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Senmiao Technology Reports Fiscal 2023 Year-end Financial Results

Senmiao Technology Reports Fiscal 2023 Year-end Financial Results

CHENGDU, China, July 13, 2023 /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 year ended March 31, 2023.

Fiscal 2023 Year-end Financial and Operating Highlights

  • Total revenues of $8.1 million from continuing operations, an increase of 64.5% from $4.9 million in the prior fiscal year, primarily as a result of increased operating lease revenues from automobile rentals and increased revenues from online ride-hailing platform services.
  • From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to March 31, 2023, approximately 29.6 million rides were completed (including orders completed on the platform operated by Senmiao and orders completed on partner platforms, such as Xiehua and Anma) with fares paid by riders totaling $95.6 million. As of July 12, 2023, Senmiao operated in 26 cities in China, including Chengdu, Changsha and Guangzhou.  
  • Net loss from continuing operations improved to $3.8 million, compared to net loss of $5.6 million in the prior fiscal year, primarily due to the Company's cost-cutting initiatives that directly resulted in significantly lower selling, general and administrative expenses.

Management Commentary

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We were pleased with our financial performance in fiscal 2023, reporting a 64.5% increase in total revenues to $8.1 million and gross profit of $1.5 million, compared to a gross loss of $2.1 million in the prior fiscal year. As a result of our top line growth and effective cost-cutting initiatives, we narrowed bottom-line losses by 32.4% from fiscal 2022, enabling us to achieve positive cash flow from operating activities. Our strong top-line results were driven by operating lease revenues from automobile rentals more than doubling year over year and revenues from online ride-hailing platform services growing 39.2%. We have been focusing on growing these two businesses in recent years and are confident that we will continue to see positive momentum as China has moved away from its zero-COVID policy in a post-pandemic environment. Since the launch of our online ride-hailing business in October 2020, we have helped facilitate over 31.1 million rides in 26 cities as of May 2023. We expect to continue expanding our business partnerships as we look to enter potential new markets, exploring opportunities for new partner models and strengthening our presence in our strongest markets of Chengdu, Changsha and Guangzhou."

Financial Review

Revenues

Total revenues were $8.1 million for the year ended March 31, 2023, an increase of 64.5% from $4.9 million in the prior fiscal year. The increase was mainly due to a $1.7 million increase in operating lease revenues from automobile rentals and a $1.0 million increase in revenue contributions from online ride-hailing platform services.

During the year ended March 31, 2023, the automobile rental business generated operating lease revenues of $3.5 million, an increase of 100.5% from $1.7 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 $3.7 million, an increase of 39.2% from $2.7 million in the prior fiscal year. The increase was primarily due to the significantly lower amount of incentives the Company paid to ride-hailing drivers who completed rides and earned income through its platform in the year ended March 31, 2023. 

Cost of Revenues

Cost of revenues decreased to $6.6 million for the year ended March 31, 2023, compared to $7.0 million in the prior fiscal year, primarily due to a decrease in direct expense and technical service fees for the online ride-hailing platform services business as a result of a decrease in the number of completed orders, partially offset by the increase in costs of automobiles under operating leases as a result of business expansion.

Gross Profit

Gross profit was $1.5 million for the year ended March 31, 2023, compared to gross loss of $2.1 million in the prior fiscal year. The change of $3.6 million was mainly due to the increase in profit in our online ride-hailing platform services and operating lease, partially offset by the gross loss of approximately $0.1 million from sales of automobiles. 

Selling, General and Administrative Expenses

Selling, general and administrative expenses decreased 32.0% to $6.1 million for the year ended March 31, 2023, from $9.0 million in the prior fiscal year. The decrease was mainly attributable to the Company's implementation of initiatives to streamline expenses during the period, which resulted in a $0.9 million decrease in financial, legal and marketing consulting fees, a $0.7 million decrease in salary and employee benefit expenses, a $0.8 million decrease in advertising and promotion expenses for online ride-hailing platform services, and other expense reductions.

Net Loss from Continuing Operations

As a result of the foregoing, net loss from Senmiao's continuing operations for the year ended March 31, 2023, improved to $3.8 million, compared to net loss of $5.6 million in the prior fiscal year.

Loss per Share

Loss per diluted share for continuing operations for the year ended March 31, 2023, was approximately $0.43 based on a weighted average number of basic and diluted common stock of 7.2 million, compared to loss per diluted share of approximately $1.66 based on a weighted average number of basic and diluted common stock of 5.7 million in the prior fiscal year.

Financial Position

As of March 31, 2023, Senmiao had cash and cash equivalents of $1.6 million, compared to $1.2 million as of March 31, 2022. Total stockholders' equity was $4.4 million as of March 31, 2023, compared to $8.1 million as of March 31, 2022.

Additional information regarding Senmiao's results of operations for this annual period can be found in Senmiao's Annual Report on Form 10-K for the fiscal year ended March 31, 2023, to be filed with the Securities and Exchange Commission on the date of this earnings release.

