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Senmiao Technology Ltd

AIHS
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Business Summary

Senmiao Technology Limited (AIHS) is a U.S. holding company that conducts a substantial majority of its operations through its operating entities in the People's Republic of China (PRC), focusing on automobile transaction and related services for the online ride-hailing industry. The company's core business model revolves around providing various services to online ride-hailing drivers, including automobile operating leases, service fees for New Energy Vehicles (NEVs) leasing, service fees for automobile purchases, monthly commissions from Partner Platforms, auto financing through financing leases, default revenue, and other supporting services. Senmiao disposed of its online ride-hailing platform service segment on August 20, 2024, due to fierce competition and continuous losses, shifting its focus entirely to the Automobile Transaction and Related Services segment. The company's customers are primarily online ride-hailing drivers who lease or purchase automobiles from Senmiao's Auto Business Entities, often seeking assistance with the complex licensing requirements for operating an online ride-hailing car. Senmiao acquires customers through third-party sales teams, referrals from online ride-hailing platforms, and its own marketing efforts, including online and billboard advertising, fliers, and trade shows. As of March 31, 2025, the company serviced approximately 3,000 customers for its Automobile Transaction and Related Services .

The company's primary product and service lines within its Automobile Transaction and Related Services segment include Auto Operating Leasing, which generated $2,800,992 in revenue for the year ended March 31, 2025, representing 82.6% of total revenue. This service involves leasing the company's own automobiles, or subleasing from third parties, to individuals, including new online ride-hailing drivers, for terms of no more than twelve months. For the year ended March 31, 2025, the company leased 826 automobiles with an average monthly rental income of approximately $410 per automobile.

Another significant service is "Service for NEVs Leasing," which generated $184,625 in revenue for the year ended March 31, 2025, accounting for 5.4% of total revenue. This involves charging lease service fees to NEV lessees in Chengdu and Changsha for services such as introducing the online ride-hailing industry, guiding account setup on Partner Platforms, and providing consultation on business skills, violation handling, insurance claims, and traffic accidents. "Monthly services commissions" contributed $145,227 in revenue, or 4.3% of total revenue, from providing management and related services to Partner Platforms and other companies. "Default revenue" amounted to $105,025 , or 3.1% of total revenue, charged to lessees for early contract termination or other violations. "Auto Financing" generated $93,473 in interest income, representing 2.8% of total revenue, from financing leases offered to online ride-hailing drivers. "Service fees from automobile purchase services" brought in $38,696 , or 1.1% of total revenue, for services provided throughout the automobile purchase process. Lastly, "Other Services" generated $21,034 , or 0.7% of total revenue, from miscellaneous supporting services.

For the fiscal year ended March 31, 2025, Senmiao Technology Limited reported total revenues of $3,389,072 , a decrease of approximately 21.5% from $4,320,031 in the prior year. Cost of revenues was $2,539,269 , leading to a gross profit of $849,803 . The gross margin for the year ended March 31, 2025, slightly increased to approximately 25.1% from approximately 21.4% in the prior year, primarily due to an increase in revenues from other services with higher gross margins. Operating expenses totaled $4,717,319 , resulting in a loss from operations of $3,867,516 . Net loss from continuing operations was $3,467,165 , an improvement from a net loss of $3,854,206 in the previous year. The company reported a net loss attributable to the Company's stockholders of $3,725,305 , or a basic and diluted EPS of $(0.35) . As of March 31, 2025, cash and cash equivalents stood at $833,577 . The company had an accumulated deficit of approximately $45.1 million and a working capital deficit of approximately $3.0 million . Total liabilities were $5,218,172 .

Comparing year-over-year, total revenue decreased by $930,959 , or approximately 21.5% . Operating lease revenues from automobile rentals decreased by $1,030,045 , or approximately 26.9% , mainly due to a decrease in the number of automobiles leased for operating lease from over 1,400 in the prior year to 826 in the current year, and a decrease in average monthly rental income from approximately $485 to $410 per automobile. Conversely, service fees from NEVs leasing increased from $45,231 to $184,625 . Monthly services commissions decreased by $50,872 , or approximately 25.9% . Financing revenues increased from $57,677 to $93,473 . Cost of revenues decreased by $856,031 , or approximately 25.2% , primarily due to a decrease in the monthly average number of automobiles leased from third parties for operating lease from 470 to 293 . Selling, general and administrative expenses decreased by $506,093 , or approximately 16.2% , mainly due to a decrease of $337,946 in salary and employee benefits and $158,958 in office rental and charges. Provision for credit losses increased from $1,725,746 to $2,093,199 . The company also recorded a gain of approximately $397,000 from the deconsolidation of XXTX.

