CHENGDU, China, July 3, 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 financial results
for the fiscal fourth quarter and fiscal year ended March 31, 2019.
Fourth Quarter of Fiscal Year 2019 Highlights
- Total revenues increased by 1,477.6% year-over-year to
$2,514,672 from $159,399
- Revenues from automobile transaction and related services
accounted for 96.7% while revenue from online lending services
accounted for 3.3% of total revenues, reflecting a positive
transition of Senmiao's primary business model away from the highly
regulated peer-to-peer lending sector in China
- Gross profit increased by 340.7% year-over-year to $702,485 from $159,399
- Net loss decreased by 76.5% year-over-year to $2,053,864 from $8,747,832
- Loss per share decreased by $0.32
year-over -year to $0.08 from
$0.40
- Sold 212 automobiles, facilitated and serviced 259 new
automobile purchase transactions and provided management and
guarantee services to over 1,000 automobiles
Full Year of Fiscal Year 2019 Highlights
- Total revenues increased by 490.2% year-over-year to
$2,921,063 from $494,897
- Revenues from automobile transaction and related services
accounted for 87.3% while revenue from online lending services
accounted for 12.7% of total revenues
- Gross profit increased by 124.1% year-over-year to $1,108,876 from $494,897
- Net loss decreased by 53.9% year-over-year to $4,542,525 from $9,858,972
Xi Wen, Chairman, Chief Executive
Officer and President of Senmiao, stated "With total revenues
increasing by 1,477.6% to more than $2.5
million and gross profit increasing by 340.7% to
$0.7 million, both record high since
our inception in 2017, our financial results for the fourth quarter
of fiscal year 2019 marked the positive commencement and expansion
of our new automobile transaction business and serve as a
validation of our transformation from an online lending marketplace
to a more diversified financial service company in China. Our
automobile transaction and related services business (which we
entered as a result of our acquisition of Hunan Ruixi Financial
Leasing Co., Ltd. (or Hunan Ruixi) in November 2018) contributed 96.7% and 88.3% of
total revenues and gross profit, respectively, in the fourth
quarter, making it our primary business segment, and we expect this
trend to continue as we diversify away from our peer-to-peer
lending business, which became subject to significant regulation
and governmental scrutiny in China
over the last year".
"The acquisition of Hunan Ruixi has allowed us to capitalize on
the growing ride-sharing market in second and third-tier cities in
China, like Chengdu. Looking
ahead, we expect the automobile transaction and related services
business to continue to drive significant growth in both revenues
and gross profit during 2019 and beyond", concluded Mr. Wen.
Financial Results for Fourth Quarter of Fiscal Year
2019
Revenues
For the quarter ended March 31,
2019, total revenues increased by $2,355,273, or 1,477.6%, to $2,514,672 from $159,399 for the same period of fiscal year
2018. The increase in total revenues was attributable to the growth
of our automobile transaction following the Hunan Ruixi acquisition
in November 2018.
Revenues from automobile transaction and related services were
$2,432,371 for the quarter ended
March 31, 2019, compared to
$0 for the same period of fiscal year
2018. Revenues were derived primarily from sales of an aggregate of
212 automobiles, through facilitating and servicing 259 new
automobile purchases, providing management and guarantee services
for over 1,000 automobiles, as well as commissions from insurance
companies and services fees from Didi Chuxing Technology Co., Ltd.,
a major transportation network company in China that operates the largest ride-hailing
platform in China ("Didi").
Revenues from online lending services decreased by $77,098, or 48.4%, to $82,301 for the quarter ended March 31, 2019 from $159,399 for the same period of fiscal year
2018 due to the decrease in loan amount facilitated.
Cost of revenues
Cost of revenues represents the costs related to our automobile
transaction and related services business and was $1,812,187 for the quarter ended March 31, 2019, compared to $0 for the same period of fiscal year 2018 since
we only provided online lending services and did not incur cost of
revenues for the same period of fiscal year 2018.
Gross profit
Gross profit increased by $543,086, or 340.7%, to $702,485 for the quarter ended March 31, 2019 from $159,399 for the same period of fiscal year
2018. Gross profit from automobile transaction and related services
was $620,184 accounting for 88.3% of
total gross profit for the quarter ended March 31, 2019. Gross profit from online lending
services decreased by $77,098, or
48.4%, to $82,301 for the quarter
ended March 31, 2019 from
$159,399 for the same period of
fiscal year 2018.
Operating expenses
For the quarter ended March 31,
2019, selling, general and administrative expenses
("SG&A") expenses increased by $786,139, or 141.0%, to $1,343,594 from $557,455 for fiscal year 2018. The increase
in SG&A expenses was primarily due to increased salary and
employee benefits as well as rental and other marketing and
advertising related services expenses that were related to our
automobile transactions and related services business.
Amortization of intangible assets was $74,467 for the quarter ended March 31, 2019, compared to $171,348 for the same period of fiscal year 2018,
representing a decrease of 56.5%, mainly attributable to the
decrease in net book value of our online lending platform as a
result of the impairment charges of $2,000,175 for fiscal year 2018.
Impairments of intangible assets and goodwill were $1,225,073 for the quarter ended
March 31, 2019, compared to
$8,179,381 for the same period of
fiscal year 2018. Such impairments relate to our peer-to-peer
lending business.
Total operating expenses decreased by $6,265,050, or 70.3%, to $2,643,134 for the quarter ended
March 31, 2019 from $8,908,184 for the same period of fiscal
year 2018.
Net loss and loss per share
As a result of the foregoing, net loss was $2,053,864 or loss per share of $0.08, for the quarter ended March 31, 2019 as compared to net loss of
$8,747,832, or loss per share of
$0.40, for the same period of fiscal
year 2018.
Financial Results for Fiscal Year
2019
Revenues
For our fiscal year 2019 which ended March 31, 2019, total revenues increased by
$2,426,166, or 490.2%, to
$2,921,063 from $494,897 for fiscal year 2018. The increase in
total revenues was attributable to the growth of our automobile
transaction and related services following the acquisition of Hunan
Ruixi in November 2018.
Revenues from automobile transaction and related services were
$2,551,107 for fiscal year 2019,
compared to $0 for fiscal year 2018.
Our revenues are primarily from sales of an aggregate of 212
automobiles, through facilitating and servicing 311 new automobile
purchases, providing management and guarantee services for 1,060
automobiles, as well as other miscellaneous services fees including
commissions from insurance companies and services fees from
Didi.
Revenues from online lending services decreased by $124,941, or 25.2%, to $369,956 for fiscal year 2019 from $494,897 for fiscal year 2018. The decrease was
due to the decrease in loan amount facilitated and we focused on
compliance rather than launching new loan products to attract new
customers of our online lending services.
Cost of revenues
Cost of revenues represents the costs related to our automobile
transaction and related services and was $1,812,187 for fiscal year 2019, compared to
$0 for fiscal year 2018 since we only
provided online lending services and did not incur cost of revenues
during fiscal year 2018.
Gross profit
Gross profit increased by $613,979, or 124.1%, to $1,108,876 for fiscal year 2019 from $494,897 for fiscal year 2018. Gross profit from
online lending services decreased by $124,941, or 25.2%, to $369,956 for the fiscal year 2019 from
$494,897 for fiscal year 2018. Gross
profit from automobile transaction and related services was
$738,920 and accounted for 66.6% of
total gross profit for fiscal year 2019.
Operating expenses
For fiscal year 2019, SG&A expenses increased by
$2,506,868, or 165.2%, to
$4,024,672 from $1,517,804 for fiscal year 2018. The increase in
SG&A expenses was primarily due to increased salary and
employee benefits as well as professional fees associated with
being a public company since March
2018.
Amortization of intangible assets was $308,043 for fiscal year 2019, compared to
$659,558 for fiscal year 2018,
representing a decrease of 53.3%, mainly attributable to the
decrease in net book value of our online lending platform as a
result of the impairment charges of $2,000,175 for fiscal year 2018.
Impairments of intangible assets and goodwill was $1,225,073 for fiscal year 2019, compared to
$8,179,381 for fiscal year 2018. Such
impairments relate to our peer-to-peer lending business.
Total operating expenses decreased by $4,798,955, or 46.3%, to $5,557,788 for the fiscal year 2019 from
$10,356,743 for the fiscal year
2018.
Net loss and loss per share
As a result of the foregoing, net loss was $4,542,525, or loss per share of $0.18, for fiscal year 2019 as compared to net
loss of $9,858,972, or loss per share
of $0.45, for fiscal year 2018.
Further information regarding Senmiao's
results of operations, business generally and related risk factors
will be available in Senmiao's Annual Report on Form 10-K which is
being filed with the U.S. Securities and Exchange Commission, which
readers are encouraged to review.
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, 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:
Tony
Tian, CFA
Weitian Group LLC
Email: ttian@weitianco.com
Phone: +1-732-910-9692
SENMIAO TECHNOLOGY
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
As of March 31,
2019 and 2018
|
(Expressed in U.S.
dollar, except for the number of shares)
|
|
|
|
March 31,
2019
|
|
March 31,
2018
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
5,020,510
|
$
|
11,141,566
|
Accounts
receivable
|
|
326,181
|
|
-
|
Inventories
|
|
1,508,244
|
|
-
|
Finance lease
receivables, net, current portion
|
|
10,254
|
|
-
|
Prepayments,
receivables and other assets, net
|
|
3,793,468
|
|
70,421
|
Escrow receivable due
within one year
|
|
600,000
|
|
-
|
Due from related
parties
|
|
140,498
|
|
-
|
Total Current
Assets
|
|
11,399,155
|
|
11,211,987
|
|
|
|
|
|
Property and
equipment, net
|
|
125,885
|
|
8,872
|
|
|
|
|
|
Other
Assets
|
|
|
|
|
Intangible assets,
net
|
|
296,091
|
|
1,953,223
|
Prepayments for
intangible assets
|
|
470,706
|
|
-
|
Escrow
receivable
|
|
-
|
|
1,200,000
|
Finance lease
receivables, net
|
|
22,298
|
|
-
|
Total
Assets
|
$
|
12,314,135
|
$
|
14,374,082
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Borrowings from
financial institutions
|
$
|
219,157
|
$
|
-
|
Borrowings from third
parties
|
|
476,765
|
|
-
|
Advances from
customers
|
|
38,996
|
|
-
|
Income tax
payable
|
|
21,905
|
|
-
|
Accrued expenses and
other liabilities
|
|
1,500,803
|
|
404,604
|
Due to
stockholders
|
|
1,080,047
|
|
1,090,808
|
Due to related
parties and affiliates
|
|
415,931
|
|
-
|
Total Current
Liabilities
|
|
3,753,604
|
|
1,495,412
|
|
|
|
|
|
Borrowings from
financial institutions, noncurrent
|
|
177,789
|
|
-
|
Total
Liabilities
|
|
3,931,393
|
|
1,495,412
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
Common stock (par
value $0.0001 per share, 100,000,000 shares
authorized; 25,945,255 and
25,879,400 shares issued and
outstanding at March 31, 2019
and 2018, respectively)
|
|
2,595
|
|
2,588
|
Additional paid-in
capital
|
|
23,833,112
|
|
23,611,512
|
Accumulated
deficit
|
|
(15,031,538)
|
|
(10,481,669)
|
Accumulated other
comprehensive loss
|
|
(428,771)
|
|
(253,761)
|
Total
Stockholders' Equity
|
|
8,375,398
|
|
12,878,670
|
|
|
|
|
|
Noncontrolling
interests
|
|
7,344
|
|
-
|
Total
Equity
|
|
8,382,742
|
|
12,878,670
|
Total Liabilities
and Equity
|
$
|
12,314,135
|
$
|
14,374,082
|
SENMIAO TECHNOLOGY
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
|
For the Years
Ended March 31, 2019 and 2018
|
(Expressed in U.S.
dollar, except for the number of shares)
|
|
|
|
For the Years
Ended March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Revenues
|
$
|
2,921,063
|
$
|
494,897
|
Cost of
revenues
|
|
(1,812,187)
|
|
-
|
Gross
profit
|
|
1,108,876
|
|
494,897
|
Operating
expenses
|
|
|
|
|
Selling, general and
administrative expenses
|
|
(4,024,672)
|
|
(1,517,804)
|
Amortization of
intangible assets
|
|
(308,043)
|
|
(659,558)
|
Impairments of
intangible assets and goodwill
|
|
(1,225,073)
|
|
(8,179,381)
|
Total operating
expenses
|
|
(5,557,788)
|
|
(10,356,743)
|
Loss from
operations
|
|
(4,448,912)
|
|
(9,861,846)
|
Other (expenses)
income, net
|
|
(37,830)
|
|
2,874
|
Interest
expenses
|
|
(33,878)
|
|
-
|
Loss before income
taxes
|
|
(4,520,620)
|
|
(9,858,972)
|
Income tax
expenses
|
|
(21,905)
|
|
-
|
Net
loss
|
|
(4,542,525)
|
|
(9,858,972)
|
Net income
attributable to noncontrolling interests
|
|
(7,344)
|
|
-
|
Net loss
attributable to stockholders
|
$
|
(4,549,869)
|
$
|
(9,858,972)
|
Net
loss
|
$
|
(4,542,525)
|
$
|
(9,858,972)
|
Other
comprehensive (loss) income
|
|
|
|
|
Foreign currency
translation adjustment
|
|
(175,010)
|
|
854,001
|
Comprehensive
Loss
|
|
(4,717,535)
|
|
(9,004,971)
|
Less: total
comprehensive income attributable to noncontrolling
interests
|
|
(7,344)
|
|
-
|
Total
comprehensive loss attributable to stockholders
|
$
|
(4,724,879)
|
$
|
(9,004,971)
|
Weighted average
number of common stock
|
|
|
|
|
Basic and
diluted
|
|
25,882,287
|
|
21,967,776
|
Loss per
share
|
|
|
|
|
Basic and diluted loss
for the years
|
$
|
(0.18)
|
$
|
(0.45)
|
SENMIAO TECHNOLOGY
LIMITED
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
For the Years
Ended March 31, 2019 and 2018
|
(Expressed in U.S.
dollar, except for the number of shares)
|
|
|
|
For the Years
Ended March 31,
|
|
|
2019
|
|
2018
|
|
|
|
|
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net
loss
|
$
|
(4,542,525)
|
$
|
(9,858,972)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation of
property and equipment
|
|
22,851
|
|
3,580
|
Amortization of
intangible assets
|
|
308,043
|
|
659,558
|
Impairments of
intangible assets and goodwill
|
|
1,225,073
|
|
8,179,381
|
Provision of doubtful
accounts
|
|
5,077
|
|
-
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
(274,507)
|
|
(52,744)
|
Inventories
|
|
(1,491,928)
|
|
-
|
Prepayments, receivables and other assets
|
|
(1,930,415)
|
|
-
|
Advances
from customers
|
|
19,944
|
|
-
|
Income
tax payable
|
|
21,905
|
|
-
|
Accrued
expenses and other liabilities
|
|
380,256
|
|
293,892
|
Net Cash Used in
Operating Activities
|
|
(6,256,226)
|
|
(775,305)
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Purchases of property
and equipment
|
|
(28,870)
|
|
(2,990)
|
Purchases of
intangible assets
|
|
(471,555)
|
|
-
|
Addition in finance
lease receivables
|
|
(32,200)
|
|
-
|
Net Cash Used in
Investing Activities
|
|
(532,625)
|
|
(2,990)
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Net proceeds from
issuance of common stock in the IPO
|
|
-
|
|
9,641,604
|
Proceeds from
exercise of underwriter's over-allotment option
|
|
-
|
|
1,411,368
|
Proceeds borrowed
from stockholders
|
|
1,973,479
|
|
792,382
|
Repayments to
stockholders
|
|
(1,900,000)
|
|
(105,630)
|
Release of escrow
receivable
|
|
600,000
|
|
-
|
Borrowings from third
parties
|
|
471,608
|
|
-
|
Repayments of
borrowings from related parties and affiliates
|
|
(487,115)
|
|
-
|
Repayments of
noncurrent borrowings from financial institutions
|
|
(175,581)
|
|
-
|
Cash received from
acquisition
|
|
218,816
|
|
-
|
Net Cash Provided
by Financing Activities
|
|
701,207
|
|
11,739,724
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(33,412)
|
|
18,845
|
Net (decrease)
increase in cash and cash equivalents
|
|
(6,121,056)
|
|
10,980,274
|
Cash and cash
equivalents at beginning of year
|
|
11,141,566
|
|
161,292
|
Cash and cash
equivalents at end of year
|
$
|
5,020,510
|
$
|
11,141,566
|
Supplemental Cash
Flow Information
|
|
|
|
|
Cash paid for
interest expense
|
$
|
33,878
|
$
|
-
|
Cash paid for income
tax
|
$
|
-
|
$
|
-
|
Non-cash
Transaction in Investing and Financing Activities
|
|
|
|
|
Unpaid property and
equipment purchases
|
$
|
-
|
$
|
4,166
|
IPO issuance
costs net against additional paid-in capital
|
$
|
-
|
$
|
1,264,628
|
Escrow
receivable in connection with IPO
|
$
|
-
|
$
|
1,200,000
|
IPO expenses
paid by the Company's stockholders
|
$
|
70,687
|
$
|
67,277
|
Assume of
net liabilities of Ruixi, excluding cash and cash
equivalents
|
$
|
(149,680)
|
$
|
-
|
|
|
|
|
|
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SOURCE Senmiao Technology Limited