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: https://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.                                                                      In China
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

CONSOLIDATED BALANCE SHEETS

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




March 31, 


March 31, 



2023


2022







ASSETS







Current assets







Cash and cash equivalents


$

1,610,090


$

1,185,221

Accounts receivable, net, current portion



158,435



418,022

Accounts receivable, a related party



6,312



Inventories



6,678



286,488

Finance lease receivables, net, current portion



146,114



314,264

Prepayments, other receivables and other assets, net



1,438,243



2,713,208

Due from related parties, current portion, net



1,488,914



682,335

Total current assets



4,854,786



5,599,538








Property and equipment, net



3,343,457



5,658,773








Other assets







Operating lease right-of-use assets, net



121,672



109,621

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



92,916



515,906

Financing lease right-of-use assets, net



623,714



305,933

Intangible assets, net



774,324



959,551

Accounts receivable, net, noncurrent





69

Finance lease receivables, net, noncurrent



71,133



92,980

Due from a related party, noncurrent



3,640,206



6,635,746

Other non-current assets



716,407



Total other assets



6,040,372



8,619,806








Total assets


$

14,238,615


$

19,878,117








LIABILITIES, MEZZANNIE EQUITY AND EQUITY







Current liabilities







Borrowings from a financial institution


$

8,813


$

145,542

Accounts payable



183,645



14,446

Advances from customers



148,188



120,629

Accrued expenses and other liabilities



3,377,507



2,444,367

Due to related parties and affiliates



8,667



11,682

Operating lease liabilities



60,878



50,177

Operating lease liabilities - related parties



143,462



330,781

Financing lease liabilities



264,052



304,557

Derivative liabilities



501,782



2,215,204

Current liabilities - discontinued operations



487,829



528,426

Total current liabilities



5,184,823



6,165,811








Other liabilities







Operating lease liabilities, non-current



83,485



47,910

Operating lease liabilities, non-current - related parties



42,247



226,896

Financing lease liabilities, non-current



388,064



1,376

Deferred tax liability



42,930



46,386

Total other liabilities



556,726



322,568








Total liabilities



5,741,549



6,488,379

 

 

SENMIAO TECHNOLOGY LIMITED 

CONSOLIDATED BALANCE SHEETS (CONTINUED) 

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






March 31, 



March 31,




2023



2022








Commitments and contingencies














Mezzanine Equity







Series A convertible preferred stock (par value $1,000 per share, 5,000 shares authorized; 1,641
  and 5,000 shares issued and outstanding at March 31, 2023 and March 31, 2022, respectively)



269,386



820,799








Stockholders' equity







Common stock (par value $0.0001 per share, 500,000,000 shares authorized; 7,743,040 and
  6,186,783 shares issued and outstanding at March 31, 2023 and March 31, 2022, respectively)
  *



773



618

Additional paid-in capital



43,355,834



42,803,045

Accumulated deficit



(37,715,294)



(34,601,545)

Accumulated other comprehensive loss



(1,247,099)



(109,454)

Total Senmiao Technology Limited stockholders' equity



4,394,214



8,092,664








Non-controlling interests



3,833,466



4,476,275








Total equity



8,227,680



12,568,939








Total liabilities, mezzanine equity and equity


$

14,238,615


$

19,878,117














 

*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 the number of shares)





For the Year Ended
March 31,





2023



2022


Revenues








Revenues



$

7,738,394



$

4,913,102


Revenues, a related party




344,120





Total revenues




8,082,514




4,913,102












Cost of revenues










Cost of revenues




(6,080,097)




(7,001,297)


Cost of revenues, a related party




(509,904)





Total cost of revenues




(6,590,001)




(7,001,297)












Gross profit (loss)




1,492,513




(2,088,195)












Operating expenses










Selling, general and administrative expenses




(6,142,447)




(9,035,142)


Provision for doubtful accounts, net of recovery




(1,487,889)




(235,279)


Impairments of inventories




(3,085)




(60,398)


Impairments of long-lived assets and goodwill







(142,974)


Total operating expenses




(7,633,421)




(9,473,793)












Loss from operations




(6,140,908)




(11,561,988)












Other income (expense)










Other income (expense), net




664,001




(107,444)


Interest expense







(5,893)


Interest expense on finance leases




(25,675)




(55,844)


Change in fair value of derivative liabilities




1,711,889




6,951,482


Issuance cost incurred for issuing series A convertible preferred stock







(821,892)


Total other income, net




2,350,215




5,960,409












Loss before income taxes




(3,790,693)




(5,601,579)












Income tax expense







(4,566)












Net loss from continuing operations




(3,790,693)




(5,606,145)












Discontinued operations:










Loss from discontinued operations, net of applicable income taxes







(2,747,209)


