Le Lézard
Classified in: Transportation, Business, Covid-19 virus
Subjects: ERN, CCA

Senmiao Technology Announces Unaudited Financial Results for First Quarter of Fiscal Year 2021


CHENGDU, China, Aug. 19, 2020 /PRNewswire/ -- Senmiao Technology Limited (NASDAQ: AIHS) ("Senmiao"), a provider of automobile transaction and related services (the "Auto Business") targeting the online ride-hailing industry in China, today announced its unaudited financial results for the quarter ended June 30, 2020.

First Quarter of Fiscal 2021 Highlights

"During the quarter, we focused on ways to adjust the growth strategy of our Auto Business as ride-hailing drivers continued to be adversely affected in the aftermath of COVID-19," commented Xi Wen, Chairman, Chief Executive Officer and President of Senmiao. "We shifted our focus during the quarter to a new opportunity, namely the provision of short-term car rentals. We have noticed an increasing trend in demand for short-term rentals since the end of 2019, so we capitalized on this by reallocating resources to better utilize automobiles that are being surrendered by ride-hailing drivers that continue to face financial pressures as a result of COVID-19. Creating this additional revenue stream has also helped to mitigate the drop in online ride-hailing automobile sales in Chengdu and Changsha as we plan for a recovery of our Auto Business in the second half of 2020. So far in the second quarter of this fiscal year (our quarter ending September 30), we have signed a strategic cooperation agreement with one of the largest auto dealer groups in southwest China to increase access to electric vehicles, which we hope will significantly improve our sales channels and enhance our service options. In an effort to further strengthen our balance sheet, we also secured an investment of approximately US$7 million from a fundamental investor and successfully raised net proceeds of US$6 million through an underwritten public offering.  We remain confident that we will emerge from this pandemic in a better position to expand our Auto Business as more cities return to normalcy. We will continue to look for additional strategic ways to accelerate the expansion of our Auto Business as we aim to drive long-term sustainable value for our shareholders."

Revenues

Total revenue was $1,146,916 for the quarter ended June 30, 2020, a decrease of $3,865,647, or 77% as compared with the quarter ended June 30, 2019, primarily due to the decreased number of facilitated new automobile purchases as a result of COVID-19.

Cost of Revenues

Cost of revenues was $621,241 for the quarter ended June 30, 2020 as compared with $4,022,312 during the same period last year, representing a decrease of $3,401,071, or 85%, primarily due to the decrease in the number of automobiles sold.

Gross Profit

Gross profit was $525,675 for the quarter ended June 30, 2020. Gross profit decreased by $464,576, or 47% as compared with the same period last year, mainly due to the decrease in the number of facilitated new automobile purchases. However, gross profit generated from sales of automobiles increased by $49,755 due to having more favorable purchase price options from automobile dealers. Gross profit generated from operating lease revenues from automobile rentals increased by $119,529 due to the increased number of automobiles delivered under operating lease.

 

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $2,139,440 for the quarter ended June 30, 2020 as compared with $875,433 during the same period last year, representing an increase of $1,264,007, or 144%. The increase was attributable to the increase in amortization of automobiles which were tendered to us but have not been sub-leased or sold, salary and employee benefits and other expenses as a result of the expansion of the Auto Business since our fiscal 2019.

Change in Fair Value of Derivative Liabilities

The change in fair value of derivative liabilities resulted in a loss $282,980, derived from change of the fair values between June 30, 2020 and March 31, 2020 of the warrants issued in Senmiao's registered direct offering in June 2019.

Net Loss

Total net loss for the quarter ended June 30, 2020 was $2,370,184 as compared to a net loss of $505,432 during the same period last year. Net loss from continuing operations and discontinued operations for the quarter ended June 30, 2020 was $2,284,530 and $85,654 as compared to a net loss of $26,329 and $479,103, respectively, during the same period last year.

Loss per share

Loss per share for continuing operations was $0.07 and $0.00 and loss per share for discontinued operations was $0.00 and $0.02, respectively, for the quarters ended June 30, 2020 and 2019.

Financial Position

As of June 30, 2020, Senmiao had cash and cash equivalents of $516,598 as compared with $833,888 as of March 31, 2020 for its continuing operations. After giving effect to our underwritten offering in August, 2020, our cash and cash equivalents is now approximately $6.7 million and our pro forma stockholders' equity is approximately $7.1 million.

Impact of COVID-19

The COVID-19 outbreak had materially adversely affected Senmiao's business operations, financial condition and operating results in the quarter ended June 30, 2020, including but not limited to, decrease in revenues, slower collection of accounts receivable 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 during the remainder of its current fiscal year (ending March 31, 2021).

Further information regarding Senmiao's results of operations for the period ending June 30, 2020 can be found in the Senmiao's Quarterly Report on Form 10-Q which will be filed with the Securities and Exchange Commission.

