omniture

Senmiao Technology Reports Fiscal 2022 First Quarter Financial Results

2021-08-17 04:30 5000

CHENGDU, China, Aug. 17, 2021 /PRNewswire/ -- Senmiao Technology Limited ("Senmiao") (NASDAQ: AIHS), a provider of automobile transaction and related services targeting the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced financial results for its fiscal 2022 first quarter ended June 30, 2021.

Fiscal 2022 First Quarter Financial and Operating Highlights

  • Total revenues of $1.9 million, an increase of approximately 61% from $1.1 million in the prior-year period, primarily as a result of increased operating lease revenues from automobile rentals as Senmiao has shifted its focus to this business in direct response to the COVID-19 pandemic.
  • Net loss from continuing operations of $7.4 million, compared with $2.3 million from the prior-year period, primarily due to increased cost of revenue, operating expenses and other expense related to the development and services provided on Senmiao's new online ride-hailing platform.
  • From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to June 30, 2021, 10.5 million rides were completed through the platform with fares paid by riders totaling $31.4 million.

Management Commentary

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "Our online ride-hailing platform continued to ramp its growth since its launch in last October. We achieved 61% growth on the top line during the fiscal 2022 first quarter, primarily driven by increased operating lease revenues from automobile rentals, which accounted for the majority of our total revenues. During the period, we were pleased to see the public health situation continue to improve in a post-pandemic recovery. We anticipate operating lease revenues from automobile rentals will continue to account for most of our revenues with our online ride-hailing platform services making steady contributions over the next 12 months."

Mr. Wen continued, "We feel there is a natural symmetry where Senmiao can leverage our online ride-hailing platform and improve utilization of automobiles under our operating leases. This year, we launched the platform in Guangzhou, China's third-largest city, in late March, as well as in the smaller cities of Nanchong and Panzhihua in June. As a result of our expansions into new cities and valued partnerships, approximately 6 million rides have been completed using Senmiao's platform, generating gross fares of approximately $18 million, during the three months ended June 30, 2021."

"We remain confident in the long-term prospects of the online ride-hailing industry despite some setbacks caused by recent COVID-19 resurgences in Guangzhou and Chengdu, which resulted in local governments implementing travel restrictions and lockdowns. We continue to deepen our relationships with our key industry partners and anticipate further expansion into more cities in China this year. We believe the acceleration of our platform's growth will benefit the automobile rentals business as more individuals look to transition into ride-hailing as a profession. We look forward to supporting a growing population of ride-hailing drivers as the industry continues to expand across the country."

Financial Review

Revenues

Total revenues were $1.9 million for the fiscal first quarter ended June 30, 2021, an increase of 61% from $1.1 million in the prior-year period. The increase was largely due to increased operating lease revenues from Senmiao's automobile rental business, which was partially offset by lack of revenue contributions from automobile sales and facilitation of automobile transaction and financing during the period.

Cost of Revenues

Cost of revenues increased to $3.8 million for the fiscal first quarter ended June 30, 2021, compared to $0.8 million in the prior fiscal year, primarily due to a $1.4 million increase in cost of automobiles under operating leases and a $1.9 million increase in direct expense and technical service fees related to Senmiao's online ride-hailing platform, as a result of the commencement and expansion of those two businesses.

Gross Profit (Loss)

Gross loss was $1.9 million for the fiscal first quarter ended June 30, 2021, compared to gross profit of $0.3 million in the prior-year period, due to the decreased number of automobiles sold and facilitated new automobile purchases. Senmiao has focused on operating leases to mitigate the impact of the return of automobiles by a substantial number of drivers and the intense competition in the online ride-hailing market in Chengdu and Changsha since 2020. As noted above, Senmiao incurred increased cost of revenues related to the launch of its online ride-hailing platform. It also paid additional cash incentives to attract drivers to its platform.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased to $3.7 million for the fiscal first quarter ended June 30, 2021, compared to $2.0 million in the prior-year period. The increase was mainly attributable to a $0.7 million increase in salary and employee benefits as Senmiao's employee headcount increased from 179 to 347, a $0.8 million increase in advertising and promotion expenses for online ride-hailing platform services, and a $0.4 million increase for office expenses, professional service fees such as financial, legal and market consulting, and other miscellaneous expenses, partially offset by a $0.3 million decrease in amortization of automobiles that were rendered to Senmiao but 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 first quarter ended June 30, 2021, was $7.4 million, compared to $2.3 million in the prior-year period, which was primarily the result of the increased cost of revenues and increased selling, general and administrative expenses mentioned above, as well as a $1.1 million decrease in change in fair value of derivative liabilities related to warrants issued in Senmiao's most recent registered direct offering.

