CHENGDU, China, July 15, 2022 /PRNewswire/ — Senmiao Technology Limited (“Senmiao” or the “Company”) (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, 2022.
Please note that the following financial results reflect the deconsolidation of the financial figures of Senmiao’s former variable interest entities (“VIEs”) Sichuan Senmiao Ronglian Technology Co., Ltd. (“Sichuan Senmiao”), Sichuan Jinkailong Automobile Leasing Co., Ltd. (“Jinkailong”) and Chengdu Youlu Technology Ltd. (“Youlu”), as of March 31, 2022. Jinkailong’s and Youlu’s business results have now been classified as discontinued operations but were previously classified under Automobile Transaction and Related Services.
Fiscal 2022 Financial and Operating Highlights
- Total revenues of $4.9 million from continuing operations, a 124.5% increase from $2.2 million in the prior fiscal year
- From October 23, 2020, the date Senmiao launched its online ride-hailing platform, to March 31, 2022, approximately 20 million rides were completed through the platform (including orders completed on the platform operated by Senmiao and orders completed on partner platforms, such as Meituan) with fares paid by riders totaling $63.3 million.
- Net loss from continuing operations of $5.6 million, compared to $7.5 million in the prior fiscal year
Management Commentary
Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, “Despite ongoing challenges presented by the pandemic environment in China, we are pleased with the significant growth we have achieved in our automobile transaction and related service and online ride-hailing platform services businesses, which drove our impressive top line results for fiscal year 2022. With our equity investee company, we leased a total of over 2,300 vehicles in fiscal 2022, compared to 1,200 in fiscal 2021, which resulted in a 666% year-over-year increase in rental income. We believe our continuous efforts in shifting our business focus to these new lines of business have begun to exhibit remarkable results, and we are optimistic about their future growth potential, which will continue to fuel top line growth for Senmiao as we continue to explore new regional markets. As of March 31, 2022, our platform has helped facilitate approximately 17 million rides since launch, with an additional 3 million rides completed on our partners’ platforms. Our ride-hailing services are now available in 20+ cities throughout China.”
Mr. Wen continued, “During fiscal year 2022, Senmiao strengthened our partnership base, establishing and expanding upon relationships with companies that possess a significant national presence and the resources to help us enter new local regions. This has enabled us to significantly grow our main businesses. We believe we are in a strong position to continue growing our online ride-hailing platform, which we anticipate will have a positive impact on our auto rental business as our replicable model of offering a flexible automobile rental option has been well received by our online ride-hailing drivers. With that in mind, Senmiao plans to provide a series of product solutions to increase the number of our automobiles for operating leases. We will remain focused on becoming a leading financing and servicing company and a significant player in the online ride-hailing market in China.”
Financial Review
Revenues
Total revenues from continuing operations were $4.9 million for the year ended March 31, 2022, a 124.5% increase from $2.2 million in the prior fiscal year. This increase was largely due to increased contributions from operating lease revenues from automobile rentals and online ride-hailing platform services.
During the year ended March 31, 2022, Senmiao continued to shift its business focus to automobile rental options for ride-hailing drivers while developing its online ride-hailing platform services business. As a result, the automobile rental business generated operating lease revenues of $1.7 million for the year ended March 31, 2022, compared to $0.2 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 $2.7 million, a 195.1% increase from $0.9 million in the prior fiscal year.
Cost of Revenues
Cost of revenues from continuing operations increased to $6.5 million for the year ended March 31, 2022, from $2.0 million in the prior fiscal year, primarily due to increased expenses related to costs of automobiles under operating leases and direct expense and technical service fees related to Senmiao’s online ride-hailing platform.
Gross Loss (Profit)
Gross loss from continuing operations was $1.6 million for the year ended March 31, 2022, compared to gross profit from continuing operations of $0.2 million in the prior fiscal year, due to the significant increase in cost of revenues as a result of the rapid expansion of the Company’s automobile leasing and online ride-hailing platform services businesses. Senmiao leased and sub-leased approximately 400 automobiles to online ride-haling drivers through its former VIE Jinkailong during the year ended March 31, 2022. Rental income of approximately $1.3 million from Jinkailong was eliminated in the consolidated financial statements while sub-leasing income from these automobiles of approximately $1.8 million was recorded in loss of discontinued operations.
