Senmiao Technology Reports Fiscal 2021 Third Quarter Financial Results, Provides January 2021 Operating Metrics

16-Feb-2021 Intellasia | PR Newswire Asia | 8:45 PM Print This Post

CHENGDU, China, Feb. 16, 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 its own online ride-hailing platform, today announced financial results for the fiscal 2021 third quarter ended December 31, 2020.

Management Commentary

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "During our fiscal third quarter, we were excited to launch Senmiao's own online ride-hailing platform, first in Chengdu in October and in Changsha in December 2020. Our platform has helped facilitate over 2.2 million rides since launch, and we are very optimistic about the growth opportunities we see in this business, particularly given the new strategic cooperation we have with various reputable technology and consumer brands in China, including Gaode Map, Meituan, and Chengdu Xingchong, a subsidiary of Star Charge. These partnerships will not only increase our exposure to an expanded customer audience but will also help drive our geographic growth in the years to come."

Mr. Wen continued, "We are pleased to have achieved sequential top line revenue growth during our third quarter for the second straight period, evidencing growth in our ride-hailing focused businesses. With the significant changes we have made to our business model and new partnerships forged over the course of the past year, we believe we have a tremendous growth opportunity in front of us. In that regard, we recently completed a registered direct offering for aggregate gross proceeds of $7.0 million, which we intend to use toward executing our strategic growth initiatives."

Financial Review

Revenues

Total revenues were $1,638,550 for the quarter ended December 31, 2020, compared to $2,745,579 in the same period last year and $1,390,396 for the quarter ended September 30, 2020. The decline from the same period of the prior year was largely due to the impact of COVID-19, which resulted in a significant decrease in the number of facilitated new automobile purchases and a significant number of ride-hailing drivers exiting the ride-hailing business and tendering their vehicles to Senmiao for sublease and sale.

As the ride-hailing markets in Chengdu and Changsha have gradually recovered from the impact of COVID-19 beginning in April 2020, Senmiao also experienced a decrease in the number of automobiles tendered to it by the ride-hailing drivers exiting the business during the quarter ended December 31, 2020 as compared with prior quarters.

Monthly installments collected from automobile sale and leasing customers in the three months ended December 31, 2020, remained stable when compared to the three months ended September 30, 2020. Earlier in 2020, a higher number of ride-hailing drivers delayed their monthly installment payments as a result of the COVID-19 pandemic. However, Senmiao has seen a gradual improvement in collections through the end of 2020 and into 2021.

Senmiao strategically shifted its business focus to include automobile rental options for ride-hailing drivers as a measure of creating additional revenue. The automobile rental business generated revenue of $939,645 for the quarter ended December 31, 2020.

As the ride-hailing industry in China continues to recover, and with Senmiao's recent partnerships and proactive measures to address the changing market conditions, Senmiao expects revenue to increase in the fourth quarter of its fiscal year 2021 and in subsequent periods.

Cost of Revenues

Cost of revenues was $1,793,815 for the quarter ended December 31, 2020, compared to $1,901,405 during the same period last year. The decline was primarily due to the decrease in the number of automobiles sold, partially offset by a $1,205,826 increase in costs of automobiles under operating leases and $396,965 in direct expense and technical service fees of online ride-hailing platform services, as a result of the commencement and expansion of those two businesses.

Gross Profit (Loss)

Gross loss was $155,265, or approximately 9.5% negative gross margin, for the quarter ended December 31, 2020, compared to gross profit of $844,174, or approximately 30.7% gross margin, in the prior-year period, due to the decreased number of facilitated new automobile purchases.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $2,401,250 for the quarter ended December 31, 2020, compared to $1,240,213 during the same period last year. The SG&A increase mainly consisted of an increase of $413,072 in amortization of automobiles which were tendered to Senmiao but have not been sub-leased or sold, an increase of $391,106 in salary and employee benefits as Senmiao's employees increased from 158 to 201, an increase of $152,235 in professional service fees such as financial, legal and market consulting, and an increase of $204,624 in advertising and promotion, rental and other office expenses.

Net Loss

Net loss from Senmiao's continuing operations for the quarter ended December 31, 2020 was $3,673,892, compared to $962,700 for the quarter ended December 31, 2019, which was primarily the result of the decrease in revenue and gross profit and increase in selling, general and administrative expenses as stated above, as well as an increase of $545,443 in the change of the fair value of derivative liabilities recorded for the three months ended December 31, 2020.

Loss per Share

Loss per share for continuing operations was approximately $0.07 based on a weighted average number of basic and diluted common stock of 43,822,321, compared to approximately $0.03 based on a weighted average number of basic and diluted common stock of 28,825,281.

