CHENGDU, China, Aug. 14, 2019 /PRNewswire/ -- Senmiao Technology
Limited (NASDAQ: AIHS) ("Senmiao"), a provider of automobile
transaction and related services and an operator of an online
lending marketplace connecting Chinese investors with individual
and small-to-medium-sized enterprise borrowers in China, today announced its unaudited financial
results for the quarter ended June 30,
2019.
First Quarter of Fiscal 2020 Highlights
- Total revenues increased by 3,975% year-over-year to
$5,094,440 from $125,026
- Gross profit increased by 758% year-over-year to
$1,072,128 from $125,026
- Loss per share decreased by 50% year-over -year to
$0.02 from $0.04
"We had a great start to our fiscal year 2020 with a strong
performance from our automobile transaction and related services
business during the first quarter. Thanks to the Ruixi acquisition
that gave us a unique opportunity to capitalize on the growing
ride-sharing market in 2nd and 3rd tier cities in China, like Chengdu and Changsha, we are very pleased with the
continued momentum in automobile transaction and related services,"
commented Xi Wen, Chairman, Chief
Executive Officer and President of Senmiao. "With revenues more
than doubled and turning a profit from the prior quarter, our
automobile transaction and related services continued to drive the
overall growth of both top- and bottom-lines of the Company and our
strategic transformation from a single revenue stream online
lending marketplace to a more diversified financial services
company. We are optimistic about the growth prospects of our
business and looking forward to improving financial performances in
coming quarters."
Revenues
Total revenues were $5,094,440 for
the quarter ended June 30, 2019, an
increase of $4,969,414, or 3,975% as
compared with the quarter ended June 30,
2018, primarily due to Senmiao's significant ramp up of its
automobile transaction and related services business.
Revenue from automobile transaction and related services was
$5,012,563, accounting for 98.4% of
total revenue. This compares with $2,432,371 in the fourth quarter of the previous
year when Senmiao commenced its automobile transaction and related
services business in late November
2018.
Revenue from online lending services decreased by $43,149 during the quarter ended June 30, 2019, as compared to the quarter ended
June 30, 2018, as Senmiao continued
to focus on its compliance review and did not actively seek to
expand its online lending business. Revenue from online lending
services accounted for 1.6% of total revenue, down from 100.0% a
year ago.
Cost of Revenues
Cost of revenues was $4,022,312
for the quarter ended June 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 $1,072,128 for
the quarter ended June 30, 2019
compared to $125,026 during the same
period last year mainly due to the increase in gross profit of
$990,251 from automobile transaction
and related services, partially offset by a decrease of
$43,149 from online lending
services.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $1,453,074 for the quarter ended June 30, 2019 compared to $972,269 during the same period last year, an
increase of 49.5%. The increase was attributable to the selling,
general and administrative expenses of $573,692 incurred by the automobile transaction
and related services.
Net Loss
Net loss for the quarter ended June 30,
2019 was $505,432, compared to
a net loss of $930,364 during the
same period last year.
Senmiao achieved a net income of $290,351 from its automobile transaction and
related services and a net loss of $453,270 from its online lending services for the
quarter ended June 30, 2019.
Financial Position
As of June 30, 2019, Senmiao had
cash and cash equivalents of $5,438,125 as compared to $5,020,510 as of March 31,
2019.
Recent Developments
On June 21, 2019, Senmiao closed a
registered direct public offering of common stock and warrants
pursuant to its registration statement on Form S-3, as
supplemented, for total gross proceeds of $6.0 million. The offering price of the shares
sold in the offering was $3.38 per
share. After deducting placement agent fees and offering expenses,
the aggregate net proceeds received by Senmiao totaled
approximately $5.1 million.
