CHENGDU, China, Nov. 14, 2019 /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 second fiscal quarter ended September 30, 2019.
Second Quarter of Fiscal 2020 Highlights
- Total revenues increased by 8,180% year-over-year to
$5,921,166 from $71,508
- Gross profit increased by 1,595% year-over-year to
$1,211,982 from $71,508
- Earnings per share of $0.04
versus loss per share of $0.03 in
same period last year
"We have continued to capitalize on our late 2018 acquisition
and subsequent development of our automobile transaction and
related services business. Through our business development
efforts, we have taken major steps to restructure our business to
better diversify and streamline our revenue streams as we wind down
our online peer-to-peer lending business, and our efforts have led
to another strong quarterly performance," commented Xi Wen, Chairman, Chief Executive Officer and
President of Senmiao. "With our automobile transaction and
related services business now accounting for almost all of our
revenue, our main focus is to continue to ramp up these operations
as the ride-sharing market in our areas of operation expands,
particularly in the second and third tier cities in China. These developments have placed
our business in an outstanding position as we posted positive
earnings per share this quarter, the first since our listing on the
Nasdaq last year. We believe we have laid the foundation to
continue our growth as we focus on other complimentary
opportunities for expanding our business."
Revenues
Total revenue was $5,921,166 for
the quarter ended September 30, 2019,
an increase of $5,849,658, or 8,180%
as compared with the quarter ended September
30, 2018, primarily due to Senmiao's significant ramp up of
its automobile transaction and related services business (the "Auto
Business").
Revenue from the Auto Business was $5,885,287, accounting for 99.4% of total
revenue. This compares with $2,432,371 in the fourth quarter of the previous
fiscal year and $5,012,563 in the
first quarter of the current fiscal year, reflecting two
consecutive quarters of strong growth in the Auto Business.
Revenue from online lending services decreased by $35,629 during the quarter ended September 30, 2019 as Senmiao formally commenced
the winding down of that business in response to the changing
regulatory environment in China.
Senmiao will no longer generate revenue from the online
lending business. Revenue from online lending services only
accounted for 0.6% of total revenue for the quarter ended
September 30, 2019, a significant
shift from 100% a year ago, as Senmiao proactively restructured
operations in order to position itself for future sustainable
growth.
Cost of Revenues
Cost of revenues was $4,709,184
for the quarter ended September 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 $1,211,982 for
the quarter ended September 30, 2019
as compared to $71,508 during the
same period last year mainly due to the gross profit of
$1,176,103 from the Auto Business,
partially offset by a decrease of $35,629 from online lending services.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $1,738,335 for the quarter ended September 30, 2019 as compared to $782,451 during the same period last year, an
increase of 122%. The increase was mainly attributable to the
selling, general and administrative expenses of $887,173 incurred by the Auto Business.
Change in Fair Value of Derivative Liabilities
The change in fair value of derivative liabilities amounted to
$1,998,202, derived from change of
the fair values between September 30,
2019 and June 30, 2019 of the
warrants issued in Senmiao's registered direct offering which
closed on June 21, 2019.
Net Income
Net income for the quarter ended September 30, 2019 was $1,141,359 as compared to a net loss of
$790,005 during the same period last
year.
Senmiao achieved a net income of $141,365 from its Auto Business, a net loss of
$729,345 from its online lending
services for the quarter ended September 30,
2019, and a gain of $1,998,202
from the change in fair value of derivative liabilities.
Financial Position
As of September 30, 2019, Senmiao
had cash and cash equivalents of $2,538,667 as compared to $5,020,510 as of March 31,
2019.
Recent Developments
On October 17, 2019, the Board of
Directors of Senmiao approved a plan submitted by management to
wind down and discontinue Senmiao's online lending services.