Loss per Share

Loss per share for continuing operations was approximately $0.12 based on a weighted average number of basic and diluted common stock of 52.7 million, compared to approximately $0.07 based on a weighted average number of basic and diluted common stock of 29.0 million.

Financial Position

As of June 30, 2021, Senmiao had cash and cash equivalents of $4.0 million, compared to $4.4 million as of March 31, 2021. The Company's business is capital intensive, and management is taking steps to alleviate the working capital deficit.

Further information regarding Senmiao's results of operations for the quarter ended June 30, 2021 can be found in Senmiao's website, which will be filed with the Securities and Exchange Commission.

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. The Company routinely provides important information 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 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. 
Adam Prior, Senior Vice President
(212) 836-9606
aprior@equityny.com 

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

© 2021 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)











June 30, 2021


March 31, 2021



(Unaudited)




ASSETS







Current assets







Cash, and cash equivalents


$

4,037,518


$

4,448,075

Accounts receivable, net, current portion



1,284,226



1,437,195

Inventories



255,954



127,933

Finance lease receivables, net, current portion



501,482



541,605

Prepayments, other receivables and other assets, net



4,560,491



3,905,278

Due from related parties



38,333



39,572

Current assets - discontinued operations



54,255



393,348

Total current assets



10,732,259



10,893,006








Property and equipment, net







Property and equipment, net



5,574,939



3,700,147

Property and equipment, net - discontinued operations





5,592

Total property and equipment, net



5,574,939



3,705,739








Other assets














Operating lease right-of-use assets, net



452,035



499,221

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



718,804



580,367

Financing lease right-of-use assets, net



3,889,841



4,778,772

Intangible assets, net



935,122



968,131

Goodwill





135,388

Accounts receivable, net, noncurrent



111,591



269,183

Finance lease receivables, net, noncurrent



337,885



473,472

Total other assets



6,445,278



7,704,534








Total assets


$

22,752,476


$

22,303,279








LIABILITIES AND EQUITY DEFICIENCY







Current liabilities







Borrowings from financial institutions


$

451,742


$

310,662

Accounts payable



184,113



44,769

Advances from customers



154,779



155,586

Income tax payable



17,666



17,408

Accrued expenses and other liabilities



8,704,888



6,655,592

Due to related parties and affiliates



485,301



352,827

Operating lease liabilities



112,977



209,644

Operating lease liabilities - related parties



410,582



243,726

Financing lease liabilities



5,195,122



5,172,943

Derivative liabilities



6,164,941



1,278,926

Current liabilities - discontinued operations



934,524



2,336,861

Total current liabilities



22,816,635



16,778,944








 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(CONTINUED)

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




June 30, 2021


March 31, 2021



(Unaudited)




Other liabilities







Borrowings from financial institutions, noncurrent



40,062



44,962

Operating lease liabilities, non-current



249,017



263,708

Operating lease liabilities, non-current - related parties



407,296



341,549

Financing lease liabilities, non-current



1,734,107



2,256,553

Deferred tax liability



45,659



44,993

Total other liabilities



2,476,141



2,951,765








Total liabilities



25,292,776



19,730,709








Commitments and contingencies














Stockholders' equity (deficiency)







Common stock (par value $0.0001 per share, 100,000,000
shares authorized; 55,356,670 and 49,780,725 shares issued
and outstanding at June 30, 2021 and March 31, 2021, respectively)



5,536



4,978

Additional paid-in capital



43,031,107



40,755,327

Accumulated deficit



(40,313,536)



(34,064,921)

Accumulated other comprehensive loss



(845,908)



(838,671)

Total Senmiao Technology Limited stockholders' equity



1,877,199



5,856,713








Non-controlling interests



(4,417,499)



(3,284,143)








Total equity (deficiency)



(2,540,300)



2,572,570








Total liabilities and equity (deficiency)


$

22,752,476


$

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



June 30, 



2021


2020



(Unaudited)


(Unaudited)

Revenues


$

1,850,075


$

1,146,916

Cost of revenues



(3,779,346)



(800,256)

Gross profit (loss)



(1,929,271)



346,660








Operating expenses







Selling, general and administrative expenses



(3,683,277)



(1,960,425)

Provision for doubtful accounts, net of recovery



(45,553)



(128,612)

Impairments of long-lived assets and goodwill



(164,257)



Total operating expenses



(3,893,087)



(2,089,037)








Loss from operations



(5,822,358)



(1,742,377)








Other expense







Other expense, net



(56,659)



(6,076)

Interest expense



(14,696)



(20,648)

Interest expense on finance leases



(107,639)



(226,177)

Change in fair value of derivative liabilities



(1,369,284)



(282,980)

Total other expense, net



(1,548,278)



(535,881)