Selling, General and Administrative Expenses
Selling, general and administrative expenses for continuing operations increased to $9.5 million for the year ended March 31, 2022, compared to $5.9 million in the prior fiscal year. The increase was primarily due to increased salary and employee benefit expenses as a result of hiring additional staff, increased office rental expense and charges, and increase in advertising and promotion expenses related to the online ride-hailing platform.
Net Loss
Net loss from continuing operations for the year ended March 31, 2022, was $5.6 million, compared to $7.5 million in the prior fiscal year. The year-over-year improvement was primarily due to an $8.7 million increase in the fair value change of derivative liabilities related to warrants issued in the Company’s previous offerings, offset by the increase in the loss from operations of $5.6 million.
Loss per Share
Loss per share for continuing operations was approximately $1.66 based on a weighted average number of basic and diluted common stock of 5.7 million, compared to approximately $1.65 based on a weighted average number of basic and diluted common stock of 3.9 million.
On April 5, 2022, Senmiao announced a 1-for-10 reverse stock split with trading to begin on a split-adjusted basis at the market open on April 6, 2022. Weighted average number of basic and diluted common stock numbers noted herein were given retroactive effect to account for the 1-for-10 reverse stock split.
Results from Discontinued Operations
For the year ended March 31, 2022, results from discontinued operations (primarily from Senmiao’s former VIE Jinkailong as noted above) and the gain from their deconsolidation are as follows:
|
For the year ended March 31, |
||
|
2022 |
2021 |
|
|
Revenues |
$6,830,116 |
$3,978,847 |
|
Cost of revenues |
$(5,183,806) |
$(3,985,413) |
|
Gross profit (loss) |
$1,646,310 |
$(6,566) |
|
Selling, general and administrative expenses |
$(4,139,800) |
$(4,455,967) |
|
Loss from discontinued operations, net of applicable income taxes |
$(2,747,209) |
$(5,187,214) |
|
Net gain from deconsolidation of VIEs – discontinued operations |
$10,975,101 |
– |
|
Gain (loss) from discontinued operations |
$8,227,892 |
$(5,187,214) |
Financial Position
As of March 31, 2022, Senmiao had cash and cash equivalents of $1.2 million, compared to $4.3 million as of March 31, 2021, for its continuing operations. Total stockholders’ equity was $8.1 million as of March 31, 2022, compared to $5.9 million as of March 31, 2021.
Further information regarding Senmiao’s results of operations for the fiscal year ended March 31, 2022, can be found in Senmiao’s Annual Report on Form 10-K, which will be filed with the Securities and Exchange Commission today.
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.
Carolyne Sohn, Vice President
+1 415-568-2255
csohn@equityny.com
In China
Lucy Ma, Associate
+86 10 5661 7012
lma@equityny.com
© 2022 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, |
|||||||
|
2022 |
2021 |
|||||||
|
ASSETS |
||||||||
|
Current assets |
||||||||
|
Cash, and cash equivalents |
$ |
1,185,221 |
$ |
4,340,529 |
||||
|
Accounts receivable, net, current portion |
418,022 |
502,031 |
||||||
|
Inventories |
286,488 |
127,933 |
||||||
|
Finance lease receivables, net, current portion |
314,264 |
541,605 |
||||||
|
Prepayments, other receivables and other assets, net |
2,713,208 |
2,660,083 |
||||||
|
Due from related parties |
682,335 |
— |
||||||
|
Current assets – discontinued operations |
— |
2,720,825 |
||||||
|
Total current assets |
5,599,538 |
10,893,006 |
||||||
|
Property and equipment, net |
||||||||
|
Property and equipment, net |
5,658,773 |
3,251,331 |
||||||
|
Property and equipment, net – discontinued operations |
— |
454,408 |
||||||
|
Total property and equipment, net |
5,658,773 |
3,705,739 |
||||||
|
Other assets |
||||||||
|
Operating lease right-of-use assets, net |
109,621 |
233,751 |