During the reported period, Senmiao completed the disposition of its 100% equity interest in XXTX and its subsidiaries on August 20, 2024, effectively discontinuing its online ride-hailing platform service segment. This segment had operated from October 2020 to August 2024. The acquisition by Jiangsu Yuelaiyuexing Technology Co., Ltd. was for a total purchase price of zero , with the purchaser taking over certain liabilities of XXTX. Additionally, on April 16, 2025, Senmiao Consulting transferred its 100% equity in Corenel to Jinkailong at a price of RMB zero , with the transaction completed on April 17, 2025.

Business Outlook

Management explicitly states that it does not believe the proceeds from future public offerings and anticipated cash flows will be sufficient to meet anticipated working capital requirements and capital expenditures in the ordinary course of business for the next 12 months from the date of this Report . The company has determined there is substantial doubt about its ability to continue as a going concern .

Regarding growth areas, Senmiao plans to maintain and further increase its automobile lessee base by marketing to existing and prospective online ride-hailing drivers in its current operating cities of Chengdu and Changsha . The company expects to promote the growth of its automobile rental business through automobile rental solutions and incentives specifically targeted at drivers using its Partner Platforms . An effective cross-selling strategy between the automobile leasing business and Partner Platforms is considered important for expansion and revenue growth . Senmiao also intends to strengthen marketing efforts through collaboration with automobile dealers and its own team by employing more experienced staff, sharing market resources with its equity investee company, and improving service quality and variety . The company aims to provide a series of product solutions to sustain and further increase the number of automobiles for operating leases .

Operationally, the company's revenue growth depends on its ability to improve existing solutions and services, identify evolving business needs, refine collaborations with business partners, and provide value-added services to customers . Attracting new automobile leases relies on attractive rental prices and flexible leasing terms . Senmiao has adopted a series of pricing formulas that consider historical and future expenditures, remaining available leasing months, and market price to determine rental prices for various solutions . The attraction of new customers is also linked to the comprehensive income they can earn from Senmiao's own or Partner Platforms, which is mainly affected by the number of orders distributed and incentives paid by platforms . The company emphasizes the importance of effective management, including maintaining a high turnover rate of its automobiles through its proprietary system and experienced auto-management team, to provide in-time delivery and qualified automobiles to potential lessees . As of March 31, 2025, the average utilization of automobiles for operating lease was approximately 89.0% , an increase from 79.7% in the prior year.

For planned capital allocation, the company has financed its operations primarily through equity offerings, stockholder loans, commercial debt, borrowings from financial institutions, and cash flow from operations . Senmiao may require additional capital to pursue business objectives, develop new solutions, enhance risk management, increase sales and marketing, improve operating infrastructure, and acquire complementary businesses and technologies . This may necessitate equity or debt financings . As of March 31, 2025, the company has made accumulated capital contributions of $21.1 million directly to its subsidiaries and loaned approximately $2.0 million to its equity investee company, Jinkailong, in prior years.

Management has identified several structural headwinds and execution risks. The online ride-hailing industry in China is intensely competitive, with approximately 300 automobile financing and leasing companies in Chengdu and Changsha as of June 2025 . Competitors, including large platforms like Didi Chuxing Technology Co., Ltd. (which holds over 80% market share of online ride-hailing platforms in China ), may have significantly more resources and offer discounted services or incentives . Municipal transportation bureaus in various Chinese cities have issued risk warnings, stating that the online ride-hailing market has become saturated, and some, like Changsha, have suspended applications for new online car transportation licenses . The company's reliance on relationships with Partner Platforms like Gaode Maps is crucial, and termination of these collaborations could adversely affect customer acquisition and retention . Furthermore, approximately 43% of Senmiao's online ride-hailing drivers had not obtained the required driver's license as of March 31, 2025, which could expose the company to potential penalties and operational disruptions if drivers are suspended or fined . The company is also exposed to credit risk from customer defaults on lease/purchase payments, exacerbated by China's early-stage credit infrastructure .

