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.
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:
Tony Tian, CFA
Weitian Group LLC