CHENGDU, China, Aug. 15, 2019 /PRNewswire/ -- Senmiao Technology Limited (NASDAQ: AIHS) ("Senmiao"), a provider of automobile transaction and related services and an operator of an online lending marketplace connecting Chinese investors with individual and small-to-medium-sized enterprise borrowers in China, today announced its unaudited financial results for the quarter ended June 30, 2019.
First Quarter of Fiscal 2020 Highlights
"We had a great start to our fiscal year 2020 with a strong performance from our automobile transaction and related services business during the first quarter. Thanks to the Ruixi acquisition that gave us a unique opportunity to capitalize on the growing ride-sharing market in 2nd and 3rd tier cities in China, like Chengdu and Changsha, we are very pleased with the continued momentum in automobile transaction and related services," commented Xi Wen, Chairman, Chief Executive Officer and President of Senmiao. "With revenues more than doubled and turning a profit from the prior quarter, our automobile transaction and related services continued to drive the overall growth of both top- and bottom-lines of the Company and our strategic transformation from a single revenue stream online lending marketplace to a more diversified financial services company. We are optimistic about the growth prospects of our business and looking forward to improving financial performances in coming quarters."
Revenues
Total revenues were $5,094,440 for the quarter ended June 30, 2019, an increase of $4,969,414, or 3,975% as compared with the quarter ended June 30, 2018, primarily due to Senmiao's significant ramp up of its automobile transaction and related services business.
Revenue from automobile transaction and related services was $5,012,563, accounting for 98.4% of total revenue. This compares with $2,432,371 in the fourth quarter of the previous year when Senmiao commenced its automobile transaction and related services business in late November 2018.
Revenue from online lending services decreased by $43,149 during the quarter ended June 30, 2019, as compared to the quarter ended June 30, 2018, as Senmiao continued to focus on its compliance review and did not actively seek to expand its online lending business. Revenue from online lending services accounted for 1.6% of total revenue, down from 100.0% a year ago.
Cost of Revenues
Cost of revenues was $4,022,312 for the quarter ended June 30, 2019. Senmiao did not incur cost of revenues during the same period last year as it only provided online lending services which did not incur any cost of revenues.
Gross Profit
Gross profit was $1,072,128 for the quarter ended June 30, 2019 compared to $125,026 during the same period last year mainly due to the increase in gross profit of $990,251 from automobile transaction and related services, partially offset by a decrease of $43,149 from online lending services.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $1,453,074 for the quarter ended June 30, 2019 compared to $972,269 during the same period last year, an increase of 49.5%. The increase was attributable to the selling, general and administrative expenses of $573,692 incurred by the automobile transaction and related services.
Net Loss
Net loss for the quarter ended June 30, 2019 was $505,432, compared to a net loss of $930,364 during the same period last year.
Senmiao achieved a net income of $290,351 from its automobile transaction and related services and a net loss of $453,270 from its online lending services for the quarter ended June 30, 2019.
Financial Position
As of June 30, 2019, Senmiao had cash and cash equivalents of $5,438,125 as compared to $5,020,510 as of March 31, 2019.
Recent Developments
On June 21, 2019, Senmiao closed a registered direct public offering of common stock and warrants pursuant to its registration statement on Form S-3, as supplemented, for total gross proceeds of $6.0 million. The offering price of the shares sold in the offering was $3.38 per share. After deducting placement agent fees and offering expenses, the aggregate net proceeds received by Senmiao totaled approximately $5.1 million.
About Senmiao
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, guarantee and other automobile transaction services. Senmiao also operates an online lending platform, which connects Chinese investors with individual and small-to-medium-sized enterprise borrowers. For more information about Senmiao, please visit: http://www.senmiaotech.com.
