EX-99.1 2 tm2321172d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

Senmiao Technology Reports Fiscal 2023 Year-end Financial Results

 

CHENGDU, China, July 12, 2023 -- 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: 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. 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