Senmiao Technology Reports Fiscal 2022 Year-end Financial Results


    CHENGDU, China, July 15, 2022 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao" or the "Company") (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 year ended March 31, 2022.

    Please note that the following financial results reflect the deconsolidation of the financial figures of Senmiao's former variable interest entities ("VIEs") Sichuan Senmiao Ronglian Technology Co., Ltd. ("Sichuan Senmiao"), Sichuan Jinkailong Automobile Leasing Co., Ltd. ("Jinkailong") and Chengdu Youlu Technology Ltd. ("Youlu"), as of March 31, 2022. Jinkailong's and Youlu's business results have now been classified as discontinued operations but were previously classified under Automobile Transaction and Related Services.

    Fiscal 2022 Financial and Operating Highlights

    • Total revenues of $4.9 million from continuing operations, a 124.5% increase from $2.2 million in the prior fiscal year
    • From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to March 31, 2022, approximately 20 million rides were completed through the platform (including orders completed on the platform operated by Senmiao and orders completed on partner platforms, such as Meituan) with fares paid by riders totaling $63.3 million.
    • Net loss from continuing operations of $5.6 million, compared to $7.5 million in the prior fiscal year

    Management Commentary

    Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "Despite ongoing challenges presented by the pandemic environment in China, we are pleased with the significant growth we have achieved in our automobile transaction and related service and online ride-hailing platform services businesses, which drove our impressive top line results for fiscal year 2022. With our equity investee company, we leased a total of over 2,300 vehicles in fiscal 2022, compared to 1,200 in fiscal 2021, which resulted in a 666% year-over-year increase in rental income. We believe our continuous efforts in shifting our business focus to these new lines of business have begun to exhibit remarkable results, and we are optimistic about their future growth potential, which will continue to fuel top line growth for Senmiao as we continue to explore new regional markets. As of March 31, 2022, our platform has helped facilitate approximately 17 million rides since launch, with an additional 3 million rides completed on our partners' platforms. Our ride-hailing services are now available in 20+ cities throughout China."

    Mr. Wen continued, "During fiscal year 2022, Senmiao strengthened our partnership base, establishing and expanding upon relationships with companies that possess a significant national presence and the resources to help us enter new local regions. This has enabled us to significantly grow our main businesses. We believe we are in a strong position to continue growing our online ride-hailing platform, which we anticipate will have a positive impact on our auto rental business as our replicable model of offering a flexible automobile rental option has been well received by our online ride-hailing drivers. With that in mind, Senmiao plans to provide a series of product solutions to increase the number of our automobiles for operating leases. We will remain focused on becoming a leading financing and servicing company and a significant player in the online ride-hailing market in China."

    Financial Review

    Revenues

    Total revenues from continuing operations were $4.9 million for the year ended March 31, 2022, a 124.5% increase from $2.2 million in the prior fiscal year. This increase was largely due to increased contributions from operating lease revenues from automobile rentals and online ride-hailing platform services.

    During the year ended March 31, 2022, Senmiao continued to shift its business focus to automobile rental options for ride-hailing drivers while developing its online ride-hailing platform services business. As a result, the automobile rental business generated operating lease revenues of $1.7 million for the year ended March 31, 2022, compared to $0.2 million in the prior fiscal year, due to a significant increase in the number of automobiles leased. The online ride-hailing platform services business generated revenues of $2.7 million, a 195.1% increase from $0.9 million in the prior fiscal year.

    Cost of Revenues

    Cost of revenues from continuing operations increased to $6.5 million for the year ended March 31, 2022, from $2.0 million in the prior fiscal year, primarily due to increased expenses related to costs of automobiles under operating leases and direct expense and technical service fees related to Senmiao's online ride-hailing platform.

    Gross Loss (Profit)

    Gross loss from continuing operations was $1.6 million for the year ended March 31, 2022, compared to gross profit from continuing operations of $0.2 million in the prior fiscal year, due to the significant increase in cost of revenues as a result of the rapid expansion of the Company's automobile leasing and online ride-hailing platform services businesses. Senmiao leased and sub-leased approximately 400 automobiles to online ride-haling drivers through its former VIE Jinkailong during the year ended March 31, 2022. Rental income of approximately $1.3 million from Jinkailong was eliminated in the consolidated financial statements while sub-leasing income from these automobiles of approximately $1.8 million was recorded in loss of discontinued operations.

    Selling, General and Administrative Expenses

    Selling, general and administrative expenses for continuing operations increased to $9.5 million for the year ended March 31, 2022, compared to $5.9 million in the prior fiscal year. The increase was primarily due to increased salary and employee benefit expenses as a result of hiring additional staff, increased office rental expense and charges, and increase in advertising and promotion expenses related to the online ride-hailing platform.

