Senmiao Technology Ltd

Analyst Summary:

Senmiao Technology Limited (AIHS), a financing and servicing company focused on the online ride-hailing industry in China, reported its fiscal third-quarter 2023 financial results. The company achieved revenue of $1.74 million, which increased slightly from the prior year. The increase was primarily due to the $0.3 million increase in operating lease revenues from automobile rentals, but were partially offset by lower revenue contributions from online ride-hailing platform services due to the COVID-19 outbreaks in China’s key cities. Senmiao’s Chairman commented that the company is well-positioned to grow its automobile rental and online ride-hailing platform services businesses, which will be the key growth drivers for the future. Senmiao’s net loss from continuing operations for Q3 2023 was $1.0 million, compared to net income of $0.3 million in the prior-year period due to a $3.6 million gain from change in fair value of derivative liabilities related to warrants issued in Senmiao’s historical offerings recognized in the prior-year period, compared to a gain of $0.03 million during the fiscal third quarter ended December 31, 2022. The total stockholders' equity was $5.7 million as of December 31, 2022, compared to $8.1 million as of March 31, 2022.

Announcement: AIHS 8-K Special Filing

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Senmiao Technology's Growth in Auto Transactions and Ride-hailing Platform Strengthens Market Presence##
Current Analysis##: Senmiao strengthens offerings in auto transactions while adding new growth avenue via ride-hailing platform. Revenue primarily driven through Auto Operating Leasing, Auto Sales and Other Services. 
Forward-Looking Analysis##: Increasing competition in China's online ride-hailing industry but Senmiao's foothold in the market will drive continued growth. Expansion of offerings to retain market share and improve financial ratios.

Announcement: AIHS 10-Q Quarterly Report

Form 8-K - Current report - Item 4.01 Item 9.01