CHENGDU, China, Feb. 14, 2020 /PRNewswire/ -- Senmiao Technology
Limited (NASDAQ: AIHS) ("Senmiao"), a provider of automobile
transaction and related services in China, today announced its unaudited financial
results for its third fiscal quarter ended December 31, 2019.
Third Quarter of Fiscal 2020 Highlights
- Total revenues increased by 2,212% year-over-year to
$2,745,579 from $118,736
- Revenue from automobile transaction and related services
business expanded to $13,643,429 in
first nine months of fiscal 2020
- Earnings per share of $0.03
for continuing operations in first nine months of fiscal 2020
versus loss per share of $0.04 in the
same period last year
"The discontinuation of our online peer-to-peer lending
operations will allow us to effectively focus our resources on the
current automobile financing facilitation and transaction business,
which remained profitable through the first nine months of this
fiscal year," commented Xi Wen,
Chairman, Chief Executive Officer and President of Senmiao. "Due to
a general industry year-end slowdown, there was a seasonal decrease
in our facilitation of new automobile purchases this quarter but we
continued to capitalize on strategic opportunities in cities like
Chengdu and Changsha where we are expanding our business.
Looking ahead, in light of the Chinese New Year holidays and the
current coronavirus outbreak in China, we anticipate that the fourth fiscal
quarter will be a challenging one. However, despite extensive
restrictions being put in place to combat the nationwide
coronavirus outbreak, we believe that the long-term market
opportunity for ride-hailing services in China remains compelling. We are developing
ways to assist our ride-hailing drivers contend with the challenges
posed by the outbreak. This is a difficult time for the industry
and our nation, but we are confident that our company will overcome
the challenges in the short-term, continue to expand our automobile
business and create long-term sustainable value for our
shareholders."
Revenues
Total revenue was $2,745,579 for
the quarter ended December 31, 2019,
an increase of $2,626,843, or 2,212%
as compared with the quarter ended December
31, 2018, primarily due to Senmiao's significant shift in
operations to the automobile transaction and related services
business (the "Auto Business"). Total revenue excludes $4,294 in revenue from online lending services
that is now a discontinued business.
Because of the Chinese National Day holiday in October and
general industry year end slowdown, there was a seasonal decrease
in the number of Senmiao's facilitated new automobile purchases for
the three months ended December 31,
2019 as compared with the prior quarters in current year.
However, due to the expansion of the Auto Business in Chengdu and Changsha, Senmiao's revenue increased as
compared with the same period in the prior year.
In response to the changing regulatory environment in
China, Senmiao discontinued
operations of its online peer-to-peer lending business in third
fiscal quarter to proactively restructured operations in order to
position itself for future sustainable growth.
Cost of Revenues
Cost of revenues was $1,901,405
for the quarter ended December 31,
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 $844,174. Gross
profit increased by $725,438 mainly
due to the increase in the number of facilitated new automobile
purchases from the Auto Business.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $1,339,238 for the quarter ended December 31, 2019 as compared to $529,913 during the same period last year,
representing an increase of $809,325.
The increase was mainly attributable to the selling, general and
administrative expenses of $966,771
incurred by the expansion of the Auto Business.
Change in Fair Value of Derivative Liabilities
The change in fair value of derivative liabilities resulted in a
loss $485,400, derived from change of
the fair values between December 31,
2019 and September 30, 2019 of
the warrants issued in Senmiao's registered direct offering in
June 2019.
Net Loss
Total net loss for the quarter ended December 31, 2019 was $5,361,936 as compared to a net loss of
$768,292 during the same period last
year. Net loss from continuing operations and discontinued
operations for the quarter ended December
31, 2019 was $962,700 and
$4,399,236 as compared to a net loss
of $406,631 and $361,661, respectively, during the same period
last year.
Earnings / loss per share
Loss per share for continuing operations was $0.03 and $0.02 and
loss per share for discontinued operations was $0.15 and $0.01,
respectively, for the quarters ended December 31, 2019 and 2018. Earnings per share
was $0.03 for continuing operations
in the nine months ended December 31,
2019 as compared with loss per share of $0.04 in the same period last year. Loss
per share was $0.20 for discontinued
operations in the nine months ended December
31, 2019 as compared with $0.06 in the same period last year.
