Senmiao Technology Reports Fiscal 2024 Third Quarter Financial Results

Core Insights - Senmiao Technology Limited reported total revenues of $1.6 million for the fiscal 2024 third quarter, a decrease from $1.7 million in the prior-year period, primarily due to reduced revenues from online ride-hailing services, partially offset by growth in the automobile rental business [1][3] - The company narrowed its loss from operations to $1.1 million from $1.3 million year-over-year, and net loss decreased to $0.9 million from $1.0 million [1][5] - The automobile rental business saw a 27.0% increase in operating lease revenues, reaching $1.0 million, attributed to improved utilization rates [3][5] Financial Performance - Total revenues for the third quarter were $1.6 million, with the automobile rental business contributing $1.0 million and the online ride-hailing platform generating $0.5 million [1][3] - Gross profit increased by 128.5% to $0.4 million, driven by higher contributions from the automobile rental segment [5] - Selling, general and administrative expenses decreased by 24.0% to $1.1 million, reflecting ongoing cost control measures [5] Operational Highlights - Since the launch of its online ride-hailing platform on October 23, 2020, Senmiao has completed over 35.4 million rides, generating total fares of $114.0 million [1] - The company operates in 26 cities across China, including major markets like Chengdu, Changsha, and Guangzhou [1] - A partnership with Anhui Lianma Technology Co., Ltd. is expected to enhance order completion rates and operational efficiency [2] Cost Management - Cost of revenues decreased by 22.9% to $1.2 million, mainly due to reduced maintenance and insurance expenses related to the automobile rental business [4][5] - The company has implemented cost-cutting initiatives that have successfully reduced SG&A expenses [2][5] Financial Position - As of December 31, 2023, cash and cash equivalents stood at $1.1 million, down from $1.6 million as of March 31, 2023 [5][8] - Total stockholders' equity decreased to $2.2 million from $4.4 million during the same period [5][11]