Financial Position

As of December 31, 2020, Senmiao had cash and cash equivalents of $3,537,630, compared to $833,888 as of March 31, 2020 for its continuing operations. Total stockholders' equity was $739,755 as of December 31, 2020, compared to $1,472,357 as of March 31, 2020.

Subsequent to the end of the quarter (on February 10, 2021), Senmiao closed a registered direct offering of an aggregate of 5,072,465 shares of common stock at a price of $1.38 per share for aggregate gross proceeds of $7.0 million. Senmiao has approximately 49.3 million common shares outstanding after the offering.

Impact of COVID-19

With a local outbreak reported in Chengdu in mid-December 2020, the COVID-19 pandemic continued to have an adverse effect on Senmiao's business operations, financial condition and operating results in the quarter ended December 31, 2020, including but not limited to a decrease in revenues from its online ride-hailing services. However, as the ride-hailing market in Chengdu has recovered from the impact of COVID-19 and with the launch of its online ride-hailing platform in Changsha, Senmiao expects its business to continue to improve in the remainder of its current fiscal year ending March 31, 2021.

Further information regarding Senmiao's results of operations for the quarter ended December 31, 2020 can be found in Senmiao's Quarterly Report on Form 10-Q, which will be filed with the Securities and Exchange Commission.

Operating Metrics for January 2021 – Over 910,000 Completed Rides on Senmiao's Ride-Hailing Platform

Since its launch in Chengdu in October 2020 and in Changsha in December 2020, over 2.2 million rides have been completed using Senmiao's online ride-hailing platform, including over 910,000 rides during January 2021. The growth rate of the number of completed orders and drivers completing rides and earning income via the platform (known as Active Drivers) from December 2020 to January 2021 was approximately 47% and 65%, respectively.

Senmiao has seen a significant increase in the number of rides and Active Drivers following its strategic cooperation with Gaode Map and Meituan, two well-known ride-hailing aggregation platforms in China. Senmiao continued to see strong adoption of its platform in Changsha since its launch in late December 2020.

The table below presents approximate, unaudited operating metrics of Senmiao's online ride-hailing platform since its launch in October 2020.



Completed Orders (Approximate, in thousands)


Total Fares Paid by Riders

(Approximate, $ in thousands USD)


Active Drivers
(Approximate)

October 2020


161


531


1,800

November 2020


537


1,646


3,400

December 2020


620


1,862


5,000

January 2021


910


2,626


8,300

Cumulative


2,228


6,665


N/A

In addition, as of January 31, 2021, approximately 32% of Active Drivers also lease automobiles from Senmiao, which demonstrates early results from Senmiao's strategy to cross sell its core ride-hailing focused automobile finance and leasing business with the newer ride-hailing business.

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 aimed principally at the growing ride-sharing market in Senmiao's areas of operation in China. Senmiao also operates Xixingtianxia, its own proprietary online ride-hailing platform. For more information about Senmiao, please visit: http://www.senmiaotech.com.

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: [email protected] 
Phone: +86 28 6155 4399

Investor Relations:

The Equity Group Inc.
Adam Prior, Senior Vice President
(212) 836-9606
[email protected]

In China
Lucy Ma, Associate
+86 10 5661 7012
[email protected] 

© 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)



