Senmiao Technology Ltd Stock Price, News & Analysis

Senmiao Technology Limited (NASDAQ: AIHS) has signed a framework agreement with Chengdu Luxingtong Information Technology Co., Ltd. to enhance its ride-hailing services in Chengdu and Changsha. This partnership aims to integrate intelligent vehicle networking services, including telematics and safety systems, enhancing the operational efficiency for ride-sharing drivers. The collaboration builds on a prior agreement with BYD Auto Sales for electric vehicle sales targeting the ride-hailing market. This initiative positions Senmiao for growth in core markets and potential strategic expansion.

Senmiao Technology Limited (NASDAQ: AIHS) has signed a Framework Agreement with BYD Auto Sales Co., Ltd. for purchasing electric vehicles (EVs) aimed at the Chinese ride-hailing market. The agreement includes promoting BYD's EVs to leasing customers and outlines favorable pricing, financial support, and marketing services from BYD. Senmiao plans to acquire at least 5,000 vehicles from 2020 to 2021, bolstering its position in major cities like Chengdu and Changsha. The collaboration aligns with China's initiative to advance EV adoption following the COVID-19 pandemic.

Senmiao Technology Limited (NASDAQ: AIHS) reported a 77% year-over-year decline in revenue for the quarter ended June 30, 2020, totaling $1,146,916, primarily due to COVID-19's impact on the ride-hailing sector. The company experienced a net loss of $2,370,184, compared to a loss of $505,432 in the previous year, with increased SG&A expenses of $2,139,440, marking a 144% rise. However, it secured a strategic cooperation agreement with a major auto dealer and raised $6 million through offerings, aiming to improve operations and adapt its business model.

Senmiao Technology Limited (NASDAQ: AIHS) has closed a public offering of 12 million shares at $0.50 per share, raising $6 million before expenses. The offering is set to strengthen the company’s balance sheet and aid in regaining compliance with Nasdaq's equity requirements. The company has also granted underwriters a 45-day over-allotment option for an additional 1.8 million shares. The offering was conducted under an effective shelf registration statement.

Senmiao Technology Limited (NASDAQ: AIHS) announced the pricing of an underwritten public offering of 12 million shares at $0.50 per share, expected to generate gross proceeds of approximately $6 million. The offering includes a 45-day option for underwriters to purchase an additional 1.8 million shares. The offering is set to close around August 6, 2020, pending customary conditions. The Benchmark Company and Axiom Capital Management are the joint book-running managers. The registration statement has been filed with the SEC to facilitate the offering.

Senmiao Technology Limited (NASDAQ: AIHS) has initiated an underwritten public offering of its common stock, pending market conditions. The offering follows an effective shelf registration statement filed with the SEC. The Benchmark Company LLC and Axiom Capital Management are the joint book-running managers for this offering. Details regarding the size and terms will be outlined in a preliminary prospectus supplement to be submitted to the SEC.

This announcement does not constitute an offer or solicitation to sell securities in jurisdictions where such actions would be deemed unlawful.

Senmiao Technology Limited (NASDAQ: AIHS), based in Chengdu, China, announced a three-year strategic cooperation with Sichuan Hongyu Enterprise Management Co., Ltd. to expand its automobile transaction services targeting the online ride-hailing market. The agreement aims to facilitate the purchase of over 2,000 electric vehicles (EVs) for ride-hailing drivers. Hongyu Auto will promote Senmiao's services to EV manufacturers, supported by a capital contribution of RMB50 million (approx. US$7.0 million) from Hongyi Industrial Group. This partnership is expected to reduce costs and improve services for ride-hailing drivers.

Senmiao Technology Limited (NASDAQ: AIHS) reported its financial results for the fiscal year ending March 31, 2020. Revenue surged by 514% to $15,655,575, driven primarily by a 535% increase in automobile sales, totaling $11,536,691. Gross profit reached $3,375,337, reflecting a 357% year-over-year growth. Despite this growth, the company faced a net loss of $9,935,803, worsening from the prior year's $4,542,525 loss, largely due to impacts from COVID-19. The company aims to shift focus towards automobile rentals while exploring new capital opportunities.

Senmiao Technology Limited (NASDAQ: AIHS) has secured a RMB50 million (approximately US$7 million) investment from Hongyi Industrial Group for its Auto Business via its controlled entity, Jinkailong. The capital will be used to expand Jinkailong's operations in Chengdu, specifically for purchasing vehicles and opening retail stores. Hongyi will hold a 27.03% equity interest in Jinkailong, leading to potential dilution of existing shareholders. The agreement includes performance targets over three years, with risks including the need for an IPO or merger.