    Net Loss

    Net loss from continuing operations for the year ended March 31, 2022, was $5.6 million, compared to $7.5 million in the prior fiscal year. The year-over-year improvement was primarily due to an $8.7 million increase in the fair value change of derivative liabilities related to warrants issued in the Company's previous offerings, offset by the increase in the loss from operations of $5.6 million.

    Loss per Share

    Loss per share for continuing operations was approximately $1.66 based on a weighted average number of basic and diluted common stock of 5.7 million, compared to approximately $1.65 based on a weighted average number of basic and diluted common stock of 3.9 million.

    On April 5, 2022, Senmiao announced a 1-for-10 reverse stock split with trading to begin on a split-adjusted basis at the market open on April 6, 2022. Weighted average number of basic and diluted common stock numbers noted herein were given retroactive effect to account for the 1-for-10 reverse stock split. 

    Results from Discontinued Operations

    For the year ended March 31, 2022, results from discontinued operations (primarily from Senmiao's former VIE Jinkailong as noted above) and the gain from their deconsolidation are as follows:


    For the year ended March 31,


    2022

    2021

    Revenues

    $6,830,116

    $3,978,847

    Cost of revenues

    $(5,183,806)

    $(3,985,413)

    Gross profit (loss)

    $1,646,310

    $(6,566)

    Selling, general and administrative expenses

    $(4,139,800)

    $(4,455,967)

    Loss from discontinued operations, net of applicable income taxes

    $(2,747,209)

    $(5,187,214)

    Net gain from deconsolidation of VIEs - discontinued operations

    $10,975,101

    -

    Gain (loss) from discontinued operations

    $8,227,892

    $(5,187,214)

    Financial Position

    As of March 31, 2022, Senmiao had cash and cash equivalents of $1.2 million, compared to $4.3 million as of March 31, 2021, for its continuing operations. Total stockholders' equity was $8.1 million as of March 31, 2022, compared to $5.9 million as of March 31, 2021.

    Further information regarding Senmiao's results of operations for the fiscal year ended March 31, 2022, can be found in Senmiao's Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission today.

    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 and 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. 
    Carolyne Sohn, Vice President
    +1 415-568-2255
    csohn@equityny.com                                                                      

    In China
    Lucy Ma, Associate
    +86 10 5661 7012
     lma@equityny.com 

    © 2022 Senmiao Technology Ltd. All rights reserved.

     

    SENMIAO TECHNOLOGY LIMITED

    CONSOLIDATED BALANCE SHEETS

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




    March 31,



    March 31,




    2022



    2021


    ASSETS









    Current assets









    Cash, and cash equivalents


    $

    1,185,221



    $

    4,340,529


    Accounts receivable, net, current portion



    418,022




    502,031


    Inventories



    286,488




    127,933


    Finance lease receivables, net, current portion



    314,264




    541,605


    Prepayments, other receivables and other assets, net



    2,713,208




    2,660,083


    Due from related parties



    682,335





    Current assets - discontinued operations






    2,720,825


    Total current assets



    5,599,538




    10,893,006











    Property and equipment, net









    Property and equipment, net



    5,658,773




    3,251,331


    Property and equipment, net - discontinued operations






    454,408


    Total property and equipment, net



    5,658,773




    3,705,739











    Other assets









    Operating lease right-of-use assets, net



    109,621




    233,751


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



    515,906




    580,367


    Financing lease right-of-use assets, net



    305,933




    577,079


    Intangible assets, net



    959,551




    968,131


    Goodwill






    135,388


    Accounts receivable, net, non-current



    69




    61,943


    Finance lease receivables, net, non-current



    92,980




    473,472


    Due from a related party, noncurrent



    6,635,746





    Other assets - discontinued operations






    4,674,403


    Total other assets



    8,619,806




    7,704,534











    Total assets


    $

    19,878,117



    $

    22,303,279











    LIABILITIES, MEZZANINE EQUITY AND EQUITY









    Current liabilities









    Borrowings from financial institutions


    $

    145,542



    $


    Accounts payable



    14,446




    44,769


    Advances from customers



    120,629




    110,173


    Accrued expenses and other liabilities



    2,444,367




    2,873,227


    Due to related parties and affiliates



    11,682




    82,909


    Operating lease liabilities



    50,177




    109,813


    Operating lease liabilities - related parties



    330,781




    243,726


    Financing lease liabilities



    304,557




    358,135


    Derivative liabilities



    2,215,204




    1,278,926


    Current liabilities - discontinued operations



    528,426




    11,677,266


    Total current liabilities



    6,165,811




    16,778,944











    Other liabilities









    Operating lease liabilities, non-current



    47,910




    95,886


    Operating lease liabilities, non-current - related parties



    226,896




    341,549


    Financing lease liabilities, non-current



    1,376




    218,944


    Deferred tax liability



    46,386




    44,993


    Other liabilities - discontinued operations






    2,250,393


    Total other liabilities



    322,568




    2,951,765


     

