Senmiao Technology Reports Fiscal 2022 Third Quarter Financial Results
CHENGDU, China, Feb. 15, 2022 /PRNewswire/ -- 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 2022 third quarter ended December 31, 2021. Additional information regarding Senmiao's results of operations for the quarter ended December 31, 2021, can be found in the quarterly report on Form 10-Q that was filed with the U.S. Securities and Exchange Commission on February 14, 2022.
Fiscal 2022 Third Quarter Financial and Operating Highlights
- Total revenues of $3.5 million, an increase of approximately 116% from $1.6 million in the prior-year period, primarily as a result of increased operating lease revenues from automobile rentals and revenues from online ride-hailing platform services.
- Net loss from continuing operations was $0.1 million, decreased from net loss of $3.7 million in the prior-year period.
- During the nine months ended December 31, 2021, approximately 10.2 million rides were completed through Senmiao's platform with gross fares paid by riders totaling $32.2 million.
- During the three months ended December 31, 2021, Senmiao launched its online ride-hailing platform in five cities, expanding its relationship with Gaode Map (AutoNavi Software Co., Ltd.) to Xuzhou and Suzhou, two major cities in Jiangsu Province; Hezhou, a city in Guangxi Province; Shenyang, the capital of Liaoning Province; and Haikou, the capital of Hainan Province.
Management Commentary
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We are pleased that our continued top line growth has resulted in an improved bottom line during the third quarter of fiscal year 2022. Our business is primarily driven by our automobile rental leasing business and online ride-hailing platform services. Since its launch in October 2020, we have helped facilitate over 18.1 million rides in 14 cities as of the end of January 2022. As we continue to launch the platform in new cities and expand our relationships with key partners, we anticipate operating lease revenues from automobile rentals will continue to grow, as will revenue from online ride-hailing platform services, which we expect will accelerate our return to profitability."
Mr. Wen continued, "During the first nine months of fiscal year 2022, we have continued to deepen our strategic relationships with partners such as Meituan and Gaode Map while establishing new cooperations with brands that have a strong local presence in existing and new markets. We believe developing an extensive network of trusted partners will play a critical role in elevating Senmiao's position as a leading online ride-hailing platform provider in China. We look forward to working closely with new and existing partners as we serve an ever-growing population of ride-hailing drivers and riders."
Financial Review
Revenues
Total revenues were $3.5 million for the fiscal third quarter ended December 31, 2021, an increase of 116% from $1.6 million in the prior-year period and an increase of 24% from $2.9 million in the prior sequential quarter. The increase was largely due to the $1.0 million increase in operating lease revenues from automobile rentals and $0.7 million increase in revenue contributions from online ride-hailing platform services, which was supported by the launches of our platform in 11 new cities in China as well as the new cooperation model with Meituan during the fiscal third quarter as compared with the prior-year period. This was partially offset by a lack of revenue contributions from the Company's legacy businesses related to automobile sales and facilitation of automobile transactions and financing, which was a result of the Company's shift in business focus to automobile leasing.
Cost of Revenues
Cost of revenues increased to $2.7 million for the fiscal third quarter ended December 31, 2021, compared to $1.8 million in the prior-year period, primarily due to a $0.4 million increase in cost of automobiles under operating leases and $0.7 million increase in direct expense and technical service fees related to Senmiao's online ride-hailing platform. The increase in these two segments is mainly attributable to the expansion of these two businesses.
Gross Profit
Gross profit was $0.9 million for the fiscal third quarter ended December 31, 2021, compared to gross loss of $0.2 million in the prior-year period, primarily as a result of the growth in Senmiao's operating lease business and the new cooperation model with Meituan.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased to $3.8 million for the fiscal third quarter ended December 31, 2021, from $2.4 million in the prior-year period. The increase was mainly attributable to a $0.6 million increase in salary and employee benefits as Senmiao's employee headcount increased from 241 to 333; a $0.3 million increase in offices rental and charges; and a $0.5 million increase in financial, legal and marketing consulting, which were partially offset by a $0.3 million decrease in amortization of intangible assets and rendered automobiles that 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 third quarter ended December 31, 2021, improved to $0.1 million, from a net loss of $3.7 million in the prior-year period. This was primarily the result of the increased revenues, costs and the gain in change in fair value of derivative liabilities. During the fiscal third quarter ended December 31, 2021, Senmiao had a gain of $3.6 million from change in fair value of derivative liabilities related to warrants issued in Senmiao's historical offerings, from a loss of $1.0 million in the prior-year period.