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. Senmiao also operates an online lending platform, which
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 of Senmiao 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 automobile transaction and
related services and online lending services, the Chinese
ride-sharing and automobile financial leasing markets, the
Chinese online marketplace lending industry 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 automobile transaction and
related services may not be realized; 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:
Julie
Zhu
Email: julie@ihongsen.com
Phone: +86 181-9085-0098
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)
|
|
|
June
30,
|
|
March
31,
|
|
|
2019
|
|
2019
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,438,125
|
$
|
5,020,510
|
|
Accounts receivable,
net
|
|
1,849,418
|
|
326,181
|
|
Inventories
|
|
2,536,026
|
|
1,508,244
|
|
Finance lease
receivables, net, current portion
|
|
270,156
|
|
10,254
|
|
Prepayments,
receivables and other assets, net
|
|
4,164,628
|
|
3,793,468
|
|
Escrow receivable due
within one year
|
|
600,000
|
|
600,000
|
|
Due from related
parties
|
|
150,595
|
|
140,498
|
|
Total Current Assets
|
|
15,008,948
|
|
11,399,155
|
|
|
|
|
|
|
Property and
equipment, net
|
|
470,408
|
|
125,885
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
|
Right-of-use
assets
|
|
342,549
|
|
-
|
|
Intangible assets,
net
|
|
315,130
|
|
296,091
|
|
Prepayment for
intangible assets
|
|
745,628
|
|
470,706
|
|
Accounts
receivable
|
|
389,980
|
|
-
|
|
Finance lease
receivables, net
|
|
581,980
|
|
22,298
|
|
Total Other Assets
|
|
2,375,267
|
|
789,095
|
|
|
|
|
|
|
Total
Assets
|
$
|
17,854,623
|
$
|
12,314,135
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Borrowings from
financial institutions
|
$
|
214,213
|
$
|
219,157
|
|
Borrowings from third
parties
|
|
145,628
|
|
476,765
|
|
Accounts
payable
|
|
446,109
|
|
-
|
|
Advance from
customers
|
|
106,796
|
|
38,996
|
|
Income tax
payable
|
|
117,400
|
|
21,905
|
|
Accrued expenses and
other liabilities
|
|
1,857,802
|
|
1,500,803
|
|
Due to
stockholders
|
|
1,031,159
|
|
1,080,047
|
|
Due to related
parties and affiliates
|
|
551,962
|
|
415,931
|
|
Lease
liabilities
|
|
191,340
|
|
-
|
|
Derivative
liabilities
|
|
4,156,147
|
|
-
|
|
Total Current Liabilities
|
|
8,818,556
|
|
3,753,604
|
|
|
|
|
|
|
Other
Liabilities
|
|
|
|
|
|
Borrowings from
financial institutions, noncurrent
|
|
126,375
|
|
177,789
|
|
Lease liabilities,
non current
|
|
129,232
|
|
-
|
|
Total Other Liabilities
|
|
255,607
|
|
177,789
|
|
|
|
|
|
|
Total
liabilities
|
|
9,074,163
|
|
3,931,393
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common stock (par
value $0.0001 per share, 100,000,000 shares authorized;
27,726,616 and 25,945,255 shares issued and outstanding at June 30,
2019 and March 31, 2019, respectively)
|
|
2,773
|
|
2,595
|
|
Additional paid-in
capital
|
|
24,822,307
|
|
23,833,112
|
|
Accumulated
deficit
|
|
(15,609,898)
|
|
(15,031,538)
|
|
Accumulated other
comprehensive loss
|
|
(486,718)
|
|
(428,771)
|
|
Total Stockholders' Equity
|
|
8,728,464
|
|
8,375,398
|
|
|
|
|
|
Noncontrolling
interests
|
|
51,996
|
|
7,344
|
|
|
|
|
|
|
Total Equity
|
|
8,780,460
|
|
8,382,742
|
|
|
|
|
|
|
Total
Liabilities and Equity
|
$
|
17,854,623
|
$
|
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 June 30
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
Revenues
|
$
|
5,094,440
|
$
|
125,026
|
Cost of
revenues
|
|
(4,022,312)
|
|
-
|
Gross
profit
|
|
1,072,128
|
|
125,026
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(1,453,074)
|
|
(972,269)
|
|
Amortization of
intangible assets
|
|
(15,152)
|
|
(86,297)
|
|
Total operating
expenses
|
|
(1,468,226)
|
|
(1,058,566)
|
|
|
|
|
|
Loss from
operations
|
|
(396,098)
|
|
(933,540)
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
Other (expense)
income, net
|
|
32,242
|
|
3,176
|
|
Interest
expense
|
|
(37,039)
|
|
-
|
|
Change in fair value