||||||
|
Operating lease right-of-use assets, net, related parties |
515,906 |
580,367 |
||||||
|
Financing lease right-of-use assets, net |
305,933 |
577,079 |
||||||
|
Intangible assets, net |
959,551 |
968,131 |
||||||
|
Goodwill |
— |
135,388 |
||||||
|
Accounts receivable, net, non-current |
69 |
61,943 |
||||||
|
Finance lease receivables, net, non-current |
92,980 |
473,472 |
||||||
|
Due from a related party, noncurrent |
6,635,746 |
— |
||||||
|
Other assets – discontinued operations |
— |
4,674,403 |
||||||
|
Total other assets |
8,619,806 |
7,704,534 |
||||||
|
Total assets |
$ |
19,878,117 |
$ |
22,303,279 |
||||
|
LIABILITIES, MEZZANINE EQUITY AND EQUITY |
||||||||
|
Current liabilities |
||||||||
|
Borrowings from financial institutions |
$ |
145,542 |
$ |
— |
||||
|
Accounts payable |
14,446 |
44,769 |
||||||
|
Advances from customers |
120,629 |
110,173 |
||||||
|
Accrued expenses and other liabilities |
2,444,367 |
2,873,227 |
||||||
|
Due to related parties and affiliates |
11,682 |
82,909 |
||||||
|
Operating lease liabilities |
50,177 |
109,813 |
||||||
|
Operating lease liabilities – related parties |
330,781 |
243,726 |
||||||
|
Financing lease liabilities |
304,557 |
358,135 |
||||||
|
Derivative liabilities |
2,215,204 |
1,278,926 |
||||||
|
Current liabilities – discontinued operations |
528,426 |
11,677,266 |
||||||
|
Total current liabilities |
6,165,811 |
16,778,944 |
||||||
|
Other liabilities |
||||||||
|
Operating lease liabilities, non-current |
47,910 |
95,886 |
||||||
|
Operating lease liabilities, non-current – related parties |
226,896 |
341,549 |
||||||
|
Financing lease liabilities, non-current |
1,376 |
218,944 |
||||||
|
Deferred tax liability |
46,386 |
44,993 |
||||||
|
Other liabilities – discontinued operations |
— |
2,250,393 |
||||||
|
Total other liabilities |
322,568 |
2,951,765 |
||||||
|
SENMIAO TECHNOLOGY LIMITED |
||||||||
|
CONSOLIDATED BALANCE SHEETS (CONTINUED) |
||||||||
|
(Expressed in U.S. dollars, except for the number of shares) |
||||||||
|
March 31, 2022 |
March 31, 2021 |
|||||||
|
Total liabilities |
$ |
6,488,379 |
$ |
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 and |
820,799 |
— |
||||||
|
Stockholders’ equity |
||||||||
|
Common stock (par value $0.0001 per share, 10,000,000 shares authorized; 6,186,783 |
630 |
498 |
||||||
|
Additional paid-in capital |
42,803,033 |
40,759,807 |
||||||
|
Accumulated deficit |
(34,601,545) |
(34,064,921) |
||||||
|
Accumulated other comprehensive loss |
(109,454) |
(838,671) |
||||||
|
Total Senmiao Technology Limited stockholders’ equity |
8,092,664 |
5,856,713 |
||||||
|
Non-controlling interests |
4,476,276 |
(3,284,143) |
||||||
|
Total equity |
12,568,939 |
2,572,570 |
||||||
|
Total liabilities and equity |
$ |
19,878,117 |
$ |
22,303,279 |
||||
*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 share and per share amounts) |
|||||||||
|
For the Year Ended |
|||||||||
|
2022 |
2021 |
||||||||
|
Revenues |
$ |
4,913,102 |
$ |
2,188,840 |
|||||
|
Cost of revenues |
(6,511,031) |
(1,984,079) |
|||||||
|
Gross profit (loss) |
(1,597,929) |
204,761 |
|||||||
|
Operating expenses |
|||||||||
|
Selling, general and administrative expenses |
(9,525,408) |
(5,905,579) |
|||||||
|
Provision for doubtful accounts, net of recovery |
(235,279) |
(299,658) |
|||||||
|
Impairments of inventories |
(60,398) |
— |
|||||||
|
Impairments of long-lived assets and goodwill |
(142,974) |
(10,953) |
|||||||
|
Total operating expenses |
(9,964,059) |
(6,216,190) |
|||||||
|
Loss from operations |
(11,561,988) |
(6,011,429) |
|||||||
|
Other income (expense) |
|||||||||
|
Other income (expense), net |
(107,444) |
301,269 |
|||||||
|
Interest expense |
(5,893) |
— |
|||||||
|
Interest expense on finance leases |
(55,844) |
(46,518) |
|||||||
|
Change in fair value of derivative liabilities |
6,951,482 |
(1,710,415) |
|||||||
|
Issuance cost incurred for issuing series A convertible preferred stock |