Net gain from deconsolidation of VIEs - discontinued operations







10,975,101


Gain from discontinued operations







8,227,892












Net (loss) income




(3,790,693)




2,621,747












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




676,944




(3,872,645)


Net loss attributable to non-controlling interests from discontinued operations







714,274












Net loss attributable to the Company's stockholders



$

(3,113,749)



$

(536,624)












Net (loss) income



$

(3,790,693)



$

2,621,747












 

 

SENMIAO TECHNOLOGY LIMITED

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

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






For the Year Ended

March 31,





2023



2022



Other comprehensive (loss) income









     Foreign currency translation adjustment



(1,103,510)



64,470












Comprehensive income (loss)



(4,894,203)



2,686,217



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



(642,809)



3,142,520












Total comprehensive loss attributable to stockholders



(4,251,394)



(456,303)












Weighted average number of common stock











     Basic and diluted*




7,195,781




5,726,997














Earnings (loss) per share - basic and diluted*











Continuing operations



$

(0.43)



$

(1.66)



Discontinued operations







1.56



Net loss per share - basic and diluted*



$

(0.43)



$

(0.10)















 

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

 

 

 

SENMIAO TECHNOLOGY LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS

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




For the Years Ended March 31, 



2023


2022

Cash Flows from Operating Activities:







Net income (loss)


$

(3,790,693)


$

2,621,747

Net income from discontinued operations





8,227,892

Net loss from continuing operations



(3,790,693)



(5,606,145)

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







Depreciation of property and equipment



1,095,518



956,400

Stock compensation expense





653,000

Issuance cost incurred for issuing series A convertible preferred stock





821,892

Amortization of right-of-use assets



711,630



955,443

Amortization of intangible assets



184,215



160,831

Provision for doubtful accounts, net of recovery



1,487,889



235,279

Impairments of inventories



3,085



60,398

Impairments of long-lived assets and goodwill





142,974

Gain on disposal of equipment



(452,522)



Change in fair value of derivative liabilities



(1,711,889)



(6,951,482)

Change in operating assets and liabilities







Accounts receivable



224,673



4,456

Accounts receivable, a related party



(6,327)



Inventories



316,139



(260,464)

Finance lease receivables



258,932



634,103

Prepayments, other receivables and other assets



1,046,465



28,254

Accounts payable



170,703



(31,434)

Advances from customers



36,911



6,678

Accrued expenses and other liabilities



1,170,510



(377,965)

Operating lease liabilities



(53,620)



(240,051)

Operating lease liabilities - related parties



(133,782)



(228,281)

Net cash provided by (used in) operating activities from continuing operations



557,837



(9,036,114)

Net cash used in operating activities from discontinued operations





(123,167)

Net Cash Provided by (Used in) Operating Activities



557,837



(9,159,281)








Cash Flows from Investing Activities:







Purchases of property and equipment



(1,151,076)



(3,223,992)

Cash proceed from disposal of long-lived assets



1,498,024



Purchases of intangible assets



(26,420)



(141,730)

Cash released upon termination of a VIE





(193)

Net cash provided by (used in) investing activities from continuing operations



320,528



(3,365,915)

Net cash used in investing activities from discontinued operations





(111,210)

Net Cash Provided by (Used in) Investing Activities



320,528



(3,477,125)

 

 

SENMIAO TECHNOLOGY LIMITED

CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

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




For the Years Ended March 31, 



2023


2022

Cash Flows from Financing Activities:







Net proceeds from issuance of common stock in registered direct offering





5,771,053

Net proceeds from issuance of common stock upon warrants exercised





22,015

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





183,390

Repayments to related parties and affiliates





(117,761)

Repayments from related parties and affiliates



144,151



Repayments of current borrowings from financial institutions



(125,840)



(39,613)

Principal payments of finance lease liabilities



(392,145)



(433,611)

Net cash provided by (used in) financing activities from continuing operations



(373,834)



9,755,410

Net Cash Provided by (Used in) Financing Activities



(373,834)



9,755,410








Effect of exchange rate changes on cash and cash equivalents



(79,662)



(381,858)








Net increase (decrease) in cash and cash equivalents



424,869



(3,262,854)

Cash and cash equivalents, beginning of the year



1,185,221



4,448,075

Cash and cash equivalents, end of the year


$

1,610,090


$

1,185,221








Supplemental Cash Flow Information







Cash paid for interest expense


$


$

5,893

Cash paid for income tax


$


$








Non-cash Transaction in Investing and Financing Activities







Recognition of other receivables from Jinkailong upon deconsolidation


$


$

7,298,208

Recognition of right-of-use assets and lease liabilities


$

917,687


$

273,555

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


$

121,742


$

181,620

Termination of right-of use assets and lease liabilities


$

47,438


$

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


$

302,010


$

Cashless exercise of November 2021 Investor warrants into common stock


$

1,533


$

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


$


$

7,932,341

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


$


$

45,674

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


$


$

1,972,717

 

 

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