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Senmiao Technology Reports Record Revenues Driven by Recently Acquired Automobile Transaction and Financing Services Business

postdate: 2019-06-17

CHENGDU,  China, Feb. 19, 2019 /PRNewswire/ -- Senmiao Technology Limited  ("Senmiao" ) (NASDAQ: AIHS), an operator of online lending marketplace  connecting Chinese investors with individual and small-to-medium-sized  enterprise borrowers and a provider of automobile transaction and  financing services in China, today announced its unaudited financial  results for the fiscal quarter ended December 31, 2018.

 

For  the three months ended December 31, 2018, total revenues increased by  37.6% over the prior year quarter to $209,857, a record level for  Senmiao, due to the contribution from Senmiao's recently acquired  automobile transaction and financing services business (which takes the  form of a 60% equity interest in Hunan Ruixi Financial Leasing Co., Ltd.  (Ruixi), which was acquired on November 22, 2018).

 

Revenues  from Senmiao's online lending business decreased over the prior year  quarter by 40.3% to $91,121 and accounted for 43% of total revenues,  highlighting continuing headwinds facing China's online peer-to-peer  (P2P) lending industry amidst regulatory uncertainties.

 

Revenues  from Ruixi-related automobile transaction and financing services were  $118,736 and accounted for 57% of total revenues, marking an effective  transformation of Senmiao from a single-revenue stream, P2P online  lending intermediary to a diversified financial services provider  offering facilitation, purchase services, management, guarantee and  other automobile transaction services.

 

Revenues  from automobile transaction related services were generated by Sichuan  Jinkailong Automobile Leasing Co., Ltd. (Jinkailong), a variable  interest entity of Ruixi. Through partnerships with leading Chinese  ride-hailing platform run by Didi Chuxing Technology Co., Ltd. ("Didi")  as well as multiple financial institutions, Jinkailong provides  automobile transaction and financing services for automobile purchasers,  such as transaction facilitation, automobile purchase services,  management and guarantee services, etc. From November 22, 2018 to  December 31, 2018, Jinkailong facilitated 52 new automobile purchase  transactions with aggregate transaction value of approximately RMB5  million (approximately $750,000).

 

For  the quarter ended December 31, 2018, Senmiao incurred a net loss of  $768,292 (or $0.03 per share) versus $301,217 (or $0.01 per share) in  the prior year quarter.

 

For  the nine months ended December 31, 2018, total revenues were $406,391,  compared to $335,498 in the prior year period, and net loss was  $2,488,661 (or $0.10 per share) versus $ 1,111,140 (or $0.05 per share)  in the prior year period.

 

"While  China's online P2P lending industry remains significantly challenged,  which will likely continue to drag on our near-term outlook, we are very  pleased with the immediate contribution of the new automobile  transaction related services following the Ruixi acquisition in late  November 2018. With Ruixi's valuable financial leasing license and  Jinkailong's strong partnerships with Didi and multiple financial  institutions, we believe we have the ability to jump start our  automobile transaction and financial leasing business in 2019,"  commented Xi Wen, Chairman, Chief Executive Officer and President of  Senmiao.

 

Further  details regarding Senmiao's results of operations and financial  condition for and as of the quarter ended December 31, 2018 can be found  in Senmiao's Quarterly Report on Form 10-Q, which has been filed with  the U.S. Securities and Exchange Commission.

 

About Senmiao

 

Headquartered  in Chengdu, Sichuan Province, Senmiao operates an online lending  platform, www.ihongsen.com, that connects Chinese investors with  individual and small-to-medium-sized enterprise borrowers. Senmiao also  owns a majority interest in a Chinese automobile financial leasing  company offering facilitation, purchase services, management, guarantee  and other automobile transaction services.  For more information about  the Company, please visit: http://ir.ihongsen.com/index.

 

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 Chinese online P2P  industry, the development of the Company's automobile transaction and  financing services, and the Chinese vehicle financial leasing market  described in this press release, plans, objectives, goals, strategies,  future events or performance, and underlying assumptions and other  statements that are other than statements of historical facts. When the  Company 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 the actual results to differ materially from the  Company's expectations discussed in the forward-looking statements.  These statements are subject to uncertainties and risks including, but  not limited to, the following:  the risk that the anticipated growth of  the Company's automobile transaction and financing services may not be  realized; the Company'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 assumptions underlying or related to any of the  foregoing and other risks contained in reports filed by the Company  with the Securities and Exchange Commission. For these reasons, among  others, investors are cautioned not to place undue reliance upon any  forward-looking statements in this press release. Additional factors are  discussed in the Company's filings with the U.S. Securities and  Exchange Commission, which are available for review at www.sec.gov. The  Company undertakes no obligation to publicly revise these  forward‐looking statements to reflect events or circumstances that arise  after the date hereof.

 

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