December 31,



March 31,




2020



2020


ASSETS









Current assets









Cash, and cash equivalents


$

3,537,630



$

833,888


Restricted cash



5,190




-


Accounts receivable, net, current portion



1,165,695




660,645


Inventories



428,503




1,000,675


Finance lease receivables, net, current portion



672,960




459,110


Prepayments, other receivables and other assets, net



2,906,688




2,798,780


Due from related parties



69,099




26,461


Current assets - discontinued operations



490,235




826,580


Total current assets



9,276,000




6,606,139











Property and equipment, net









Property and equipment, net



1,104,104




469,201


Property and equipment, net - discontinued operations



7,884




11,206


Total property and equipment, net



1,111,988




480,407











Other assets









Operating lease right-of-use assets, net



398,563




473,661


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



358,850




236,305


Financing lease right-of-use assets, net



5,697,293




5,440,362


Intangible assets, net



979,000




777,621


Goodwill



145,954




-


Accounts receivable, net, non-current



448,658




882,078


Finance lease receivables, net, non-current



501,250




734,145


Total other assets



8,529,568




8,544,172











Total assets


$

18,917,556



$

15,630,718











LIABILITIES AND EQUITY









Current liabilities









Borrowings from financial institutions


$

426,715



$

226,753


Accounts payable



238,871




4,065


Advances from customers



153,185




90,349


Income tax payable



25,899




16,267


Accrued expenses and other liabilities



4,772,208




2,008,391


Due to related parties and affiliates



168,837




152,679


Operating lease liabilities



142,245




149,582


Operating lease liabilities - related parties



211,622




151,655


Financing lease liabilities



5,103,911




3,473,967


Derivative liabilities



1,043,430




342,530


Current liabilities - discontinued operations



2,627,510




4,516,292


Total current liabilities



14,914,433




11,132,530











Other liabilities









Borrowings from financial institutions, non-current



47,456




64,221


Operating lease liabilities, non-current



202,408




297,167


Operating lease liabilities, non-current - related parties



179,021




88,349


Financing lease liabilities, non-current



2,789,337




2,576,094


Deferred tax liability



45,146




-


Total other liabilities



3,263,368




3,025,831











SENMIAO TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(CONTINUED)
(Expressed in U.S. dollar, except for the number of shares)




December 31, 2020




March 31,

2020











Total liabilities



18,177,801




14,158,361











Commitments and contingencies


















Stockholders' equity









Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 44,201,052 and 29,008,818 shares issued and outstanding at December 31 and March 31, 2020, respectively)



4,420




2,901


Additional paid-in capital



34,793,916




27,013,137


Accumulated deficit



(30,947,104)




(23,704,863)


Accumulated other comprehensive loss



(741,183)




(507,478)


Total Senmiao Technology Limited stockholders' equity



3,110,049




2,803,697











Non-controlling interests



(2,370,294)




(1,331,340)











Total equity



739,755




1,472,357











Total liabilities and equity


$

18,917,556



$

15,630,718


 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
December 31,



For the
Nine Months Ended
December 31,




2020



2019



2020



2019


Revenues


$

1,638,550



$

2,745,579



$

4,175,862



$

13,643,429


Cost of revenues



(1,793,815)




(1,901,405)




(3,588,586)




(10,632,901)


Gross profit



(155,265)




844,174




587,276




3,010,528



















Operating expenses

















Selling, general and administrative expenses



(2,401,250)




(1,240,213)




(7,110,884)




(3,258,161)


Bad debts (expenses) Recovery, net



187,907




(99,025)




106,835




(228,249)


Impairments of long-lived assets



(41,983)




-




(122,206)




-


Total operating expenses



(2,255,326)




(1,339,238)




(7,126,255)




(3,486,410)



















Loss from operations



(2,410,591)




(495,064)




(6,538,979)




(475,882)



















Other income (expense)

















Other income (expense), net



(72,586)




(37,636)




56,795




(53,364)


Interest expense



(2,158)




(17,248)




(37,698)




(79,593)


Interest expense on finance leases



(150,227)




-




(587,457)




-


Change in fair value of derivative liabilities



(1,030,843)




(485,400)




(1,443,784)




1,509,406


Total other income (expense), net



(1,255,814)




(540,284)




(2,012,144)




1,376,449



















Income (Loss) before income taxes



(3,666,405)




(1,035,348)




(8,551,123)




900,567



















Income tax benefits (expenses)



(7,487)




72,648




(14,464)




(32,950)



















Net income (loss) from continuing operations



(3,673,892)




(962,700)




(8,565,587)




867,617



















Net loss from discontinued operations, net of applicable income taxes



(572)




(4,399,236)




(78,351)




(5,593,627)



















Net loss



(3,674,464)




(5,361,936)




(8,643,938)




(4,726,010)



















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



593,452




34,769




1,401,697




(89,264)



















Net loss attributable to stockholders


$

(3,081,012)



$

(5,327,167)



$

(7,242,241)



$

(4,815,274)



















Net loss


$

(3,674,464)



$

(5,361,936)



$

(8,643,938)



$

(4,726,010)



















Other comprehensive income (loss)

















Foreign currency translation adjustment



(61,953)




206,432




(215,452)




(253,983)



















Comprehensive loss



(3,736,417)




(5,155,504)




(8,859,390)




(4,979,993)



















Total comprehensive income (loss) attributable to noncontrolling interests



(252,130)




30,015




(1,038,954)




28,467



















Total comprehensive loss attributable to stockholders


$

(3,484,287)



$

(5,185,519)



$

(7,820,436)



$

(5,008,460)


SENMIAO TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(CONTINUED)
(Expressed in U.S. dollar, except for the number of shares)



