ACROFAN

Senmiao Technology Announces Unaudited Financial Results for First Quarter of Fiscal Year 2020

Published : Thursday, August 15, 2019, 4:05 am
ACROFAN=PRNewswire | mediainquiries@prnewswire.com | SNS

Record Revenues and Profitability for the Automobile Transaction and Related Services Business

CHENGDU, China, Aug. 15, 2019 /PRNewswire/ -- Senmiao Technology Limited  (NASDAQ: AIHS) ("Senmiao"), a provider of automobile transaction and related services and an operator of an online lending marketplace connecting Chinese investors with individual and small-to-medium-sized enterprise borrowers in China, today announced its unaudited financial results for the quarter ended June 30, 2019.

First Quarter of Fiscal 2020 Highlights

  • Total revenues increased by 3,975% year-over-year to $5,094,440 from $125,026
  • Gross profit increased by 758% year-over-year to $1,072,128 from $125,026
  • Loss per share decreased by 50% year-over -year to $0.02 from $0.04

"We had a great start to our fiscal year 2020 with a strong performance from our automobile transaction and related services business during the first quarter. Thanks to the Ruixi acquisition that gave us a unique opportunity to capitalize on the growing ride-sharing market in 2nd and 3rd tier cities in China, like Chengdu and Changsha, we are very pleased with the continued momentum in automobile transaction and related services," commented Xi Wen, Chairman, Chief Executive Officer and President of Senmiao. "With revenues more than doubled and turning a profit from the prior quarter, our automobile transaction and related services continued to drive the overall growth of both top- and bottom-lines of the Company and our strategic transformation from a single revenue stream online lending marketplace to a more diversified financial services company. We are optimistic about the growth prospects of our business and looking forward to improving financial performances in coming quarters."

Revenues

Total revenues were $5,094,440 for the quarter ended June 30, 2019, an increase of $4,969,414, or 3,975% as compared with the quarter ended June 30, 2018, primarily due to Senmiao's significant ramp up of its automobile transaction and related services business.

Revenue from automobile transaction and related services was $5,012,563, accounting for 98.4% of total revenue. This compares with $2,432,371 in the fourth quarter of the previous year when Senmiao commenced its automobile transaction and related services business in late November 2018.

Revenue from online lending services decreased by $43,149 during the quarter ended June 30, 2019, as compared to the quarter ended June 30, 2018, as Senmiao continued to focus on its compliance review and did not actively seek to expand its online lending business. Revenue from online lending services accounted for 1.6% of total revenue, down from 100.0% a year ago.

Cost of Revenues

Cost of revenues was $4,022,312 for the quarter ended June 30, 2019. Senmiao did not incur cost of revenues during the same period last year as it only provided online lending services which did not incur any cost of revenues.

Gross Profit

Gross profit was $1,072,128 for the quarter ended June 30, 2019 compared to $125,026 during the same period last year mainly due to the increase in gross profit of $990,251 from automobile transaction and related services, partially offset by a decrease of $43,149 from online lending services.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $1,453,074 for the quarter ended June 30, 2019 compared to $972,269 during the same period last year, an increase of 49.5%. The increase was attributable to the selling, general and administrative expenses of $573,692 incurred by the automobile transaction and related services.

Net Loss

Net loss for the quarter ended June 30, 2019 was $505,432, compared to a net loss of $930,364 during the same period last year.

Senmiao achieved a net income of $290,351 from its automobile transaction and related services and a net loss of $453,270 from its online lending services for the quarter ended June 30, 2019.

Financial Position

As of June 30, 2019, Senmiao had cash and cash equivalents of $5,438,125 as compared to $5,020,510 as of March 31, 2019.

Recent Developments

On June 21, 2019, Senmiao closed a registered direct public offering of common stock and warrants pursuant to its registration statement on Form S-3, as supplemented, for total gross proceeds of $6.0 million. The offering price of the shares sold in the offering was $3.38 per share. After deducting placement agent fees and offering expenses, the aggregate net proceeds received by Senmiao totaled approximately $5.1 million.

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, guarantee and other automobile transaction services. Senmiao also operates an online lending platform, which connects Chinese investors with individual and small-to-medium-sized enterprise borrowers. For more information about Senmiao, please visit: https://www.senmiaotech.com.

