Senmiao Technology(AIHS) - 2026 Q2 - Quarterly Report

Financial Performance - Total revenues for the three months ended September 30, 2025, were $936,344, an increase from $745,880 in the same period of 2024, representing a growth of approximately 25.5%[16] - Gross profit for the six months ended September 30, 2025, was $471,043, compared to $349,869 for the same period in 2024, reflecting a year-over-year increase of about 34.7%[16] - The Company reported a gross profit margin of approximately 29.3% for the three months ended September 30, 2025, compared to 13.0% for the same period in 2024[16] - The Company incurred total operating expenses of $1,032,301 for the three months ended September 30, 2025, compared to $712,646 for the same period in 2024, an increase of approximately 45%[16] - The Company recognized a net cash used in operating activities of $(392,547) for the six months ended September 30, 2025, compared to a net cash provided of $192,349 for the same period in 2024[19] - The Company reported a net loss of approximately $1.0 million for the six months ended[32] - The Company recognized a net loss of $723,730 for the three months ended September 30, 2025, compared to a net loss of $238,739 for the same period in 2024, reflecting a significant increase in losses of approximately 203.5%[176] Assets and Liabilities - Total current assets decreased to $2,109,714 as of September 30, 2025, from $2,238,762 as of March 31, 2025, a decline of about 5.8%[14] - Total liabilities as of September 30, 2025, were $4,771,498, down from $5,218,172 as of March 31, 2025, representing a decrease of approximately 8.5%[14] - The total assets decreased to $4,682,368 as of September 30, 2025, from $5,800,792 as of March 31, 2025, reflecting a decline of about 19.3%[15] - The total equity as of September 30, 2025, was $(132,073), a decline from $2,952,520 as of September 30, 2024, reflecting a significant decrease in equity[17] - The company had cash and cash equivalents of $676,980 as of September 30, 2025, down from $833,577 as of March 31, 2025, a decrease of approximately 18.8%[14] Credit Losses and Deficits - The company had a total accumulated deficit of $(45,922,713) as of September 30, 2025, compared to $(42,769,137) as of September 30, 2024, indicating an increase in the accumulated deficit of approximately 5.03%[17] - The allowance for credit losses due from Jinkailong was $5,391,992 as of September 30, 2025[30] - The allowance for credit losses remained unchanged at $17,063,000 as of September 30, 2025, compared to March 31, 2025, after a write-off of $17,210,000 during the six months ended September 30, 2025[105] Revenue Streams - Operating lease revenues from automobile rentals for the six months ended September 30, 2025, were $1,442,918, up 7.6% from $1,340,733 in 2024[75] - Service fees from NEVs leasing increased significantly to $194,559 for the six months ended September 30, 2025, compared to $73,788 in 2024, representing a growth of 163.5%[75] - The company reported revenues of $936,344 from automobile transaction and related services for the three months ended September 30, 2025, compared to $745,880 for the same period in 2024, marking an increase of approximately 25.5%[176] Market and Operational Insights - The online ride-hailing industry in China is projected to grow from RMB354.7 billion in 2024 to RMB751.3 billion by 2028, driven by rising consumer demand for economical mobility options[199] - The total volume of online ride-hailing orders in China decreased by approximately 26% to 758 million in September 2025 compared to the same month in 2024, indicating increased competition and market saturation[200] - Approximately 40% of ride-hailing drivers using the company's services had not obtained the required driver's license as of September 30, 2025, which may impact operations[204] - The company plans to enhance its marketing efforts and strengthen collaborations with automobile dealers to maintain and grow its customer base[189] Future Outlook and Concerns - The company has substantial doubt about its ability to continue as a going concern due to insufficient funds to meet working capital requirements[34] - The company is currently evaluating the impact of new accounting standards effective after December 15, 2026, which may affect its financial statements and disclosures[99] - The company plans to continue focusing on its automobile rental business, expecting it to account for a majority of revenues moving forward[208]