Earnings (Loss) per Share
Earnings per share for continuing operations for the fiscal third quarter ended December 31, 2021, was approximately $0.00 based on a weighted average number of basic and diluted common stock of 59.2 million, compared to loss per share of approximately $0.07 based on a weighted average number of basic and diluted common stock of 43.8 million in the prior-year period.
Financial Position
As of December 31, 2021, Senmiao had cash and cash equivalents of $2.8 million, compared to $4.4 million as of March 31, 2021.
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. 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 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 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
+1 415-568-2255 +86 10 5661 7012
csohn@equityny.com lma@equityny.com
© 2022 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, | |||||
2021 | 2021 | |||||
(Unaudited) | ||||||
ASSETS | ||||||
Current assets | ||||||
Cash, and cash equivalents | $ | 2,801,711 | $ | 4,448,075 | ||
Accounts receivable, net, current portion | 794,389 | 1,437,195 | ||||
Inventories | 211,054 | 127,933 | ||||
Finance lease receivables, net, current portion | 356,504 | 541,605 | ||||
Prepayments, other receivables and other assets, net | 3,797,476 | 3,905,278 | ||||
Due from related parties | 27,938 | 39,572 | ||||
Current assets - discontinued operations | 12,334 | 393,348 | ||||
Total current assets | 8,001,406 | 10,893,006 | ||||
Property and equipment, net | ||||||
Property and equipment, net | 6,429,798 | 3,700,147 | ||||
Property and equipment, net - discontinued operations | — | 5,592 | ||||
Total property and equipment, net | 6,429,798 | 3,705,739 | ||||
Other assets | ||||||
Operating lease right-of-use assets, net | 354,312 | 499,221 | ||||
Operating lease right-of-use assets, net, related parties | 578,951 | 580,367 | ||||
Financing lease right-of-use assets, net | 2,096,466 | 4,778,772 | ||||
Intangible assets, net | 939,193 | 968,131 | ||||
Goodwill | — | 135,388 | ||||
Accounts receivable, net, noncurrent | 29,275 | 269,183 | ||||
Finance lease receivables, net, noncurrent | 158,163 | 473,472 | ||||
Total other assets | 4,156,360 | 7,704,534 | ||||
Total assets | $ | 18,587,564 | $ | 22,303,279 | ||
LIABILITIES, MEZZANINE EQUITY AND EQUITY | ||||||
Current liabilities | ||||||
Borrowings from financial institutions | $ | 500,363 | $ | 310,662 | ||
Accounts payable | 124,052 | 44,769 | ||||
Advances from customers | 749,345 | 155,586 | ||||
Income tax payable | 17,947 | 17,408 | ||||
Accrued expenses and other liabilities | 6,561,161 | 6,655,592 | ||||
Due to related parties and affiliates | 364,705 | 352,827 | ||||
Operating lease liabilities | 156,769 | 209,644 | ||||
Operating lease liabilities - related parties | 366,998 | 243,726 | ||||
Financing lease liabilities | 4,526,480 | 5,172,943 | ||||
Derivative liabilities | 3,981,377 | 1,278,926 | ||||
Current liabilities - discontinued operations | 527,104 | 2,336,861 | ||||
Total current liabilities | 17,876,301 | 16,778,944 | ||||
SENMIAO TECHNOLOGY LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED) (Expressed in U.S. dollar, except for the number of shares) | ||||||
December 31, | March 31, | |||||
2021 | 2021 | |||||
(Unaudited) | ||||||
Other liabilities | ||||||
Borrowings from financial institutions, noncurrent | 27,982 | 44,962 | ||||
Operating lease liabilities, non-current | 179,778 | 263,708 | ||||
Operating lease liabilities, non-current - related parties | 293,987 | 341,549 | ||||
Financing lease liabilities, non-current | 1,311,647 | 2,256,553 | ||||
Deferred tax liability | 46,386 | 44,993 | ||||
Total other liabilities | 1,859,780 | 2,951,765 | ||||
Total liabilities | 19,736,081 | 19,730,709 | ||||
Commitments and contingencies | ||||||
Mezzanine equity (redeemable) | ||||||
Series A convertible preferred stock (par value $0.0001 per share, 5,000 shares authorized; 5,000 | 820,799 | — | ||||
Stockholders' equity (deficiency) | ||||||
Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 61,783,794 and | 6,178 | 4,978 | ||||
Additional paid-in capital | 42,430,881 | 40,755,327 | ||||
Accumulated deficit | (39,738,151) | (34,064,921) | ||||
Accumulated other comprehensive loss | (778,437) | (838,671) | ||||
