14,464)

    Net loss from continuing operations



    (132,121)



    (3,673,892)



    (7,624,682)



    (8,565,587)

    Net loss from discontinued operations, net of
    applicable income taxes





    (572)





    (78,351)














    Net loss



    (132,121)



    (3,674,464)



    (7,624,682)



    (8,643,938)

    Net loss attributable to non-controlling
    interests from continuing operations



    287,580



    593,452



    1,951,452



    1,401,697














    Net income (loss) attributable to the
    Company's stockholders


    $

    155,459


    $

    (3,081,012)


    $

    (5,673,230)


    $

    (7,242,241)

    Net loss


    $

    (132,121)


    $

    (3,674,464)


    $

    (7,624,682)


    $

    (8,643,938)














    Other comprehensive income (loss)













    Foreign currency translation adjustment



    70,638



    (61,953)



    48,458



    (215,452)














    Comprehensive loss



    (61,483)



    (3,736,417)



    (7,576,224)



    (8,859,390)

     

     

     

    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 December 31, 


    For the Nine Months Ended December 31, 



    2021


    2020


    2021


    2020



    (Unaudited)


    (Unaudited)

    (Unaudited)


    (Unaudited)

    less: Total comprehensive loss attributable to
    noncontrolling interests



    (303,768)



    (252,130)



    (1,984,990)



    (1,038,954)

    Total comprehensive income (loss)
    attributable to stockholders


    $

    242,285


    $

    (3,484,287)


    $

    (5,591,234)


    $

    (7,820,436)

    Weighted average number of common stock













    Basic and diluted



    59,226,547



    43,822,321



    55,792,713



    36,906,608














    Earnings (loss) per share - basic and diluted













    Continuing operations


    $

    0.00


    $

    (0.07)


    $

    (0.10)


    $

    (0.19)














    Earnings (loss) per share -













    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 Nine Months Ended December 31, 



    2021


    2020



    (Unaudited)


    (Unaudited)

    Cash Flows from Operating Activities:







    Net loss


    $

    (7,624,682)


    $

    (8,643,938)

    Net loss from discontinued operations





    (78,351)

    Net loss from continuing operations



    (7,624,682)



    (8,565,587)

    Adjustments to reconcile net income (loss) to net cash used in operating activities:







    Depreciation and amortization of property and equipment



    849,642



    175,884

    Stock compensation expense



    653,000



    445,000

    Issuance costs for series A convertible preferred stock



    821,892



    Amortization of right-of-use assets



    3,347,999



    3,119,274

    Amortization of intangible assets



    104,829



    59,209

    Provision for doubtful accounts, net of recovery



    80,410



    (106,835)

    Impairments of long-lived assets



    178,125



    122,206

    Gain (loss) on disposal of equipment





    (420)

    Change in fair value of derivative liabilities



    (5,185,309)



    1,443,784

    Change in operating assets and liabilities







    Accounts receivable



    820,818



    227,174

    Inventories



    (126,351)



    226,852

    Prepayments, other receivables and other assets



    396,788



    137,701

    Finance lease receivables



    524,831



    113,911

    Accounts payable



    76,877



    174,160

    Advances from customers



    581,180



    52,453

    Income tax payable





    7,847

    Accrued expenses and other liabilities



    (231,230)



    2,223,905

    Operating lease liabilities



    (149,466)



    (132,885)

    Operating lease liabilities - related parties



    (124,143)



    68,326

    Net cash used in operating activities from continuing operations



    (5,004,790)



    (208,041)

    Net cash used in operating activities from discontinued operations



    (1,454,382)



    (1,578,633)

    Net Cash Used in Operating Activities



    (6,459,172)



    (1,786,674)








    Cash Flows from Investing Activities:







    Purchases of property and equipment



    (3,460,067)



    (199,896)

    Purchases of intangible assets



    (76,637)



    Cash acquired from XXTX, net of cash paid to XXTX





    7,975

    Net cash used in investing activities from continuing operations



    (3,536,704)



    (191,921)

    Net cash used in investing activities from discontinued operations



    (1,398)



    (2,258)

    Net Cash Used in Investing Activities



    (3,538,102)



    (194,179)

     

     

     

    SENMIAO TECHNOLOGY LIMITED

    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (CONTINUED)

    (Expressed in U.S. dollar, except for the number of shares)




    For the Nine Months Ended December 31, 



    2021


    2020



    (Unaudited)


    (Unaudited)








    Cash Flows from Financing Activities:







    Net proceeds from issuance of common stock and warrants in registered direct
    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



    496,117

    Net proceeds from issuance of series A convertible preferred stock and warrants in a
    private placement offering



    4,369,937



    Borrowings from a financial institution



    693,777



    508,275

    Loan to related parties



    (171,738)



    Borrowings from related parties and affiliates



    15,546



    Repayments to related parties and affiliates





    (213,342)

    Repayments of current borrowings from financial institutions



    (529,226)



    (354,504)

    Principal payments of finance lease liabilities



    (1,994,077)



    (1,771,214)

    Net cash provided by financing activities from continuing operations



    8,177,287



    4,763,629

    Net cash used in financing activities from discontinued operations





    (167,315)

    Net Cash Provided by Financing Activities



    8,177,287



    4,596,314








    Effect of exchange rate changes on cash and cash equivalents



    173,623



    83,332








    Net (decrease) increase in cash and cash equivalents



    (1,646,364)



    2,698,793

    Cash and cash equivalents, beginning of period



    4,448,075



    844,027

    Cash and cash equivalents, end of period



    2,801,711



    3,542,820








    Less: Cash and cash equivalents from discontinued operations





    Cash and cash equivalents from continuing operations, end of period


    $

    2,801,711


    $

    3,542,820

    Supplemental Cash Flow Information







    Cash paid for interest expense


    $

    44,123


    $

    35,419

    Cash paid for income tax


    $


    $

    Non-cash Transaction in Investing and Financing Activities







    Recognition of right-of-use assets and lease liabilities


    $

    196,671


    $

    3,145,506

    Recognition of right-of-use assets and lease liabilities, related parties


    $

    180,973


    $

    Acquisition of equipment through prepayment and financing lease receivables offset


    $


    $

    540,968

    Allocation of fair value of derivative liabilities for issuance of common stock proceeds


    $

    7,933,434


    $

    (241,919)

    Allocation of fair value of derivative liabilities to additional paid in capital upon
    warrants exercised


    $

    45,674


    $

    984,803

    Acquisition of XXTX with payables


    $


    $

    314,290

    Acquisition of XXTX's minority interest with issuance of common stock at fair value


    $

    1,972,717


    $

     

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