(821,892) |
— |
|||||||
|
Total other income (expense), net |
5,960,409 |
(1,455,664) |
|||||||
|
Loss before income taxes |
(5,601,579) |
(7,467,093) |
|||||||
|
Income tax expense |
(4,566) |
(8,332) |
|||||||
|
Net loss from continuing operations |
(5,606,145) |
(7,475,425) |
|||||||
|
Discontinued operations: |
|||||||||
|
Loss from discontinued operations, net of applicable income taxes |
(2,747,209) |
(5,187,214) |
|||||||
|
Net gain from deconsolidation of VIEs – discontinued operations |
10,975,101 |
— |
|||||||
|
Gain (loss) from discontinued operations |
8,227,892 |
(5,187,214) |
|||||||
|
Net income (loss) |
2,621,747 |
(12,662,639 |
|||||||
|
Net (income) loss attributable to non-controlling interests from continuing operations |
(3,872,645) |
970,019 |
|||||||
|
Net loss attributable to non-controlling interests from discontinued operations |
714,274 |
1,332,562 |
|||||||
|
Net loss attributable to stockholders |
$ |
(536,624) |
$ |
(10,360,058) |
|||||
|
Net income (loss) |
$ |
2,621,747 |
$ |
(12,662,639) |
|||||
|
Other comprehensive income (loss) |
|||||||||
|
Foreign currency translation adjustment |
64,470 |
(314,669) |
|||||||
|
Comprehensive income (loss) |
2,686,217 |
(12,977,308) |
|||||||
|
Less: Total comprehensive income (loss) attributable to noncontrolling interests |
3,142,520 |
(2,286,057) |
|||||||
|
Total comprehensive loss attributable to stockholders |
$ |
(456,303) |
$ |
(10,691,251) |
|||||
|
SENMIAO TECHNOLOGY LIMITED |
|||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (CONTINUED) |
|||||||||||
|
(Expressed in U.S. dollars, except for share and per share amounts) |
|||||||||||
|
For the Year Ended March 31, |
|||||||||||
|
2022 |
2021 |
||||||||||
|
Weighted average number of common stock |
|||||||||||
|
Basic and diluted |
5,726,997 |
3,943,089 |
|||||||||
|
Earnings (loss) per share – basic and diluted |
|||||||||||
|
Continuing operations |
$ |
(1.66) |
$ |
(1.65) |
|||||||
|
Discontinued operations |
$ |
1.56 |
$ |
(0.98) |
|||||||
|
SENMIAO TECHNOLOGY LIMITED |
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Expressed in U.S. dollars, except for the number of shares) |
||||||||
|
For the Year Ended |
||||||||
|
2022 |
2021 |
|||||||
|
Cash Flows from Operating Activities: |
||||||||
|
Net income (loss) |
$ |
2,621,747 |
$ |
(12,662,639) |
||||
|
Net income (loss) from discontinued operations |
8,227,892 |
(5,187,214) |
||||||
|
Net loss from continuing operations |
(5,606,145) |
(7,475,425) |
||||||
|
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||
|
Depreciation and amortization of property and equipment |
956,400 |
85,530 |
||||||
|
Stock based compensation expense |
653,000 |
445,000 |
||||||
|
Issuance cost incurred for issuing series A convertible preferred stock |
821,892 |
– |
||||||
|
Amortization of right-of-use assets |
955,443 |
398,292 |
||||||
|
Amortization of intangible assets |
160,831 |
107,765 |
||||||
|
Provision for doubtful accounts, net of recovery |
235,279 |
299,658 |
||||||
|
Impairments of inventories |
60,398 |
– |
||||||
|
Impairments of long-lived assets |
142,974 |
10,953 |
||||||
|
Gain on disposal of equipment |
– |
(425) |
||||||
|
Change in fair value of derivative liabilities |
(6,951,482) |
1,710,415 |
||||||
|
Change in operating assets and liabilities |
||||||||
|
Accounts receivable |
4,456 |
162,828 |
||||||
|
Inventories |
(260,464) |
172,626 |
||||||
|
Prepayments, other receivables and other assets |
28,254 |
(1,366,724) |
||||||
|
Finance lease receivables |
634,103 |
348,919 |
||||||
|
Accounts payable |
(31,434) |
(6,067) |
||||||
|
Advances from customers |
6,678 |
47,895 |
||||||
|
Income tax payable |
– |
(168) |
||||||
|
Accrued expenses and other liabilities |
(377,965) |
2,123,010 |
||||||
|
Operating lease liabilities |
(240,051) |
(64,701) |
||||||
|
Operating lease liabilities – related parties |
(228,281) |
(195,519) |
||||||
|