For the Three Months Ended December 31,



For the Nine Months Ended December 31,




2020



2019



2020



2019


Weighted average number of common stock

















Basic and diluted



43,822,321




28,825,281




36,906,608




27,733,885



















Earnings (loss) per share - basic and diluted

















Continuing operations


$

(0.07)



$

(0.03)



$

(0.19)



$

0.03


Discontinued operations


$

(0.00)



$

(0.15)



$

(0.00)



$

(0.20)


SENMIAO TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in U.S. dollar, except for the number of shares) 



For the Nine Months Ended
December 31,




2020



2019


Cash Flows from Operating Activities:









Net loss


$

(8,643,938)



$

(4,726,010)


Net loss from discontinued operations



(78,351)




(5,593,627)


Net income (loss) from continuing operations



(8,565,587)




867,617


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









Depreciation and amortization of property and equipment



175,884




82,672


Stock compensation expense



445,000




-


Amortization of right-of-use assets



3,119,274




89,095


Amortization of intangible assets



59,209




197


Provision (recovery) for doubtful accounts



(106,835)




228,249


Impairment loss of financing lease right-of-use assets



122,206




-


Loss (gain) on disposal of equipment



(420)




4,593


Change in fair value of derivative liabilities



1,443,784




(1,509,406)


Change in operating assets and liabilities









Accounts receivable



227,174




(2,985,722)


Inventories



226,852




(72,278)


Prepayments, other receivables and other assets



137,701




(1,226,099)


Finance lease receivables



113,911




(1,146,021)


Accounts payable



174,160




55,464


Advances from customers



52,453




29,693


Income tax payable



7,847




5,860


Accrued expenses and other liabilities



2,223,905




548,545


Operating lease liabilities



(132,885)




(80,297)


Operating lease liabilities - related parties



68,326




-


Net cash used in operating activities from continuing operations



(208,041)




(5,107,838)


Net cash used in operating activities from discontinued operations



(1,578,633)




(1,896,242)


Net Cash used in Operating Activities



(1,786,674)




(7,004,080)











Cash Flows from Investing Activities:









Purchases of property and equipment



(199,896)




(414,958)


Prepayment of intangible assets



-




(470,000)


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



7,975




-


Net cash used in investing activities from continuing operations



(191,921)




(884,958)


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



(2,258)




1,822


Net Cash Used in Investing Activities



(194,179)




(883,136)











Cash Flows from Financing Activities:









Net proceeds from issuance of common stock in registered direct offering



-




5,142,124


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



6,098,297




-


Net proceeds from issuance of common stock upon warrants exercised



496,117




111


Borrowings from financial institutions



508,275




-


Repayments to stockholders



-




(90,000)


Repayments to third parties



-




(459,635)


Borrowings from related parties and affiliates



-




555,616


Repayments from related parties



-




27,577


Repayments to related parties and affiliates



(213,342)




(1,554,423)


Repayments of current borrowings from financial institutions



(354,504)




(129,698)


Release of escrow receivable



-




600,000


Principal payments of finance lease liabilities



(1,771,214)




-


Net cash provided by financing activities from continuing operations



4,763,629




4,091,672


SENMIAO TECHNOLOGY LIMITED
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)
(Expressed in U.S. dollar, except for the number of shares)




For the Nine Months Ended
December 31,





2020



2019











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



(167,315)




154,103


                         Net Cash Provided by Financing Activities



4,596,314




4,245,775











Effect of exchange rate changes on cash, cash equivalents and restricted cash



83,332




(196,028)











Net increase (decrease) in cash, cash equivalents and restricted cash



2,698,793




(3,837,469)


Cash, cash equivalents, and restricted cash, beginning of period



844,027




5,020,510


Cash, cash equivalents, and restricted cash end of period



3,542,820




1,183,041











Less: Cash, cash equivalents, and restricted cash from discontinued operations



-




(9,520)











Cash, cash equivalents, and restricted cash from continuing operations, end of period


$

3,542,820



$

1,173,521











Supplemental Cash Flow Information









Cash paid for interest expense


$

35,419



$

79,593


Cash paid for income tax


$

-



$

-


Non-cash Transaction in Investing and Financing Activities









Recognition of right-of-use assets and lease liabilities


$

3,145,506



$

957,472


Acquisition of equipment through prepayment and financing lease


$

540,968



$

-


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


$

(241,919)



$

3,150,006


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


$

984,803



$

1,010,752


Acquisition of XXTX with payables


$

314,290



$

-


Goodwill recognized in acquisition of XXTX


$

145,954



$

-


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

 

Category: PR Newswire, PRAsia

Print This Post

Comments are closed.