Financial Position
As of December 31, 2019, Senmiao
had cash and cash equivalents of $1,173,521 as compared to $3,967,980 as of March 31,
2019 for its continuing operations. Senmiao also had cash
and cash equivalents of $9,520 as of
December 31, 2019 as compared to
$1,052,430 as of March 31, 2019 for its discontinued
operations.
For additional related information, please see Senmiao's
Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, 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, 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, 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
the ongoing coronavirus outbreak 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:
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)
|
|
|
|
December
31,
|
|
March
31,
|
|
|
2019
|
|
2019
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,173,521
|
$
|
3,967,980
|
|
Accounts receivable,
net, current portion
|
|
2,009,589
|
|
199,909
|
|
Inventories
|
|
1,526,077
|
|
1,508,244
|
|
Finance lease
receivables, net, current portion
|
|
428,958
|
|
10,254
|
|
Prepayments,
receivables and other assets, net
|
|
4,701,683
|
|
3,787,254
|
|
Escrow receivable due
within one year
|
|
-
|
|
600,000
|
|
Due from related
parties
|
|
107,855
|
|
140,498
|
|
Current assets -
discontinued operations
|
|
920,085
|
|
1,185,016
|
|
|
Total Current
Assets
|
|
10,867,768
|
|
11,399,155
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
|
|
|
Property and
equipment, net
|
|
417,141
|
|
100,680
|
|
Property and
equipment, net - discontinued operations
|
|
13,883
|
|
25,205
|
|
|
Total Property and
equipment, net
|
|
431,024
|
|
125,885
|
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
Right-of-use
assets
|
|
659,961
|
|
-
|
|
Intangible assets,
net
|
|
1,372
|
|
1,627
|
|
Prepayment for
intangible assets
|
|
750,000
|
|
280,000
|
|
Accounts receivable,
noncurrent
|
|
1,090,787
|
|
-
|
|
Finance lease
receivables, net, noncurrent
|
|
748,249
|
|
22,298
|
|
Other assets of
discontinued operations
|
|
161,881
|
|
485,170
|
|
|
Total Other
Assets
|
|
3,412,250
|
|
789,095
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
14,711,042
|
$
|
12,314,135
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Borrowings from
financial institutions
|
$
|
211,248
|
$
|
219,157
|
|
Borrowings from third
parties
|
|
-
|
|
476,765
|
|
Accounts
payable
|
|
55,453
|
|
-
|
|
Advance from
customers
|
|
60,317
|
|
31,776
|
|
Income tax
payable
|
|
26,975
|
|
21,905
|
|
Accrued expenses and
other liabilities
|
|
1,482,933
|
|
962,291
|
|
Due to related
parties and affiliates
|
|
212,144
|
|
415,931
|
|
Lease
liabilities
|
|
209,188
|
|
-
|
|
Derivative
liabilities
|
|
629,848
|
|
-
|
|
Current liabilities
of discontinued operations
|
|
4,954,400
|
|
1,625,779
|
|
|
Total Current
Liabilities
|
|
7,842,506
|
|
3,753,604
|
|
|
|
|
|
|
|
|
Other
Liabilities
|
|
|
|
|
|
Borrowings from
financial institutions, noncurrent
|
|
41,696
|
|
177,789
|
|
Lease liabilities,
noncurrent
|
|
421,109
|
|
-
|
|
|
Total Other
Liabilities
|
|
462,805
|
|
177,789
|
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
|
8,305,311
|
|
3,931,393
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common stock (par
value $0.0001 per share, 100,000,000 shares authorized; 28,839,803
and 25,945,255 shares issued and outstanding at December 31, 2019
and March 31, 2019, respectively)
|
|
2,884
|
|
2,595
|
|
Additional paid-in
capital
|
|
26,835,804
|
|
23,833,112
|
|
Accumulated
deficit
|
|
(19,846,811)
|
|
(15,031,538)
|
|
Accumulated other
comprehensive loss
|
|
(621,957)
|
|
(428,771)
|
|
|
Total Senmiao
Technology Limited Stockholders' Equity
|
|
6,369,920
|
|
8,375,398
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
35,811
|
|
7,344
|
|
|
|
|
|
|
|
|
|
|
Total
Equity
|
|
6,405,731
|
|
8,382,742