Cautionary Note Regarding Forward-Looking Statements
This press release of Senmiao contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the development of Senmiao's automobile transaction and related services and online lending services, the Chinese ride-sharing and automobile financial leasing markets, the Chinese online marketplace lending industry and Senmiao's plans, objectives, goals, strategies, and performance, as well as the assumptions such statements and other statements that are not statements of historical facts. When Senmiao uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially from Senmiao's expectations, including, but not limited to, risks and uncertainties relating to the following: the risk that the anticipated growth of Senmiao's automobile transaction and related services may not be realized; Senmiao's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; the impact of government regulations; fluctuations in general economic and business conditions in China and other risks expressed in reports filed by Senmiao with the U.S. Securities and Exchange Commission. For these reasons, among others, investors are cautioned not to place undue reliance on any forward-looking statements. Senmiao's filings with the U.S. Securities and Exchange Commission are available for review at www.sec.gov. 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:
Julie Zhu
Email: julie@ihongsen.com
Phone: +86 181-9085-0098
Investor Relations:
Linda Bergkamp
Christensen
Email: lbergkamp@ChristensenIR.com
Phone: +1 480 614 3004
SENMIAO TECHNOLOGY LIMITED |
|||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(Expressed in U.S. dollar, except for the number of shares) |
|||||||
June 30, |
March 31, |
||||||
2019 |
2019 |
||||||
(Unaudited) |
|||||||
ASSETS |
|||||||
Current Assets |
|||||||
Cash and cash equivalents |
$ |
5,438,125 |
$ |
5,020,510 |
|||
Accounts receivable, net |
1,849,418 |
326,181 |
|||||
Inventories |
2,536,026 |
1,508,244 |
|||||
Finance lease receivables, net, current portion |
270,156 |
10,254 |
|||||
Prepayments, receivables and other assets, net |
4,164,628 |
3,793,468 |
|||||
Escrow receivable due within one year |
600,000 |
600,000 |
|||||
Due from related parties |
150,595 |
140,498 |
|||||
Total Current Assets |
15,008,948 |
11,399,155 |
|||||
Property and equipment, net |
470,408 |
125,885 |
|||||
Other Assets |
|||||||
Right-of-use assets |
342,549 |
- |
|||||
Intangible assets, net |
315,130 |
296,091 |
|||||
Prepayment for intangible assets |
745,628 |
470,706 |
|||||
Accounts receivable |
389,980 |
- |
|||||
Finance lease receivables, net |
581,980 |
22,298 |
|||||
Total Other Assets |
2,375,267 |
789,095 |
|||||
Total Assets |
$ |
17,854,623 |
$ |
12,314,135 |
|||
LIABILITIES AND EQUITY |
|||||||
Current Liabilities |
|||||||
Borrowings from financial institutions |
$ |
214,213 |
$ |
219,157 |
|||
Borrowings from third parties |
145,628 |
476,765 |
|||||
Accounts payable |
446,109 |
- |
|||||
Advance from customers |
106,796 |
38,996 |
|||||
Income tax payable |
117,400 |
21,905 |
|||||
Accrued expenses and other liabilities |
1,857,802 |
1,500,803 |
|||||
Due to stockholders |
1,031,159 |
1,080,047 |
|||||
Due to related parties and affiliates |
551,962 |
415,931 |
|||||
Lease liabilities |
191,340 |
- |
|||||
Derivative liabilities |
4,156,147 |
- |
|||||
Total Current Liabilities |
8,818,556 |
3,753,604 |
|||||
Other Liabilities |
|||||||
Borrowings from financial institutions, noncurrent |
126,375 |
177,789 |
|||||
Lease liabilities, non current |
129,232 |
- |
|||||
Total Other Liabilities |
255,607 |
177,789 |
|||||
Total liabilities |
9,074,163 |
3,931,393 |
|||||
Commitments and Contingencies |
|||||||
Stockholders' Equity |
|||||||
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 27,726,616 and 25,945,255 shares issued and outstanding at June 30, 2019 and March 31, 2019, respectively) |
2,773 |
2,595 |
|||||
Additional paid-in capital |
24,822,307 |
23,833,112 |
|||||
Accumulated deficit |
(15,609,898) |
(15,031,538) |
|||||
Accumulated other comprehensive loss |
(486,718) |
(428,771) |
|||||
Total Stockholders' Equity |
8,728,464 |
8,375,398 |
|||||
Noncontrolling interests |
51,996 |
7,344 |
|||||
Total Equity |
8,780,460 |
8,382,742 |
|||||
Total Liabilities and Equity |
$ |
17,854,623 |
$ |
12,314,135 |
|||
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 June 30 |
||||||
2019 |
2018 |
|||||
(Unaudited) |
(Unaudited) |
|||||
Revenues |
$ |
5,094,440 |
$ |
125,026 |
||
Cost of revenues |
(4,022,312) |
- |
||||
Gross profit |