    SENMIAO TECHNOLOGY LIMITED

    CONSOLIDATED BALANCE SHEETS (CONTINUED)

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





    March 31,

    2022




    March 31,

    2021











    Total liabilities


    $

    6,488,379



    $

    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 March 31, 2022 and 2021, respectively), net of issuance costs of
    $118,344



    820,799














    Stockholders' equity









    Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783
    and 4,978,073 shares issued and outstanding at March 31, 2022 and 2021, respectively)*



    630




    498


    Additional paid-in capital



    42,803,033




    40,759,807


    Accumulated deficit



    (34,601,545)




    (34,064,921)


    Accumulated other comprehensive loss



    (109,454)




    (838,671)


    Total Senmiao Technology Limited stockholders' equity



    8,092,664




    5,856,713











    Non-controlling interests



    4,476,276




    (3,284,143)











    Total equity



    12,568,939




    2,572,570











    Total liabilities and equity


    $

    19,878,117



    $

    22,303,279


     *Giving retroactive effect to the 1-for-10 reverse stock split effected on April 6, 2022

     

    SENMIAO TECHNOLOGY LIMITED

    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

    (Expressed in U.S. dollars, except for share and per share amounts)





    For the Year Ended
    March 31,





    2022



    2021


    Revenues



    $

    4,913,102



    $

    2,188,840


    Cost of revenues




    (6,511,031)




    (1,984,079)


    Gross profit (loss)




    (1,597,929)




    204,761












    Operating expenses










    Selling, general and administrative expenses




    (9,525,408)




    (5,905,579)


    Provision for doubtful accounts, net of recovery




    (235,279)




    (299,658)


    Impairments of inventories




    (60,398)





    Impairments of long-lived assets and goodwill




    (142,974)




    (10,953)


    Total operating expenses




    (9,964,059)




    (6,216,190)












    Loss from operations




    (11,561,988)




    (6,011,429)












    Other income (expense)










    Other income (expense), net




    (107,444)




    301,269


    Interest expense




    (5,893)





    Interest expense on finance leases




    (55,844)




    (46,518)


    Change in fair value of derivative liabilities




    6,951,482




    (1,710,415)


    Issuance cost incurred for issuing series A convertible preferred stock




    (821,892)





    Total other income (expense), net




    5,960,409




    (1,455,664)












    Loss before income taxes




    (5,601,579)




    (7,467,093)












    Income tax expense




    (4,566)




    (8,332)












    Net loss from continuing operations




    (5,606,145)




    (7,475,425)












    Discontinued operations:










    Loss from discontinued operations, net of applicable income taxes




    (2,747,209)




    (5,187,214)


    Net gain from deconsolidation of VIEs - discontinued operations




    10,975,101





    Gain (loss) from discontinued operations




    8,227,892




    (5,187,214)












    Net income (loss)




    2,621,747




    (12,662,639












    Net (income) loss attributable to non-controlling interests from continuing operations




    (3,872,645)




    970,019


    Net loss attributable to non-controlling interests from discontinued operations




    714,274




    1,332,562












    Net loss attributable to stockholders



    $

    (536,624)



    $

    (10,360,058)












    Net income (loss)



    $

    2,621,747



    $

    (12,662,639)












    Other comprehensive income (loss)










    Foreign currency translation adjustment




    64,470




    (314,669)












    Comprehensive income (loss)




    2,686,217




    (12,977,308)


    Less: Total comprehensive income (loss) attributable to noncontrolling interests




    3,142,520




    (2,286,057)












    Total comprehensive loss attributable to stockholders



    $

    (456,303)



    $

    (10,691,251)


     

    SENMIAO TECHNOLOGY LIMITED

    CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (CONTINUED)

    (Expressed in U.S. dollars, except for share and per share amounts)





    For the Year Ended

    March 31,





    2022



    2021



    Weighted average number of common stock











         Basic and diluted




    5,726,997




    3,943,089














    Earnings (loss) per share - basic and diluted











    Continuing operations



    $

    (1.66)



    $

    (1.65)



    Discontinued operations



    $

    1.56



    $

    (0.98)















     

    SENMIAO TECHNOLOGY LIMITED

    CONSOLIDATED STATEMENTS OF CASH FLOWS

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




    For the Year Ended
    March 31,




    2022



    2021


    Cash Flows from Operating Activities:









    Net income (loss)


    $

    2,621,747



    $

    (12,662,639)