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
$
|
14,711,042
|
$
|
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
December 31,
|
|
For the Nine
Months Ended
December 31,
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$
|
2,745,579
|
$
|
118,736
|
$
|
13,643,429
|
$
|
118,736
|
Cost of
revenues
|
|
(1,901,405)
|
|
-
|
|
(10,632,901)
|
|
-
|
Gross
profit
|
|
844,174
|
|
118,736
|
|
3,010,528
|
|
118,736
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,339,238)
|
|
(529,913)
|
|
(3,486,410)
|
|
(1,028,314)
|
|
|
Total operating
expenses
|
|
(1,339,238)
|
|
(529,913)
|
|
(3,486,410)
|
|
(1,028,314)
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(495,064)
|
|
(411,177)
|
|
(475,882)
|
|
(909,578)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Other income
(expense), net
|
|
(37,636)
|
|
10,785
|
|
(53,364)
|
|
10,786
|
|
Interest
expense
|
|
(17,248)
|
|
(6,239)
|
|
(79,593)
|
|
(6,239)
|
|
Change in fair value
of derivative liabilities
|
|
(485,400)
|
|
-
|
|
1,509,406
|
|
-
|
|
|
Total other
income, net
|
|
(540,284)
|
|
4,546
|
|
1,376,449
|
|
4,547
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
(1,035,348)
|
|
(406,631)
|
|
900,567
|
|
(905,031)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefits
(expenses)
|
|
72,648
|
|
-
|
|
(32,950)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
continuing operations, net of applicable income taxes
|
|
(962,700)
|
|
(406,631)
|
|
867,617
|
|
(905,031)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss from
discontinued operations
|
|
(4,399,236)
|
|
(361,661)
|
|
(5,593,627)
|
|
(1,583,630)
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
(5,361,936)
|
|
(768,292)
|
|
(4,726,010)
|
|
(2,488,661)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to noncontrolling interests from continuing
operations
|
|
34,769
|
|
(3,041)
|
|
(89,264)
|
|
(3,041)
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to stockholders
|
$
|
(5,327,167)
|
$
|
(771,333)
|
$
|
(4,815,274)
|
$
|
(2,491,702)
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(5,361,936)
|
$
|
(768,292)
|
$
|
(4,726,010)
|
$
|
(2,488,661)
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
206,432
|
|
(26,063)
|
|
(253,983)
|
|
(132,763)
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
loss
|
|
(5,155,504)
|
|
(794,355)
|
|
(4,979,993)
|
|
(2,621,424)
|
|
|
|
|
|
|
|
|
|
|
|
Less: Total
comprehensive (income) loss attributable to noncontrolling
interests
|
|
30,015
|
|
(3,041)
|
|
28,467
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
loss attributable to stockholders
|
$
|
(5,185,519)
|
$
|
(791,314)
|
$
|
(5,008,460)
|
$
|
(2,621,424)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common stock
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
28,825,281
|
|
25,879,400
|
|
27,733,885
|
|
25,879,400
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share - basic and diluted
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
(0.03)
|
$
|
(0.02)
|
$
|
0.03
|
$
|
(0.04)
|
|
Discontinued
operations
|
$
|
(0.15)
|
$
|
(0.01)
|
$
|
(0.20)
|
$
|
(0.06)
|
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,
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net loss
|
$
|
(4,726,010)
|
$
|
(2,488,661)
|
|
Net loss from
discontinued operations
|
|
(5,593,627)
|
|
(1,583,630)
|
|
|
Net income (loss)
from continuing operations
|
|
867,617
|
|
(905,031)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization of property and equipment
|
|
82,672
|
|
947
|
|
|
|
Amortization of
right-of-use assets
|
|
89,095
|
|
-
|
|
|
|
Amortization of
intangible assets
|
|
197
|
|
14
|
|
|
|
Provision for
doubtful accounts
|
|
228,249
|
|
-
|
|
|
|
Loss on disposal of
equipment
|
|
4,593
|
|
-
|
|
|
|
Change in fair value
of derivative liabilities
|
|
(1,509,406)
|
|
-
|
|