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, and 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; 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: edom333@ihongsen.com
Phone: +86 28 6155 4399

Investor Relations:
Rene Vanguestaine
Christensen
Email: rvanguestaine@ChristensenIR.com
Phone: +86 178 1749 0483

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,



2020


2020




(Unaudited)





ASSETS







Current assets







Cash and cash equivalents

$

516,598


$

833,888


Accounts receivable, net, current portion


788,722



660,645


Inventories


1,097,680



1,000,675


Finance lease receivables, net, current portion


548,438



459,110


Prepayments, other receivables and other assets, net


2,384,606



2,798,780


Due from related parties


46,342



26,461


Current assets - discontinued operations


702,465



826,580


Total current assets


6,084,851



6,606,139









Property and equipment, net







Property and equipment, net


523,870



469,201


Property and equipment, net - discontinued operations


9,146



11,206


Total property and equipment, net


533,016



480,407









Other assets







Operating lease right-of-use assets, net


437,971



473,661


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


202,762



236,305


Financing lease right-of-use assets, net


6,424,127



5,440,362


Intangible assets, net


756,871



777,621


Accounts receivable, net, noncurrent


733,687



882,078


Finance lease receivables, net, noncurrent


670,344



734,145


Total other assets


9,225,762



8,544,172









Total assets

$

15,843,629


$

15,630,718









LIABILITIES AND EQUITY (DEFICIENCY)







Current liabilities







Borrowings from financial institutions

$

330,682


$

226,753


Accounts payable


7,686



4,065


Advances from customers


133,031



90,349


Income tax payable


16,366



16,267


Accrued expenses and other liabilities


2,896,859



2,008,391


Due to related parties and affiliates


150,526



152,679


Operating lease liabilities


145,724



149,582


Operating lease liabilities - related parties


143,596



151,655


Financing lease liabilities


3,995,859



3,473,967


Derivative liabilities


625,510



342,530


Current liabilities - discontinued operations


4,458,892



4,516,292


Total current liabilities


12,904,731



11,132,530









Other liabilities







Borrowings from financial institutions, noncurrent


52,226



64,221


Operating lease liabilities, noncurrent


220,197



297,167


Operating lease liabilities, noncurrent - related parties


79,648



88,349


Financing lease liabilities, noncurrent


3,472,937



2,576,094


Total other liabilities


3,825,008



3,025,831









Total liabilities


16,729,739



14,158,361









Commitments and contingencies














Stockholders' equity (deficiency)







Common stock (par value $0.0001 per share, 100,000,000 shares authorized; 29,008,818
shares issued and outstanding at June 30, 2020 and March 31, 2020)


2,901



2,901


Additional paid-in capital


27,013,137



27,013,137


Accumulated deficit


(25,685,348)



(23,704,863)


Accumulated other comprehensive loss


(498,074)



(507,478)


Total Senmiao Technology Limited stockholders' equity


832,616



2,803,697









Non-controlling interests


(1,718,726)



(1,331,340)









Total (deficiency) equity


(886,110)



1,472,357









Total liabilities and equity

$

15,843,629


$

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 June 30,


2020


2019


(Unaudited)


(Unaudited)

Revenues

$

1,146,916


$

5,012,563

Cost of revenues


(621,241)



(4,022,312)

Gross profit


525,675



990,251







Operating expenses






Selling, general and administrative expenses


(2,139,440)



(875,433)

Bad debt expense


(128,612)



(12,738)

Total operating expenses


(2,268,052)



(888,171)







(Loss) income from operations


(1,742,377)



102,080







Other income (expense)






Other (expense) income, net


(6,076)



13,167

Interest expense


(20,648)



(37,039)

Interest expense on finance leases


(226,177)



-

Change in fair value of derivative liabilities


(282,980)



(3,396)

Total other expense, net


(535,881)



(27,268)







(Loss) income before income taxes


(2,278,258)



74,812







Income tax expense


(6,272)



(101,141)







Net loss from continuing operations


(2,284,530)



(26,329)







Net loss from discontinued operations, net of applicable income taxes


(85,654)



(479,103)







Net loss


(2,370,184)



(505,432)







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


389,699



(72,928)







Net loss attributable to stockholders

$

(1,980,485)


$

(578,360)







Net loss

$

(2,370,184)


$

(505,432)







Other comprehensive income (loss)






Foreign currency translation adjustment


11,717



(86,223)







Comprehensive loss


(2,358,467)



(591,655)







Total comprehensive loss (income) attributable to non-controlling interests


387,386



(44,652)







Total comprehensive loss attributable to stockholders

$

(1,971,081)


$

(636,307)







Weighted average number of common stock






Basic and diluted


29,008,818



26,121,433







Loss per share - basic and diluted






Continuing operations

$

(0.07)


$

(0.00)

Discontinued operations

$

(0.00)


$

(0.02)