Cautionary Note Regarding Forward-Looking Statements

This press release of Senmiao 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 automobile transaction and related services and online lending services, the Chinese ride-sharing and automobile  financial leasing markets, the Chinese online marketplace lending industry and Senmiao's plans, objectives, goals, strategies, and performance, 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 automobile transaction and related services may not be realized; Senmiao's future business development; product and service demand and acceptance; 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:
Julie Zhu
Email: julie@ihongsen.com
Phone: +86 181-9085-0098

Investor Relations:
Linda Bergkamp
Christensen
Email: lbergkamp@ChristensenIR.com
Phone: +1 480 614 3004

 

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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



June 30,


March 31,



2019


2019



(Unaudited)



ASSETS





Current Assets






Cash and cash equivalents

$

5,438,125

$

5,020,510


Accounts receivable, net


1,849,418


326,181


Inventories 


2,536,026


1,508,244


Finance lease receivables, net, current portion


270,156


10,254


Prepayments, receivables and other assets, net 


4,164,628


3,793,468


Escrow receivable due within one year


600,000


600,000


Due from related parties 


150,595


140,498


    Total Current Assets


15,008,948


11,399,155







Property and equipment, net


470,408


125,885






Other Assets






Right-of-use assets


342,549


-


Intangible assets, net


315,130


296,091


Prepayment for intangible assets 


745,628


470,706


Accounts receivable 


389,980


-


Finance lease receivables, net 


581,980


22,298


    Total Other Assets


2,375,267


789,095







        Total Assets

$

17,854,623

$

12,314,135






LIABILITIES AND EQUITY





Current Liabilities






Borrowings from financial institutions

$

214,213

$

219,157


Borrowings from third parties 


145,628


476,765


Accounts payable 


446,109


-


Advance from customers 


106,796


38,996


Income tax payable 


117,400


21,905


Accrued expenses and other liabilities 


1,857,802


1,500,803


Due to stockholders 


1,031,159


1,080,047


Due to related parties and affiliates 


551,962


415,931


Lease liabilities


191,340


-


Derivative liabilities


4,156,147


-


    Total Current Liabilities


8,818,556


3,753,604







Other Liabilities






Borrowings from financial institutions, noncurrent


126,375


177,789


Lease liabilities, non current 


129,232


-


    Total Other Liabilities


255,607


177,789







        Total liabilities


9,074,163


3,931,393






Commitments and Contingencies










Stockholders' Equity






Common stock (par value $0.0001 per share, 100,000,000 shares authorized;  27,726,616 and 25,945,255 shares issued and outstanding at June 30, 2019 and March 31, 2019, respectively)


2,773


2,595


Additional paid-in capital


24,822,307


23,833,112


Accumulated deficit 


(15,609,898)


(15,031,538)


Accumulated other comprehensive loss


(486,718)


(428,771)


    Total Stockholders' Equity


8,728,464


8,375,398






Noncontrolling interests


51,996


7,344







    Total Equity 


8,780,460


8,382,742







        Total Liabilities and Equity

$

17,854,623

$

12,314,135

 

 

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



2019


2018



(Unaudited)


(Unaudited)






Revenues

$

5,094,440

$

125,026

Cost of revenues


(4,022,312)


-

Gross profit


1,072,128


125,026






Operating expenses






Selling, general and administrative expenses


(1,453,074)


(972,269)


Amortization of intangible assets


(15,152)


(86,297)


      Total operating expenses


(1,468,226)


(1,058,566)






Loss from operations


(396,098)


(933,540)






Other income (expense)






Other (expense) income, net


32,242


3,176


Interest expense


(37,039)


-


Change in fair value of derivative liabilities


(3,396)


-


      Total other income (expense), net


(8,193)


3,176






Loss before income taxes


(404,291)


(930,364)






Income tax expenses


(101,141)


-






Net loss


(505,432)


(930,364)






Less: Net income attributable to noncontrollling interests 


(72,928)


-






Net loss attributable to stockholders

$

(578,360)

$

(930,364)






Net loss

$

(505,432)

$

(930,364)






Other comprehensive loss






Foreign currency translation adjustment


(86,223)


(48,735)






Comprehensive loss


(591,655)


(979,099)






Less: Total comprehensive income attributable to noncontrolling interests


44,652


-






Total comprehensive loss attributable to stockholders

$

(636,307)

$

(979,099)






Weighted average number of common stock






Basic and diluted


26,121,433


25,879,400






Loss per share






Basic and diluted

$

(0.02)

$

(0.04)

 

 

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, 



2019


2018



(Unaudited)


(Unaudited)

Cash Flows from Operating Activities:






Net loss

$

(505,432)

$

(930,364)


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






    Depreciation and amortization of property and equipment


25,522


1,882


    Amortization of right-of-use assets


41,326




    Amortization of intangible assets


15,152


86,297


    Provision for doubtful accounts


31,638


-


    Change in fair value of derivative liabilities


3,396


-


Change in operating assets and liabilities






    Accounts receivable


(1,949,620)


(44,967)


    Inventories 


(1,068,512)


-


    Prepayments, receivables and other assets


(475,354)


24,241


    Finance lease receivables 


(825,500)


-


    Accounts payable


448,927


-


    Advances from customers


69,114


-


    Income tax payable 


96,593


-


    Accrued expenses and other liabilities 


389,180


(54,959)


    Lease liabilities


(58,238)


-


        Net Cash Used in Operating Activities


(3,761,808)


(917,870)






Cash Flows from Investing Activities:






Purchases of property and equipment 


(375,077)


(11,918)


Purchase of intangible assets 


-


(21,951)


Prepayment of intangible assets 


(320,000)


-


        Net Cash Used in Investing Activities


(695,077)


(33,869)


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