Change in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(2,985,722)
|
|
309
|
|
|
|
Inventories
|
|
(72,278)
|
|
-
|
|
|
|
Prepayments,
receivables and other assets
|
|
(1,226,099)
|
|
(280,402)
|
|
|
|
Finance lease
receivables
|
|
(1,146,021)
|
|
-
|
|
|
|
Accounts
payable
|
|
55,464
|
|
-
|
|
|
|
Advances from
customers
|
|
29,693
|
|
-
|
|
|
|
Income tax
payable
|
|
5,860
|
|
-
|
|
|
|
Accrued expenses and
other liabilities
|
|
548,545
|
|
(3,179)
|
|
|
|
Lease
liabilities
|
|
(80,297)
|
|
-
|
|
|
|
Net cash used in
operating activities from continuing operations
|
|
(5,107,838)
|
|
(1,187,342)
|
|
|
|
Net cash used in
operating activities from discontinued operations
|
|
(1,896,242)
|
|
(1,273,309)
|
|
|
|
|
Net Cash Used in
Operating Activities
|
|
(7,004,080)
|
|
(2,460,651)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
Proceeds from sales
of equipment
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(414,958)
|
|
(688)
|
|
Prepayment of
intangible assets
|
|
(470,000)
|
|
-
|
|
Net cash used in
investing activities from continuing operations
|
|
(884,958)
|
|
(688)
|
|
Net cash provided by
(used in) investing activities from discontinued
operations
|
|
1,822
|
|
(448,575)
|
|
|
|
|
Net Cash Used in
Investing Activities
|
|
(883,136)
|
|
(449,263)
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
Net proceeds from
issuance of common stock in registered direct
offering
|
|
5,142,124
|
|
-
|
|
Net proceeds from
issuance of common stock upon warrants exercised
|
|
111
|
|
-
|
|
Repayments to
stockholders
|
|
(90,000)
|
|
(1,900,000)
|
|
Repayments to third
parties
|
|
(459,635)
|
|
-
|
|
Repayments from
(loans to) related parties
|
|
27,577
|
|
(1,441)
|
|
Borrowings from
related parties and affiliates
|
|
555,616
|
|
290,183
|
|
Repayments to related
parties and affiliates
|
|
(1,554,423)
|
|
-
|
|
Repayments of current
borrowings from financial institutions
|
|
(129,698)
|
|
-
|
|
Repayments of
noncurrent borrowings from financial institutions
|
|
-
|
|
(16,929)
|
|
Release of escrow
receivable
|
|
600,000
|
|
600,000
|
|
Cash acquired from
acquisition
|
|
|
|
213,644
|
|
Net cash provided by
(used in) financing activities from continuing
operations
|
|
4,091,672
|
|
(814,543)
|
|
Net cash provided by
financing activities from discontinued operations
|
|
154,103
|
|
1,974,617
|
|
|
|
|
Net Cash Provided
by Financing Activities
|
|
4,245,775
|
|
1,160,074
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(196,028)
|
|
(100,007)
|
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
(3,837,469)
|
|
(1,849,847)
|
Cash and cash
equivalents, beginning of period
|
|
5,020,510
|
|
11,141,566
|
Cash and cash
equivalents, end of period
|
|
1,183,041
|
|
9,291,719
|
|
|
|
|
|
|
|
|
|
Less: Cash and cash
equivalents from discontinued operations
|
|
(9,520)
|
|
(1,839,722)
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents from continuing operations, end period
|
$
|
1,173,521
|
$
|
7,451,997
|
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
Cash paid for
interest expense
|
$
|
79,593
|
$
|
6,239
|
|
Cash paid for income
tax
|
$
|
-
|
$
|
-
|
Non-cash
Transaction in Investing and Financing Activities
|
|
|
|
|
|
IPO expenses paid by
the Company's stockholders
|
$
|
-
|
$
|
70,687
|
|
Right-of-use assets
obtained in exchange of operating lease liabilities
|
$
|
957,472
|
$
|
-
|
|
Allocation of fair
value of derivative liabilities for issuance of common stock
proceeds
|
$
|
3,150,006
|
$
|
-
|
|
Allocation of fair
value of derivative liabilities to additional paid in capital upon
warrants exercised
|
$
|
1,010,752
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/senmiao-technology-announces-unaudited-financial-results-for-its-third-fiscal-quarter-ended-december-31-2019-301005500.html
SOURCE Senmiao Technology Limited