Sat. Feb 22nd, 2020

Senmiao Technology Announces Unaudited Financial Results for its Third Fiscal Quarter Ended December 31, 2019 – Yahoo Finance

Senmiao Technology Announces Unaudited Financial Results for its Third Fiscal Quarter Ended December 31, 2019  <font color="#6f6f6f">Yahoo Finance</font>

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.

  • 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
  • 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.”

    $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.

    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.

    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.

    $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.

    $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.

    $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.

    $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.

    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.

    $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. 

    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.

    December 31, 2019, which is being filed with the U.S. Securities and Exchange Commission today.

     

     

    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

    $

     

    Cision

    SOURCE Senmiao Technology Limited

    Source: finance.yahoo.com