In accordance with this plan, Senmiao has ceased facilitation of
loan transactions on its online lending platform and began to
assume all the outstanding loans from lenders on the platform. The
aggregate balance of the loans Senmiao expects to assume is
approximately $5.6 million. Senmiao
expects to use cash generated from its Auto Business and payments
collected from borrowers to fully repay all platform lenders by
December 31, 2020. As part of
the plan, Senmiao expects to continue to employ certain employees
who currently work on its online lending services, primarily the
information technology staff, to provide a website design and
development service for companies located in Chengdu City. Senmiao also plans to transfer
approximately ten online lending services employees to focus on its
Auto Business, and further expects to terminate certain employees
of its online lending services by December
31, 2020, but is unable to determine the number at this
time.
For additional related information, please see Senmiao's
Quarterly Report on Form 10-Q for the period ended September 30, 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. Until October 2019, Senmiao also operated an online
lending platform that connects Chinese investors with individual
and small-to-medium-sized enterprise borrowers. 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 and winding down, respectively of Senmiao's Auto
Business and online lending services, 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 winding down of Senmiao's
online lending business; 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:
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)
|
|
|
|
September
30,
|
|
March
31,
|
|
|
2019
|
|
2019
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,538,667
|
|
$
|
5,020,510
|
Accounts receivable,
net
|
|
|
1,472,094
|
|
|
326,181
|
Inventories
|
|
|
2,195,382
|
|
|
1,508,244
|
Finance lease
receivables, net, current portion
|
|
|
371,264
|
|
|
10,254
|
Prepayments,
receivables and other assets, net
|
|
|
4,744,183
|
|
|
3,793,468
|
Escrow receivable due
within one year
|
|
|
-
|
|
|
600,000
|
Due from related
parties
|
|
|
136,590
|
|
|
140,498
|
Total Current
Assets
|
|
|
11,458,180
|
|
|
11,399,155
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
425,257
|
|
|
125,885
|
|
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
|
Right-of-use
assets
|
|
|
842,413
|
|
|
-
|
Intangible assets,
net
|
|
|
33,409
|
|
|
296,091
|
Prepayment for
intangible assets
|
|
|
889,891
|
|
|
470,706
|
Accounts receivable,
net
|
|
|
1,262,912
|
|
|
-
|
Finance lease
receivables, net
|
|
|
733,269
|
|
|
22,298
|
Total Other
Assets
|
|
|
3,761,894
|
|
|
789,095
|
|
|
|
|
|
|
|
Total
Assets
|
|
$
|
15,645,331
|
|
$
|
12,314,135
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Borrowings from
financial institutions
|
|
$
|
205,775
|
|
$
|
219,157
|
Borrowings from third
parties
|
|
|
-
|
|
|
476,765
|
Accounts
payable
|
|
|
162,142
|
|
|
-
|
Advance from
customers
|
|
|
100,533
|
|
|
38,996
|
Income tax
payable
|
|
|
105,254
|
|
|
21,905
|
Accrued expenses and
other liabilities
|
|
|
1,727,219
|
|
|
1,500,803
|
Due to
stockholders
|
|
|
125,428
|
|
|
1,080,047
|
Due to related
parties and affiliates
|
|
|
668,697
|
|
|
415,931
|
Lease
liabilities
|
|
|
323,564
|
|
|
-
|
Derivative
liabilities
|
|
|
193,569
|
|
|
-
|
Total Current
Liabilities
|
|
|
3,612,181
|
|
|
3,753,604
|
|
|
|
|
|
|
|
Other
Liabilities
|
|
|
|
|
|
|
Borrowings from
financial institutions, noncurrent
|
|
|
72,724
|
|
|
177,789
|
Lease liabilities,
non current
|
|
|
448,327
|
|
|
-
|
Total Other
Liabilities
|
|
|
521,051
|
|
|
177,789
|
|
|
|
|
|
|
|
Total
liabilities
|
|
|
4,133,232
|
|
|
3,931,393
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Common stock (par
value $0.0001 per share, 100,000,000
shares authorized; 28,691,356 and 25,945,255 shares
issued and outstanding at September 30, 2019 and
March 31, 2019, respectively)
|
|
|
2,869
|
|
|
2,595
|
Additional paid-in
capital
|
|
|
26,786,683
|
|
|
23,833,112
|
Accumulated
deficit
|
|
|
-14,519,644
|
|
|
-15,031,538
|
Accumulated other
comprehensive loss
|
|
|
-763,605
|
|
|
-428,771
|
Total
Stockholders' Equity
|
|
|
11,506,303
|
|
|
8,375,398
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
5,796
|
|
|
7,344
|
|
|
|
|
|
|
|
Total
Equity
|
|
|
11,512,099
|
|
|
8,382,742
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
|
$
|
15,645,331
|
|
$
|
12,314,135
|
SENMIAO TECHNOLOGY
LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS)
|
(Expressed in U.S.
dollar, except for the number of shares)
|
|
|
|
For the Three
Months Ended
|
|
|
For the Six Months
Ended
|
September
30,
|
September
30,
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues
|
|
$
|
5,921,166
|
|
$
|
71,508
|
|
|
$
|
11,015,606
|
|
$
|
196,534
|
Cost of
revenues
|
|
|
-4,709,184
|
|
|
-
|
|
|
|
-8,731,496
|
|
|
-
|
Gross
profit
|
|
|
1,211,982
|
|
|
71,508
|
|
|
|
2,284,110
|
|
|
196,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
-1,738,335
|
|
|
-782,451
|
|
|
|
-3,191,407
|
|
|
-1,754,720
|
Amortization of
intangible assets
|
|
|
-11,414
|
|
|
-86,791
|
|
|
|
-26,568
|
|
|
-173,088
|
Impairments of
intangible assets and goodwill
|
|
|
-266,534
|
|
|
-
|
|
|
|
-266,534
|
|
|
-
|
Total operating
expenses
|
|
|
-2,016,283
|
|
|
-869,242
|
|
|
|
-3,484,509
|
|
|
-1,927,808
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
-804,301
|
|
|
-797,734
|
|
|
|
-1,200,399
|
|
|
-1,731,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense)
income, net
|
|
|
-22,779
|
|
|
7,729
|
|
|
|
9,462
|
|
|
10,905
|
Interest
expense
|
|
|
-25,306
|
|
|
-
|
|
|
|
-62,345
|
|
|
-
|
Change in fair value
of derivative liabilities
|
|
|
1,998,202
|
|
|
-
|
|
|
|
1,994,806
|
|
|
-
|
Total other
income, net
|
|
|
1,950,117
|
|
|
7,729
|
|
|
|
1,941,923
|
|
|
10,905
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
|
1,145,816
|
|
|
-790,005
|
|
|
|
741,524
|
|
|
-1,720,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expenses
|
|
|
-4,457
|
|
|
-
|
|
|
|
-105,598
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
before non-controlling interests
|
|
|
1,141,359
|
|
|
-790,005
|
|
|
|
635,926
|
|
|
-1,720,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
-51,105
|
|
|
-
|
|
|
|
-124,033
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to stockholders
|
|
$
|
1,090,254
|
|
$
|
-790,005
|
|
|
$
|
511,893
|
|
$
|
-1,720,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
1,141,359
|
|
$
|
-790,005
|
|
|
$
|
635,926
|
|
$
|
-1,720,369
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
|
-374,192
|
|
|
-57,965
|
|
|
|
-460,415
|
|
|
-106,700
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income (loss)
|
|
|
767,167
|
|
|
-847,970
|
|
|
|
175,511
|
|
|
-1,827,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Total
comprehensive income attributable to noncontrolling
interests
|
|
-46,200
|
|
|
-
|
|
|
|
-1,548
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive
income (loss) attributable to stockholders
|
$
|
813,367
|
|
$
|
-847,970
|
|
|
$
|
177,059
|
|
$
|
-1,827,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
28,237,413
|
|
|
25,879,400
|
|
|
|
27,185,205
|
|
|
25,879,400
|
Diluted
|
|
|
28,237,430
|
|
|
25,879,400
|
|
|
|
27,185,212
|
|
|
25,879,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.04
|
|
$
|
-0.03
|
|
|
$
|
0.02
|
|
$
|
-0.07
|
Diluted
|
|
$
|
0.04
|
|
$
|
-0.03
|
|
|
$
|
0.02
|
|
$
|
-0.07
|
SENMIAO TECHNOLOGY
LIMITED
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Expressed in U.S.