Loss before income taxes



(7,370,636)



(2,278,258)

Income tax expense





(6,272)

Net loss from continuing operations



(7,370,636)



(2,284,530)

Net loss from discontinued operations, net of applicable income taxes





(85,654)








Net loss



(7,370,636)



(2,370,184)

Net loss attributable to non-controlling interests from continuing operations



1,122,021



389,699








Net loss attributable to stockholders


$

(6,248,615)


$

(1,980,485)

Net loss


$

(7,370,636)


$

(2,370,184)








Other comprehensive income (loss)







Foreign currency translation adjustment



(18,572)



11,717

Comprehensive loss



(7,389,208)



(2,358,467)








less: Total comprehensive loss attributable to noncontrolling interests



(1,133,356)



(387,386)

Total comprehensive loss attributable to stockholders


$

(6,255,852)


$

(1,971,081)

Weighted average number of common stock







Basic and diluted



52,731,560



29,008,818








Loss per share – basic and diluted







Continuing operations


$

(0.12)


$

(0.07)








Loss per share -







Discontinued operations


$


$

(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 Three Months Ended



June 30, 



2021


2020



(Unaudited)


(Unaudited)

Cash Flows from Operating Activities:







Net loss


$

(7,370,636)


$

(2,370,184)

Net loss from discontinued operations





(85,654)

Net loss from continuing operations



(7,370,636)



(2,284,530)

Adjustments to reconcile net loss to net cash used in operating activities:







Depreciation and amortization of property and equipment



211,588



58,085

Amortization of right-of-use assets



1,182,825



880,785

Amortization of intangible assets



37,340



20,814

Provision for doubtful accounts, net of recovery



45,553



128,612

Impairments of long-lived assets and goodwill



164,257



Change in fair value of derivative liabilities



1,369,284



282,980

Change in operating assets and liabilities







Accounts receivable



302,036



(94,912)

Inventories



(126,111)



(10,647)

Prepayments, other receivables and other assets



(1,186,463)



365,804

Finance lease receivables



190,695



(74,350)

Accounts payable



843,054



3,609

Advances from customers



(3,108)



42,437

Income tax payable





60

Accrued expenses and other liabilities



1,896,615



564,708

Operating lease liabilities



(118,341)



(81,842)

Operating lease liabilities - related parties



33,877



(18,502)

Net cash used in operating activities from continuing operations



(2,527,535)



(216,889)

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



(1,107,924)



183,832

Net Cash Used in Operating Activities



(3,635,459)



(33,057)








Cash Flows from Investing Activities:







Purchases of property and equipment



(2,072,779)



(4,891)

Net cash used in investing activities from continuing operations



(2,072,779)



(4,891)

Net cash used in investing activities from discontinued operations



(1,395)



(70)

Net Cash Used in Investing Activities



(2,074,174)



(4,961)








Cash Flows from Financing Activities:







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



5,771,053



Net proceeds from issuance of common stock upon warrants exercised



22,015



Borrowings from financial institution



258,001



122,406

Loan to related party



(8,654)



(19,693)

Borrowings from related parties and affiliates



125,493



Repayments to related parties and affiliates





(4,155)

Repayments of current borrowings from financial institutions



(127,098)



(23,739)

Principal payments of finance lease liabilities



(718,648)



(376,670)

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



5,322,162



(301,851)

Net cash provided by financing activities from discontinued operations





7,233

Net Cash Provided by (Used in) Financing Activities



5,322,162



(294,618)

 


SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(CONTINUED)

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




For the Three Months Ended



June 30, 



2021


2020



(Unaudited)


(Unaudited)








Effect of exchange rate changes on cash and cash equivalents



(23,086)



10,239








Net decrease in cash and cash equivalents



(410,557)



(322,397)

Cash and cash equivalents, beginning of period



4,448,075



844,028

Cash and cash equivalents, end of period



4,037,518



521,631








Less: Cash and cash equivalents from discontinued operations





(5,033)

Cash and cash equivalents from continuing operations, end of period


$

4,037,518


$

516,598

Supplemental Cash Flow Information







Cash paid for interest expense


$

14,696


$

20,648

Cash paid for income tax


$


$

Non-cash Transaction in Investing and Financing Activities







Recognition of right-of-use assets and lease liabilities


$


$

1,780,027

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


$

298,628


$

Acquisition of equipment through prepayment and financing lease receivables offset


$


$

85,455

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


$

3,562,404


$

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


$

45,674


$

 

Cision View original content:https://www.prnewswire.com/news-releases/senmiao-technology-reports-fiscal-2022-first-quarter-financial-results-301356137.html

Source: Senmiao Technology Limited
Related Stocks:
NASDAQ:AIHS
collection