 

 

 

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,


2020


2019


(Unaudited)


(Unaudited)

Cash Flows from Operating Activities:






Net loss

$

(2,370,184)


$

(505,432)

Net loss from discontinued operations


(85,654)



(479,103)

Net loss from continuing operations


(2,284,530)



(26,329)

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






Depreciation and amortization of property and equipment


58,085



22,672

Amortization of right-of-use assets


880,785



16,123

Amortization of intangible assets


20,814



12

Bad debt expense


128,612



14,726

Change in fair value of derivative liabilities


282,980



3,396

Change in operating assets and liabilities






Accounts receivable


(94,912)



(1,935,065)

Inventories


(10,647)



(1,068,512)

Prepayments, other receivables and other assets


365,804



(472,506)

Finance lease receivables


(74,350)



(825,500)

Accounts payable


3,609



448,926

Advances from customers


42,437



71,885

Income tax payable


60



96,593

Accrued expenses and other liabilities


564,708



429,892

Operating lease liabilities


(81,842)



(33,035)

Operating lease liabilities - related parties


(18,502)



-

Net cash used in operating activities from continuing operations


(216,889)



(3,256,722)

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


183,832



(505,086)

Net Cash Used in Operating Activities


(33,057)



(3,761,808)







Cash Flows from Investing Activities:






Purchases of property and equipment


(4,891)



(375,077)

Prepayment of intangible assets


-



(320,000)

Net cash used in investing activities from continuing operations


(4,891)



(695,077)

Net cash used in investing activities from discontinued operations


(70)



-

Net Cash Used in Investing Activities


(4,961)



(695,077)







Cash Flows from Financing Activities:






Net proceeds from issuance of common stock in registered direct offering


-



5,142,124

Repayments of borrowing from third parties


-



(322,406)

Borrowings from financial institutions


122,406



-

Loan to related party


(19,693)



-

Repayments to related parties and affiliates


(4,155)



(39,376)

Repayments of current borrowings from financial institutions


(23,739)



(47,703)

Principal payments of finance lease liabilities


(376,670)



-

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


(301,851)



4,732,639

Net cash provided by financing activities from discontinued operations


7,233



208,274

Net Cash Provided by (Used in) Financing Activities


(294,618)



4,940,913







Effect of exchange rate changes on cash and cash equivalents


10,239



(66,413)







Net (decrease) increase in cash and cash equivalents


(322,397)



417,615

Cash and cash equivalents, beginning of period


844,028



5,020,510

Cash and cash equivalents, end of period


521,631



5,438,125







Less: Cash and cash equivalents from discontinued operations


(5,033)



(547,602)







Cash and cash equivalents from continuing operations, end of period

$

516,598


$

4,890,523







Supplemental Cash Flow Information






Cash paid for interest expense

$

20,648


$

33,878

Cash paid for income tax

$

-


$

-

Non-cash Transaction in Investing and Financing Activities






IPO expenses paid by the Company's stockholders

$

-


$

70,687

Assumption of net liabilities of Hunan Ruixi, excluding cash and cash equivalents

$

-


$

149,680

Prepayment in exchange of intangible assets

$

-


$

41,033

Recognition of right-of-use assets and lease liabilities

$

1,780,027


$

386,039

Acquisition of equipment through prepayment and financing lease receivables offset

$

85,455


$

-

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

$

-


$

4,152,751

 

 

SOURCE Senmiao Technology Limited


These press releases may also interest you

at 13:45
Target Auction Company is excited to announce the sale of Tennessee's largest home, a magnificent waterfront estate known as "Villa Collina." Target Auction Company President, Dewey Jacobs said this spectacular property was scheduled for auction but...

at 13:40
Rayonier Advanced Materials Inc. plans to release its third quarter 2020 earnings on Wednesday, November 4, 2020 after the market closes. Rayonier Advanced Materials will host a conference call and live webcast at 9:30 a.m. ET on Thursday, November...

at 13:35
Syntellis Performance Solutions, a leading provider of enterprise performance management (EPM) software, data and analytics solutions, announced that nine healthcare organizations have recently chosen Axiom Rolling Forecasting, joining the more than...

at 13:33
Lattice Exchange (LTX), a decentralized platform that aims to advance digital-asset trading, announced today that digital asset institutional funds such as GDA (Global Digital Assets), Hillrise Capital, and Moonrock Capital are leaning in to support...

at 13:31
Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Vaxart, Inc. between June 25, 2020 to July 25, 2020, inclusive (the "Class Period"), of the important October 23, 2020 lead plaintiff deadline in the case....

at 13:30
Ari Zoldan, CEO of Quantum Media Group, LLC, a marketing and media agency based in New York City, has been accepted into the Forbes Business Council, the foremost growth and networking organization for successful business owners and leaders...



News published on 19 august 2020 at 16:15 and distributed by: