CHENGDU, China, Aug. 3, 2020 /PRNewswire/ -- Senmiao Technology
Limited ("Senmiao") (NASDAQ: AIHS), a provider of automobile
transaction and related services targeting the
online ride-hailing industry in China, today announced that it has signed a
strategic cooperation agreement with Sichuan Hongyu Enterprise
Management Co., Ltd. ("Hongyu Auto") to facilitate the purchase of
electric vehicles ("EVs") and cross-promote their brands, products
and services for a term of three years, with a goal to further
expand its automobile transaction and related services business
("Auto Business"). Based in Chengdu, Hongyu Auto is one of the largest
auto dealer groups in southwest China.
Under the cooperation agreement, Hongyu Auto will promote
Senmiao's Auto Business to EV manufacturers. Senmiao in
turn plans to utilize the auto financing affiliates of the EV
manufacturers with the goal of facilitating Senmiao's purchase of
over 2,000 EVs at favorable costs
for ride-hailing drivers and for other commercial use over a
three-year period. Senmiao's EV procurement process will also be
partially funded by the recently announced RMB50 million (approximately US$7.0 million) capital contribution from Hongyi
Industrial Group Co., Ltd. ("Hongyi") expected to be received by
Senmiao's variable interest entity engaged in its Auto
Business. While the strategic cooperation agreement does not
mandate actual automobile purchases or other financial commitments
between the parties, it solidifies an important three-year
collaboration for Senmiao and Hongyu Auto on numerous sales
channels, including automobile finance and insurance services,
automotive spare parts procurement and supply chain, automobile
after-sales maintenance and rescue services. Senmiao also intends
to open additional retail stores or maintain its brand presence at
Hongyu Auto's dealerships to provide transaction facilitation
services to ride-hailing drivers in Chengdu, while cross-promoting products,
brands and services with Hongyu Auto.
Mr. Xi Wen, Chief Executive
Officer of Senmiao, commented:
"Today's agreement solidifies an important collaboration for
Senmiao as we work towards achieving long-term sustainable growth
in our Auto Business. This cooperation is expected to reduce
Senmiao's procurement and operation costs and improve the services
we provide to short lease ride-hailing drivers. We believe this
agreement puts us in an even stronger position to manage the
adverse impact of COVID-19, as we focus on accelerating the
expansion of our Auto Business and cross-promoting our products and
services to a wider audience across southwest China. Finally, we believe that our
cooperation with Hongyu Auto will enable us to give our
ride-hailing drivers more cost-effective access to electric
vehicles which aligns with our social responsibility to lower
overall carbon footprint. We are excited about this next step
and look forward to finding more innovative ways to drive long-term
sustainable growth for our shareholders."
About Hongyu Auto
Hongyu Auto is one of the largest automobile dealership groups
in southwest China. It sells and
services 11 large and medium-sized high-end automobile dealerships,
including several electric vehicle brands focused on pure-electric
vehicles, and operates 26 automobile 4S dealerships throughout
Sichuan province.
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, operating lease, 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
strategic cooperation agreement with Hongyu Auto and its potential
benefits as described herein, 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
cooperation with Hongyu Auto may not provide the benefits that
Senmiao expects, the risk that the investment by Hongyi may not be
consummated timely or at all; the risk that Senmiao's variable
interest entity in the Auto Business may not effectively utilize
the investment proceeds from Hongyi to grow its business; 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:
Rene Vanguestaine
Christensen
Email: rvanguestaine@ChristensenIR.com
Phone: +86 178 1749 0483
Linda Bergkamp
Christensen
Email: lbergkamp@ChristensenIR.com
Phone: +1 480 614 3004
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SOURCE Senmiao Technology Limited