Net cash used in operating activities from continuing operations |
(9,036,114) |
(3,196,138) |
||||||
|
Net cash used in operating activities from discontinued operations |
(123,167) |
(739,929) |
||||||
|
Net Cash used in Operating Activities |
(9,159,281) |
(3,936,067) |
||||||
|
Cash Flows from Investing Activities: |
||||||||
|
Purchases of property and equipment |
(3,223,992) |
(2,293,415) |
||||||
|
Purchases of intangible assets |
(141,730) |
(25,347) |
||||||
|
Cash released upon termination of a VIE |
(193) |
– |
||||||
|
Cash acquired from XXTX, net of cash paid to XXTX[1] |
– |
8,065 |
||||||
|
Net cash used in investing activities from continuing operations |
(3,365,915) |
(2,310,697) |
||||||
|
Net cash used in investing activities from discontinued operations |
(111,210) |
(200,165) |
||||||
|
Net Cash Used in Investing Activities |
(3,477,125) |
(2,510,862) |
||||||
|
Cash Flows from Financing Activities: |
||||||||
|
Net proceeds from issuance of common stock and warrants in a registered direct offering |
5,771,053 |
5,743,905 |
||||||
|
Net proceeds from issuance of common stock and warrants in an underwritten public |
– |
5,261,297 |
||||||
|
Net proceeds from issuance of common stock upon warrants exercised |
22,015 |
683,046 |
||||||
|
Net proceeds from issuance of series A convertible preferred stock and warrants in a |
4,369,937 |
– |
||||||
|
Net proceeds from exercise of underwriters’ over-allotment option |
– |
837,000 |
||||||
|
Borrowings from a financial institution |
183,390 |
– |
||||||
|
Loan to related parties |
– |
(101,142) |
||||||
|
SENMIAO TECHNOLOGY LIMITED |
||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED) |
||||||||
|
(Expressed in U.S. dollars, except for the number of shares) |
||||||||
|
For the Year Ended |
||||||||
|
2021 |
2020 |
|||||||
|
Repayments to related parties and affiliates |
(117,761) |
(37,445) |
||||||
|
Repayments of current borrowings from financial institutions |
(39,613) |
– |
||||||
|
Principal payments of finance lease liabilities |
(433,611) |
(2,230,765) |
||||||
|
Net cash provided by financing activities from continuing operations |
9,755,410 |
10,155,896 |
||||||
|
Net cash provided by financing activities from discontinued operations |
– |
103,881 |
||||||
|
Net Cash Provided by Financing Activities |
9,755,410 |
10,259,777 |
||||||
|
Effect of exchange rate changes on cash and cash equivalents |
(381,858) |
(208,800) |
||||||
|
Net (decrease) increase in cash and cash equivalents |
(3,262,854) |
3,604,048 |
||||||
|
Cash and cash equivalents, beginning of year |
4,448,075 |
844,027 |
||||||
|
Cash and cash equivalents, end of year |
1,185,221 |
4,448,075 |
||||||
|
Less: Cash and cash equivalents from discontinued operations |
– |
(107,546) |
||||||
|
Cash and cash equivalents from continuing operations, end of year |
$ |
1,185,221 |
$ |
4,340,529 |
||||
|
Supplemental Cash Flow Information |
||||||||
|
Cash paid for interest expense |
$ |
5,893 |
$ |
45,764 |
||||
|
Non-cash Transaction in Investing and Financing Activities |
||||||||
|
Recognition of right-of-use assets and lease liabilities |
$ |
273,555 |
$ |
3,785,526 |
||||
|
Recognition of right-of-use assets and lease liabilities, related parties |
$ |
181,620 |
$ |
– |
||||
|
Recognition of other receivables from Jinkailong upon deconsolidation |
$ |
7,298,208 |
– |
|||||
|
Acquisition of equipment through prepayment and financing lease |
$ |
– |
$ |
941,263 |
||||
|
Allocation of fair value of derivative liabilities for issuance of common stock |
$ |
7,932,341 |
$ |
997,193 |
||||
|
Allocation of fair value of derivative liabilities to additional paid in capital upon warrants exercised |
$ |
45,674 |
$ |
1,771,213 |
||||
|
Acquisition of XXTX with payables |
$ |
– |
$ |
317,835 |
||||
|
Acquisition of XXTX’s minority interest with issuance of common stock |
$ |
1,972,717 |
$ |
– |
||||
[1] XXTX is the entity associated with Senmiao’s Xixingtianxia ride-hailing platform.