dollar, except for the number of shares)
|
|
|
|
For the Six Months
Ended
|
September
30,
|
|
|
2019
|
|
|
2018
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
635,926
|
|
|
$
|
-1,720,369
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization of property and equipment
|
|
|
56,016
|
|
|
|
4,897
|
Amortization of
right-of-use assets
|
|
|
90,800
|
|
|
|
-
|
Amortization of
intangible assets
|
|
|
26,568
|
|
|
|
173,088
|
Provision for
doubtful accounts
|
|
|
166,558
|
|
|
|
-
|
Impairment loss of
intangible assets
|
|
|
266,534
|
|
|
|
-
|
Loss on disposal of
an equipment
|
|
|
4,621
|
|
|
|
-
|
Change in fair value
of derivative liabilities
|
|
|
-1,994,806
|
|
|
|
-
|
Change in operating
assets and liabilities
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
-2,606,829
|
|
|
|
-40,229
|
Inventories
|
|
|
-804,853
|
|
|
|
-
|
Prepayments,
receivables and other assets
|
|
|
-1,311,125
|
|
|
|
31,418
|
Finance lease
receivables
|
|
|
-1,109,277
|
|
|
|
-
|
Accounts
payable
|
|
|
167,472
|
|
|
|
-
|
Advances from
customers
|
|
|
66,019
|
|
|
|
-
|
Income tax
payable
|
|
|
87,469
|
|
|
|
-
|
Accrued expenses and
other liabilities
|
|
|
319,448
|
|
|
|
-30,524
|
Lease
liabilities
|
|
|
-124,945
|
|
|
|
-
|
Net Cash Used in
Operating Activities
|
|
|
-6,064,404
|
|
|
|
-1,581,719
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
-384,695
|
|
|
|
-27,271
|
Purchase of
intangible assets
|
|
|
-
|
|
|
|
-42,472
|
Prepayment of
intangible assets
|
|
|
-470,000
|
|
|
|
-
|
Net Cash Used in
Investing Activities
|
|
|
-854,695
|
|
|
|
-69,743
|
|
|
|
|
|
|
|
|
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
|
|
96
|
|
|
|
-
|
Proceeds borrowed
from stockholders
|
|
|
-
|
|
|
|
1,574,617
|
Repayments to
stockholders
|
|
|
-870,249
|
|
|
|
-1,500,000
|
Repayments to third
parties
|
|
|
-462,370
|
|
|
|
-
|
Borrowings from
related parties and affiliates
|
|
|
1,177,651
|
|
|
|
-
|
Repayments to related
parties and affiliates
|
|
|
-838,949
|
|
|
|
-
|
Repayments of current
borrowings from financial institutions
|
|
|
-97,306
|
|
|
|
-
|
Release of escrow
receivable
|
|
|
600,000
|
|
|
|
600,000
|
Net Cash Provided
by Financing Activities
|
|
|
4,650,997
|
|
|
|
674,617
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
-213,741
|
|
|
|
-98,647
|
|
|
|
|
|
|
|
|
Net decrease in cash
and cash equivalents
|
|
|
-2,481,843
|
|
|
|
-1,075,492
|
Cash and cash
equivalents, beginning of period
|
|
|
5,020,510
|
|
|
|
11,141,566
|
Cash and cash
equivalents, end of period
|
|
$
|
2,538,667
|
|
|
$
|
10,066,074
|
|
|
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
|
|
Cash paid for
interest expense
|
|
$
|
62,345
|
|
|
$
|
-
|
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
|
$
|
960,908
|
|
|
$
|
-
|
Intangible assets
received from prepayment
|
|
$
|
40,457
|
|
|
$
|
-
|
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
|
$
|
961,631
|
|
|
$
|
-
|
View original
content:http://www.prnewswire.com/news-releases/senmiao-technology-announces-unaudited-financial-results-for-its-second-fiscal-quarter-ended-september-30-2019-300958314.html
SOURCE Senmiao Technology Limited