of derivative liabilities
|
|
(3,396)
|
|
-
|
|
Total other income
(expense), net
|
|
(8,193)
|
|
3,176
|
|
|
|
|
|
Loss before income
taxes
|
|
(404,291)
|
|
(930,364)
|
|
|
|
|
|
Income tax
expenses
|
|
(101,141)
|
|
-
|
|
|
|
|
|
Net
loss
|
|
(505,432)
|
|
(930,364)
|
|
|
|
|
|
Less: Net income
attributable to noncontrollling interests
|
|
(72,928)
|
|
-
|
|
|
|
|
|
Net loss
attributable to stockholders
|
$
|
(578,360)
|
$
|
(930,364)
|
|
|
|
|
|
Net
loss
|
$
|
(505,432)
|
$
|
(930,364)
|
|
|
|
|
|
Other
comprehensive loss
|
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(86,223)
|
|
(48,735)
|
|
|
|
|
|
Comprehensive
loss
|
|
(591,655)
|
|
(979,099)
|
|
|
|
|
|
Less: Total
comprehensive income attributable to noncontrolling
interests
|
|
44,652
|
|
-
|
|
|
|
|
|
Total comprehensive
loss attributable to stockholders
|
$
|
(636,307)
|
$
|
(979,099)
|
|
|
|
|
|
Weighted average
number of common stock
|
|
|
|
|
|
Basic and
diluted
|
|
26,121,433
|
|
25,879,400
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
Basic and
diluted
|
$
|
(0.02)
|
$
|
(0.04)
|
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,
|
|
|
2019
|
|
2018
|
|
|
(Unaudited)
|
|
(Unaudited)
|
Cash Flows from
Operating Activities:
|
|
|
|
|
|
Net
loss
|
$
|
(505,432)
|
$
|
(930,364)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and amortization of property and equipment
|
|
25,522
|
|
1,882
|
|
Amortization of right-of-use assets
|
|
41,326
|
|
|
|
Amortization of intangible assets
|
|
15,152
|
|
86,297
|
|
Provision for doubtful accounts
|
|
31,638
|
|
-
|
|
Change in fair value of derivative liabilities
|
|
3,396
|
|
-
|
|
Change in operating
assets and liabilities
|
|
|
|
|
|
Accounts receivable
|
|
(1,949,620)
|
|
(44,967)
|
|
Inventories
|
|
(1,068,512)
|
|
-
|
|
Prepayments, receivables and other assets
|
|
(475,354)
|
|
24,241
|
|
Finance lease receivables
|
|
(825,500)
|
|
-
|
|
Accounts payable
|
|
448,927
|
|
-
|
|
Advances from customers
|
|
69,114
|
|
-
|
|
Income tax payable
|
|
96,593
|
|
-
|
|
Accrued expenses and other liabilities
|
|
389,180
|
|
(54,959)
|
|
Lease liabilities
|
|
(58,238)
|
|
-
|
|
Net
Cash Used in Operating Activities
|
|
(3,761,808)
|
|
(917,870)
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(375,077)
|
|
(11,918)
|
|
Purchase of
intangible assets
|
|
-
|
|
(21,951)
|
|
Prepayment of
intangible assets
|
|
(320,000)
|
|
-
|
|
Net
Cash Used in Investing Activities
|
|
(695,077)
|
|
(33,869)
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
Net proceeds from
issuance of common stock in registered direct
offering
|
|
5,142,124
|
|
-
|
|
Proceeds borrowed
from stockholders
|
|
-
|
|
605,056
|
|
Repayments to
stockholders
|
|
-
|
|
(500,784)
|
|
Borrowings from third
parties
|
|
(322,406)
|
|
-
|
|
Borrowings from
related parties and affiliates
|
|
168,898
|
|
-
|
|
Repayments of current
borrowings from financial institutions
|
|
(47,703)
|
|
-
|
|
Net
Cash Provided by Financing Activities
|
|
4,940,913
|
|
104,272
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(66,413)
|
|
(42,412)
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
417,615
|
|
(889,879)
|
Cash and cash
equivalents, beginning of period
|
|
5,020,510
|
|
11,141,566
|
Cash and cash
equivalents, end of period
|
$
|
5,438,125
|
$
|
10,251,687
|
|
|
|
|
|
Supplemental Cash
Flow Information
|
|
|
|
|
|
Cash paid for
interest expense
|
$
|
37,039
|
$
|
-
|
|
Cash paid for income
tax
|
$
|
-
|
$
|
-
|
Non-cash
Transaction in Investing and Financing Activities
|
|
|
|
|
|
Unpaid property and
equipment purchases
|
$
|
-
|
$
|
6,526
|
|
IPO expenses paid by
the Company's stockholders
|
$
|
-
|
$
|
70,687
|
|
Right-of-use assets
obtained in exchange of operating lease liabilities
|
$
|
386,039
|
$
|
-
|
|
Intangible assets
received from prepayment
|
$
|
41,033
|
$
|
-
|
|
Allocation of fair
value of derivative liabilities from issuance of common stock
proceeds
|
$
|
4,152,751
|
$
|
-
|
View original
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SOURCE Senmiao Technology Limited