Total Senmiao Technology Limited stockholders' equity | 1,920,471 | 5,856,713 | ||||
Non-controlling interests | (3,889,787) | (3,284,143) | ||||
Total equity (deficiency) | (1,969,316) | 2,572,570 | ||||
Total liabilities, mezzanine equity and equity (deficiency) | $ | 18,587,564 | $ | 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 December 31, | For the Nine Months Ended December 31, | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Revenues | $ | 3,543,049 | $ | 1,638,550 | $ | 8,249,033 | $ | 4,175,862 | ||||
Cost of revenues | (2,692,177) | (1,793,815) | (9,339,832) | (3,588,586) | ||||||||
Gross profit (loss) | 850,872 | (155,265) | (1,090,799) | 587,276 | ||||||||
Operating expenses | ||||||||||||
Selling, general and administrative expenses | (3,764,222) | (2,401,250) | (10,429,219) | (7,110,884) | ||||||||
Provision for doutful accounts, net of | 22,330 | 187,907 | (80,410) | 106,835 | ||||||||
Impairments of long-lived assets and | (7,982) | (41,983) | (178,125) | (122,206) | ||||||||
Total operating expenses | (3,749,874) | (2,255,326) | (10,687,754) | (7,126,255) | ||||||||
Loss from operations | (2,899,002) | (2,410,591) | (11,778,553) | (6,538,979) | ||||||||
Other income (expense) | ||||||||||||
Other expense(income), net | 170,847 | (72,586) | 152,893 | 56,795 | ||||||||
Interest expense | (16,475) | (2,158) | (44,123) | (37,698) | ||||||||
Interest expense on finance leases | (97,919) | (150,227) | (313,766) | (587,457) | ||||||||
Change in fair value of derivative liabilities | 3,536,859 | (1,030,843) | 5,185,309 | (1,443,784) | ||||||||
Issuance costs for issuing series A | (821,892) | — | (821,892) | — | ||||||||
Total other income (expense), net | 2,771,420 | (1,255,814) | 4,158,421 | (2,012,144) | ||||||||
Loss before income taxes | (127,582) | (3,666,405) | (7,620,132) | (8,551,123) | ||||||||
Income tax expense | (4,539) | (7,487) | (4,550) | (14,464) | ||||||||
Net loss from continuing operations | (132,121) | (3,673,892) | (7,624,682) | (8,565,587) | ||||||||
Net loss from discontinued operations, net of | — | (572) | — | (78,351) | ||||||||
Net loss | (132,121) | (3,674,464) | (7,624,682) | (8,643,938) | ||||||||
Net loss attributable to non-controlling | 287,580 | 593,452 | 1,951,452 | 1,401,697 | ||||||||
Net income (loss) attributable to the | $ | 155,459 | $ | (3,081,012) | $ | (5,673,230) | $ | (7,242,241) | ||||
Net loss | $ | (132,121) | $ | (3,674,464) | $ | (7,624,682) | $ | (8,643,938) | ||||
Other comprehensive income (loss) | ||||||||||||
Foreign currency translation adjustment | 70,638 | (61,953) | 48,458 | (215,452) | ||||||||
Comprehensive loss | (61,483) | (3,736,417) | (7,576,224) | (8,859,390) | ||||||||
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, | |||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
less: Total comprehensive loss attributable to | (303,768) | (252,130) | (1,984,990) | (1,038,954) | ||||||||
Total comprehensive income (loss) | $ | 242,285 | $ | (3,484,287) | $ | (5,591,234) | $ | (7,820,436) | ||||
Weighted average number of common stock | ||||||||||||
Basic and diluted | 59,226,547 | 43,822,321 | 55,792,713 | 36,906,608 | ||||||||
Earnings (loss) per share - basic and diluted | ||||||||||||
Continuing operations | $ | 0.00 | $ | (0.07) | $ | (0.10) | $ | (0.19) | ||||
Earnings (loss) per share - | ||||||||||||
Discontinued operations | $ | — | $ | (0.00) | $ | — | $ | (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 Nine Months Ended December 31, | ||||||
2021 | 2020 | |||||
(Unaudited) | (Unaudited) | |||||
Cash Flows from Operating Activities: | ||||||
Net loss | $ | (7,624,682) | $ | (8,643,938) | ||
Net loss from discontinued operations | — | (78,351) | ||||
Net loss from continuing operations | (7,624,682) | (8,565,587) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||
Depreciation and amortization of property and equipment | 849,642 | 175,884 | ||||
Stock compensation expense | 653,000 | 445,000 | ||||
Issuance costs for series A convertible preferred stock | 821,892 | — | ||||
Amortization of right-of-use assets | 3,347,999 | 3,119,274 | ||||
Amortization of intangible assets | 104,829 | 59,209 | ||||
Provision for doubtful accounts, net of recovery | 80,410 | (106,835) | ||||
Impairments of long-lived assets | 178,125 | 122,206 | ||||