1,072,128 |
125,026 |
||||
Operating expenses |
||||||
Selling, general and administrative expenses |
(1,453,074) |
(972,269) |
||||
Amortization of intangible assets |
(15,152) |
(86,297) |
||||
Total operating expenses |
(1,468,226) |
(1,058,566) |
||||
Loss from operations |
(396,098) |
(933,540) |
||||
Other income (expense) |
||||||
Other (expense) income, net |
32,242 |
3,176 |
||||
Interest expense |
(37,039) |
- |
||||
Change in fair value of derivative liabilities |
(3,396) |
- |
||||
Total other income (expense), net |
(8,193) |
3,176 |
||||
Loss before income taxes |
(404,291) |
(930,364) |
||||
Income tax expenses |
(101,141) |
- |
||||
Net loss |
(505,432) |
(930,364) |
||||
Less: Net income attributable to noncontrollling interests |
(72,928) |
- |
||||
Net loss attributable to stockholders |
$ |
(578,360) |
$ |
(930,364) |
||
Net loss |
$ |
(505,432) |
$ |
(930,364) |
||
Other comprehensive loss |
||||||
Foreign currency translation adjustment |
(86,223) |
(48,735) |
||||
Comprehensive loss |
(591,655) |
(979,099) |
||||
Less: Total comprehensive income attributable to noncontrolling interests |
44,652 |
- |
||||
Total comprehensive loss attributable to stockholders |
$ |
(636,307) |
$ |
(979,099) |
||
Weighted average number of common stock |
||||||
Basic and diluted |
26,121,433 |
25,879,400 |
||||
Loss per share |
||||||
Basic and diluted |
$ |
(0.02) |
$ |
(0.04) |
||
SENMIAO TECHNOLOGY LIMITED |
||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Expressed in U.S. dollar, except for the number of shares) |
||||||||
For the Three months ended June 30, |
||||||||
2019 |
2018 |
|||||||
(Unaudited) |
(Unaudited) |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net loss |
$ |
(505,432) |
$ |
(930,364) |
||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization of property and equipment |
25,522 |
1,882 |
||||||
Amortization of right-of-use assets |
41,326 |
|||||||
Amortization of intangible assets |
15,152 |
86,297 |
||||||
Provision for doubtful accounts |
31,638 |
- |
||||||
Change in fair value of derivative liabilities |
3,396 |
- |
||||||
Change in operating assets and liabilities |
||||||||
Accounts receivable |
(1,949,620) |
(44,967) |
||||||
Inventories |
(1,068,512) |
- |
||||||
Prepayments, receivables and other assets |
(475,354) |
24,241 |
||||||
Finance lease receivables |
(825,500) |
- |
||||||
Accounts payable |
448,927 |
- |
||||||
Advances from customers |
69,114 |
- |
||||||
Income tax payable |
96,593 |
- |
||||||
Accrued expenses and other liabilities |
389,180 |
(54,959) |
||||||
Lease liabilities |
(58,238) |
- |
||||||
Net Cash Used in Operating Activities |
(3,761,808) |
(917,870) |
||||||
Cash Flows from Investing Activities: |
||||||||
Purchases of property and equipment |
(375,077) |
(11,918) |
||||||
Purchase of intangible assets |
- |
(21,951) |
||||||
Prepayment of intangible assets |
(320,000) |
- |
||||||
Net Cash Used in Investing Activities |
(695,077) |
(33,869) |
||||||
Cash Flows from Financing Activities: |
||||||||
Net proceeds from issuance of common stock in registered direct offering |
5,142,124 |
- |
||||||
Proceeds borrowed from stockholders |
- |
605,056 |
||||||
Repayments to stockholders |
- |
(500,784) |
||||||
Borrowings from third parties |
(322,406) |
- |
||||||
Borrowings from related parties and affiliates |
168,898 |
- |
||||||
Repayments of current borrowings from financial institutions |
(47,703) |
- |
||||||
Net Cash Provided by Financing Activities |
4,940,913 |
104,272 |
||||||
Effect of exchange rate changes on cash and cash equivalents |
(66,413) |
(42,412) |
||||||
Net increase (decrease) in cash and cash equivalents |
417,615 |
(889,879) |
||||||
Cash and cash equivalents, beginning of period |
5,020,510 |
11,141,566 |
||||||
Cash and cash equivalents, end of period |
$ |
5,438,125 |
$ |
10,251,687 |
||||
Supplemental Cash Flow Information |
||||||||
Cash paid for interest expense |
$ |
37,039 |
$ |
- |
||||
Cash paid for income tax |
$ |
- |
$ |
- |
||||
Non-cash Transaction in Investing and Financing Activities |
||||||||
Unpaid property and equipment purchases |
$ |
- |
$ |
6,526 |
||||
IPO expenses paid by the Company's stockholders |
$ |
- |
$ |
70,687 |
||||
Right-of-use assets obtained in exchange of operating lease liabilities |
$ |
386,039 |
$ |
- |
||||
Intangible assets received from prepayment |
$ |
41,033 |
$ |
- |
||||
Allocation of fair value of derivative liabilities from issuance of common stock proceeds |
$ |
4,152,751 |
$ |
- |
||||
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