    Net income (loss) from discontinued operations



    8,227,892




    (5,187,214)


    Net loss from continuing operations



    (5,606,145)




    (7,475,425)


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









    Depreciation and amortization of property and equipment



    956,400




    85,530


    Stock based compensation expense



    653,000




    445,000


    Issuance cost incurred for issuing series A convertible preferred stock



    821,892




    -


    Amortization of right-of-use assets



    955,443




    398,292


    Amortization of intangible assets



    160,831




    107,765


    Provision for doubtful accounts, net of recovery



    235,279




    299,658


    Impairments of inventories



    60,398




    -


    Impairments of long-lived assets



    142,974




    10,953


    Gain on disposal of equipment



    -




    (425)


    Change in fair value of derivative liabilities



    (6,951,482)




    1,710,415


    Change in operating assets and liabilities









    Accounts receivable



    4,456




    162,828


    Inventories



    (260,464)




    172,626


    Prepayments, other receivables and other assets



    28,254




    (1,366,724)


    Finance lease receivables



    634,103




    348,919


    Accounts payable



    (31,434)




    (6,067)


    Advances from customers



    6,678




    47,895


    Income tax payable



    -




    (168)


    Accrued expenses and other liabilities



    (377,965)




    2,123,010


    Operating lease liabilities



    (240,051)




    (64,701)


    Operating lease liabilities - related parties



    (228,281)




    (195,519)


    Net cash used in operating activities from continuing operations



    (9,036,114)




    (3,196,138)


    Net cash used in operating activities from discontinued operations



    (123,167)




    (739,929)


    Net Cash used in Operating Activities



    (9,159,281)




    (3,936,067)











    Cash Flows from Investing Activities:









    Purchases of property and equipment



    (3,223,992)




    (2,293,415)


    Purchases of intangible assets



    (141,730)




    (25,347)


    Cash released upon termination of a VIE



    (193)




    -


    Cash acquired from XXTX, net of cash paid to XXTX[1]



    -




    8,065


    Net cash used in investing activities from continuing operations



    (3,365,915)




    (2,310,697)


    Net cash used in investing activities from discontinued operations



    (111,210)




    (200,165)


    Net Cash Used in Investing Activities



    (3,477,125)




    (2,510,862)











    Cash Flows from Financing Activities:









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



    5,771,053




    5,743,905


    Net proceeds from issuance of common stock and warrants in an underwritten public
    offering



    -




    5,261,297


    Net proceeds from issuance of common stock upon warrants exercised



    22,015




    683,046


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



    4,369,937




    -


    Net proceeds from exercise of underwriters' over-allotment option



    -




    837,000


    Borrowings from a financial institution



    183,390




    -


    Loan to related parties



    -




    (101,142)


     

    SENMIAO TECHNOLOGY LIMITED

    CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

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





    For the Year Ended
    March 31,





    2021



    2020











    Repayments to related parties and affiliates



    (117,761)




    (37,445)


    Repayments of current borrowings from financial institutions



    (39,613)




    -


    Principal payments of finance lease liabilities



    (433,611)




    (2,230,765)


    Net cash provided by financing activities from continuing operations



    9,755,410




    10,155,896


    Net cash provided by financing activities from discontinued operations



    -




    103,881


                             Net Cash Provided by Financing Activities



    9,755,410




    10,259,777











    Effect of exchange rate changes on cash and cash equivalents



    (381,858)




    (208,800)











    Net (decrease) increase in cash and cash equivalents



    (3,262,854)




    3,604,048


    Cash and cash equivalents, beginning of year



    4,448,075




    844,027


    Cash and cash equivalents, end of year



    1,185,221




    4,448,075











    Less: Cash and cash equivalents from discontinued operations



    -




    (107,546)











    Cash and cash equivalents from continuing operations, end of year


    $

    1,185,221



    $

    4,340,529











    Supplemental Cash Flow Information









    Cash paid for interest expense


    $

    5,893



    $

    45,764


    Non-cash Transaction in Investing and Financing Activities









    Recognition of right-of-use assets and lease liabilities


    $

    273,555



    $

    3,785,526


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


    $

    181,620



    $

    -


    Recognition of other receivables from Jinkailong upon deconsolidation


    $

    7,298,208




    -


    Acquisition of equipment through prepayment and financing lease


    $

    -



    $

    941,263


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


    $

    7,932,341



    $

    997,193


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


    $

    45,674



    $

    1,771,213


    Acquisition of XXTX with payables


    $

    -



    $

    317,835


    Acquisition of XXTX's minority interest with issuance of common stock


    $

    1,972,717



    $

    -


    [1] XXTX is the entity associated with Senmiao's Xixingtianxia ride-hailing platform.

     

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