Gain (loss) on disposal of equipment | — | (420) | ||||
Change in fair value of derivative liabilities | (5,185,309) | 1,443,784 | ||||
Change in operating assets and liabilities | ||||||
Accounts receivable | 820,818 | 227,174 | ||||
Inventories | (126,351) | 226,852 | ||||
Prepayments, other receivables and other assets | 396,788 | 137,701 | ||||
Finance lease receivables | 524,831 | 113,911 | ||||
Accounts payable | 76,877 | 174,160 | ||||
Advances from customers | 581,180 | 52,453 | ||||
Income tax payable | — | 7,847 | ||||
Accrued expenses and other liabilities | (231,230) | 2,223,905 | ||||
Operating lease liabilities | (149,466) | (132,885) | ||||
Operating lease liabilities - related parties | (124,143) | 68,326 | ||||
Net cash used in operating activities from continuing operations | (5,004,790) | (208,041) | ||||
Net cash used in operating activities from discontinued operations | (1,454,382) | (1,578,633) | ||||
Net Cash Used in Operating Activities | (6,459,172) | (1,786,674) | ||||
Cash Flows from Investing Activities: | ||||||
Purchases of property and equipment | (3,460,067) | (199,896) | ||||
Purchases of intangible assets | (76,637) | — | ||||
Cash acquired from XXTX, net of cash paid to XXTX | — | 7,975 | ||||
Net cash used in investing activities from continuing operations | (3,536,704) | (191,921) | ||||
Net cash used in investing activities from discontinued operations | (1,398) | (2,258) | ||||
Net Cash Used in Investing Activities | (3,538,102) | (194,179) | ||||
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, | ||||||
2021 | 2020 | |||||
(Unaudited) | (Unaudited) | |||||
Cash Flows from Financing Activities: | ||||||
Net proceeds from issuance of common stock and warrants in registered direct | 5,771,053 | — | ||||
Net proceeds from issuance of common stock and warrants in an underwritten public | — | 6,098,297 | ||||
Net proceeds from issuance of common stock upon warrants exercised | 22,015 | 496,117 | ||||
Net proceeds from issuance of series A convertible preferred stock and warrants in a | 4,369,937 | — | ||||
Borrowings from a financial institution | 693,777 | 508,275 | ||||
Loan to related parties | (171,738) | — | ||||
Borrowings from related parties and affiliates | 15,546 | — | ||||
Repayments to related parties and affiliates | — | (213,342) | ||||
Repayments of current borrowings from financial institutions | (529,226) | (354,504) | ||||
Principal payments of finance lease liabilities | (1,994,077) | (1,771,214) | ||||
Net cash provided by financing activities from continuing operations | 8,177,287 | 4,763,629 | ||||
Net cash used in financing activities from discontinued operations | — | (167,315) | ||||
Net Cash Provided by Financing Activities | 8,177,287 | 4,596,314 | ||||
Effect of exchange rate changes on cash and cash equivalents | 173,623 | 83,332 | ||||
Net (decrease) increase in cash and cash equivalents | (1,646,364) | 2,698,793 | ||||
Cash and cash equivalents, beginning of period | 4,448,075 | 844,027 | ||||
Cash and cash equivalents, end of period | 2,801,711 | 3,542,820 | ||||
Less: Cash and cash equivalents from discontinued operations | — | — | ||||
Cash and cash equivalents from continuing operations, end of period | $ | 2,801,711 | $ | 3,542,820 | ||
Supplemental Cash Flow Information | ||||||
Cash paid for interest expense | $ | 44,123 | $ | 35,419 | ||
Cash paid for income tax | $ | — | $ | — | ||
Non-cash Transaction in Investing and Financing Activities | ||||||
Recognition of right-of-use assets and lease liabilities | $ | 196,671 | $ | 3,145,506 | ||
Recognition of right-of-use assets and lease liabilities, related parties | $ | 180,973 | $ | — | ||
Acquisition of equipment through prepayment and financing lease receivables offset | $ | — | $ | 540,968 | ||
Allocation of fair value of derivative liabilities for issuance of common stock proceeds | $ | 7,933,434 | $ | (241,919) | ||
Allocation of fair value of derivative liabilities to additional paid in capital upon | $ | 45,674 | $ | 984,803 | ||
Acquisition of XXTX with payables | $ | — | $ | 314,290 | ||
Acquisition of XXTX's minority interest with issuance of common stock at fair value | $ | 1,972,717 | $ | — | ||
SOURCE Senmiao Technology Limited
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