Senmiao Technology Announces Financial Results for Fiscal Year Ended March 31, 2020

CHENGDU, China, July 9, 2020 /PRNewswire/ -- Senmiao Technology Limited (NASDAQ: AIHS) ("Senmiao"), a provider of automobile transaction and related services targeting the ride-hailing industry in China, today announced its financial results for its full fiscal year ended March 31, 2020.

Fiscal Year 2020 Highlights

• Revenue from automobile transaction and related services business increased by 514% year-over-year to $15,655,575 from $2,551,107;
• Revenue from sales of automobiles expanded to $11,536,691, up 535% from $1,815,425 in the prior year;
• Gross profit from automobile transaction and related services business increased by 357% year-over-year to $3,375,337 from $738,920;
• Number of facilitated new automobile purchase increased by 323% year-over-year to 1,315 from 311;
• In Fiscal Year 2020, there were over 2,300 new drivers joining Senmiao's online ride-sharing business

"Although we faced a significantly weaker operating environment as a result of COVID-19 in our fiscal fourth quarter after maintaining profitability through the first nine months, we grew our streamlined automobile transaction and related services revenue by five-fold" commented Xi Wen, Chairman, Chief Executive Officer and President of Senmiao. "We continue to believe in the huge long-term market opportunity resulting from the rapid development of the online ride-hailing service industry in China. Our near-term strategic business focus has shifted from the facilitation of automobile transactions and financing to providing more rentals of automobiles, and we are also streamlining expenses while the business environment improves. We are also actively exploring opportunities for new capital, such as our recently announced US$7 million financing transaction into our auto business operating entity in China, that will increase our ability to weather the downturn resulting from COVID-19 as well as competition and continue to expand our business in southwestern China. To summarize, we believe we are executing on our goal in becoming an outstanding and leading provider of automobile transaction and related services to the growing online ride-hailing eco-system in China."

Revenues

Total revenue from Senmiao's automobile transaction and related services business (the "Auto Business") was $15,655,575 for the full fiscal year ended March 31, 2020, an increase of $13,104,468, or 514% as compared with the fiscal year ended March 31, 2019, primarily due to Senmiao's significant expansion of the Auto Business. The revenue excludes $112,440 in revenue from online lending services that is now a discontinued business.

The increase is attributed to Senmiao's business expansion in Chengdu and Changsha. Although, Senmiao believes there is huge market opportunity resulting from the rapid development of the online ride-hailing service market in China, due to impact of measures and restrictions to combat the COVID-19 nationwide epidemic in China, Senmiao experienced a decrease in its revenue from its Auto Business for the three months ended March 31, 2020 as compared with the prior year.

Cost of Revenues

Cost of revenues was $12,280,238 for the full fiscal year ended March 31, 2020. Cost of revenues increased by $10,468,051, or 578% during the year ended March 31, 2020 as compared with the prior year and was attributed to the increase in the number of automobiles sold that increased from 212 to 1,176 as well as operating lease expenses in the year ended March 31, 2020.

Gross Profit

Gross profit was $3,375,337. Gross profit from Auto Business increased by $2,636,417 or 357% during the year ended March 31, 2020 as compared with the prior year mainly due to the business expansion and the increase in the number of facilitated new automobile purchases from the Auto Business.

Selling, General and Administrative Expenses

Selling, general and administrative expenses from Auto Business were $5,567,939 for the fiscal year ended March 31, 2020 as compared to $1,776,690 during the prior year, representing an increase of $3,791,249. The increase was mainly attributable to the increased salary and employee benefits, advertising and promotion, amortization of automobiles, rental and other office expenses by the expansion of the Auto Business.  Meanwhile, the selling, general and administrative expenses for the discontinued online lending services decreased to $1,365,733 for the fiscal year ended March 31, 2020 from $2,242,905 for the fiscal year ended March 31, 2019.

Change in Fair Value of Derivative Liabilities

The change in fair value of derivative liabilities resulted in a gain of $1,796,724, derived from change of the fair value between March 31, 2020 and June 20, 2019 of the warrants issued in Senmiao's registered direct offering in June 2019.

Net Loss

Total net loss for the full fiscal year ended March 31, 2020 was $9,935,803 as compared to a net loss of $4,542,525 in the prior year. Net loss from Auto Business and discontinued online lending services for the full fiscal year ended March 31, 2020 was $4,348,776 and $5,587,027 as compared with a net loss of $1,155,775 and $3,386,750, respectively, during the prior year.

Loss per share

Loss per share for Auto Business was $0.11 and $0.05 and loss per share for discontinued online lending services was $0.20 and $0.13, respectively, for the full fiscal years ended March 31, 2020 and 2019.

Financial Position

As of March 31, 2020, Senmiao had cash and cash equivalents of $833,888 as compared to $3,967,980 as of March 31, 2019 for its Auto Business. Senmiao also had cash and cash equivalents of $10,139 as of March 31, 2020 as compared with $1,052,530 as of March 31, 2019 for its discontinued online lending services.

Impact of COVID-19

The COVID-19 outbreak in China adversely and materially affected Senmiao's business operations, financial condition and operating results in the quarter ended March 31, 2020, including but not limited to temporary closure of offices, decrease in revenues, slower collection of accounts receivables and additional allowance for doubtful accounts. However, as the ride-hailing markets in Chengdu and Changsha are gradually recovering from the impact of COVID-19, Senmiao expects its business to improve in the second half of 2020.

For additional related information, please see Senmiao's Annual Report on Form 10-K for the fiscal year ended March 31, 2020, which is being filed with the U.S. Securities and Exchange Commission today.

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, operating lease, guarantee and other automobile transaction services aimed principally at the growing ride-sharing market in Senmiao's areas of operation in China. 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. Forward-looking statements include statements concerning the development of Senmiao's Auto Business, the Chinese ride-sharing 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. 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 Auto Business may not be realized; the risks associated with the discontinuance of Senmiao's online lending business; Senmiao's future business development; product and service demand and acceptance; the risks and impact of any reoccurrence of the COVID-19 pandemic in China; 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:
Yiye Zhou
Email: [email protected]
Phone: +86 28 6155 4399

Investor Relations:
Rene Vanguestaine
Christensen
Email: [email protected]
Phone: +86 178 1749 0483

Linda Bergkamp
Christensen
Email: [email protected]
Phone: +1 480 614 3004

SOURCE Senmiao Technology Limited

Related Links

http://www.senmiaotech.com