Risk Factors

Senmiao Technology Limited faces several material risks. Operationally, the company is exposed to intense competition in the online ride-hailing and automobile leasing industries in China, with approximately 300 automobile financing and leasing companies in Chengdu and Changsha as of June 2025 , and major platforms like Didi holding over 80% market share . This competition could lead to an inability to secure or a loss of market share, reduced service fees, increased operating expenses, and departures of qualified employees. A significant risk stems from the non-compliance of its customers with PRC online ride-hailing regulations, as approximately 43% of its served online ride-hailing drivers had not obtained the required driver's license as of March 31, 2025, potentially leading to fines of up to 10 times their illegal income or suspension of services. The company also faces credit risk in its Auto Businesses, with potential widespread defaults by automobile lessees/purchasers, which could materially and adversely affect cash flow and results of operations. As of March 31, 2025, Hunan Ruixi has not paid its subscribed capital of RMB3.5 million (approximately $482,000) for its 35% equity interest in Jinkailong, which must be paid before June 30, 2032 . Furthermore, the company has identified material weaknesses in its internal control over financial reporting, including insufficient personnel with U.S. GAAP knowledge, inadequate internal audit policies, and deficiencies in IT general control . Geopolitical and regulatory risks are significant, given that the company conducts substantially all operations in China, where the government exerts substantial influence and control over business activities. Changes in PRC laws and regulations, particularly those related to cybersecurity, data security, and foreign investment, could require material changes to operations, limit service offerings, or even cause suspension or termination of business. For instance, the Personal Information Protection Law could impose significant fines of up to RMB50 million or 5% of annual revenues from the prior year for serious violations . The company is also subject to the Holding Foreign Companies Accountable Act (HFCAA), which could lead to delisting from Nasdaq if its auditors are not subject to PCAOB inspection for two consecutive years .

Management Priorities

Management's message to shareholders conveys a tone of strategic adaptation and cost control in a challenging market. They emphasize the company's shift in focus to its Automobile Transaction and Related Services segment following the disposition of the online ride-hailing platform due to fierce competition and past losses. Management is actively working to alleviate going concern risks, acknowledging the net loss of approximately $3.7 million for the year ended March 31, 2025, an accumulated deficit of approximately $45.1 million , and a working capital deficit of approximately $3.0 million . Their strategic priorities for the period ahead include: (1) attracting and retaining customers for the automobile rental business by promoting rental solutions and incentives, particularly for drivers using Partner Platforms, and strengthening marketing efforts through collaborations and internal team expansion ; (2) enhancing operational efficiency and service quality through continuous optimization of their business system and effective management of automobile rentals, aiming to maintain a high utilization rate ; and (3) seeking additional financing through equity and/or debt from PRC banks and other financial institutions, as well as leveraging financial support and credit guarantee commitments from related parties, to meet working capital requirements and debt obligations . Management explicitly states that they do not believe anticipated cash flows and future public offering proceeds will be sufficient to meet working capital and capital expenditure needs for the next 12 months , indicating a clear need for external financing.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Customers
  2. [2] Item 7, MD&A — Revenues
  3. [3] Item 7, MD&A — Our Automobile Transactions and Related Services
  4. [4] Item 1, Business — Auto Operating Leasing
  5. [5] Item 1, Business — Auto Operating Leasing
  6. [6] Item 7, MD&A — Revenues
  7. [7] Item 7, MD&A — Revenues
  8. [8] Item 7, MD&A — Revenues
  9. [9] Item 7, MD&A — Revenues
  10. [10] Item 7, MD&A — Revenues
  11. [11] Item 7, MD&A — Revenues
  12. [12] Item 7, MD&A — Revenues
  13. [13] Item 7, MD&A — Revenues
  14. [14] Item 7, MD&A — Revenues
  15. [15] Item 7, MD&A — Revenues
  16. [16] Item 7, MD&A — Revenues
  17. [17] Item 7, MD&A — Revenues
  18. [18] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  19. [19] Item 7, MD&A — Revenues
  20. [20] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  21. [21] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  22. [22] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  23. [23] Item 7, MD&A — Gross Profit
  24. [24] Item 7, MD&A — Gross Profit
  25. [25] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  26. [26] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  27. [27] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  28. [28] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  29. [29] Item 8, Consolidated Statements of Operations and Comprehensive Loss
  30. [30] Item 8, Consolidated Statements of Operations and Comprehensive Loss
  31. [31] Item 8, Consolidated Balance Sheets
  32. [32] Item 7, MD&A — Liquidity and Going Concern
  33. [33] Item 7, MD&A — Liquidity and Going Concern
  34. [34] Item 8, Consolidated Balance Sheets
  35. [35] Item 7, MD&A — Operating lease revenues from automobile rentals
  36. [36] Item 7, MD&A — Operating lease revenues from automobile rentals
  37. [37] Item 7, MD&A — Operating lease revenues from automobile rentals
  38. [38] Item 7, MD&A — Service fees from NEVs leasing
  39. [39] Item 7, MD&A — Monthly services commissions
  40. [40] Item 7, MD&A — Financing revenues
  41. [41] Item 7, MD&A — Cost of Revenues
  42. [42] Item 7, MD&A — Cost of Revenues
  43. [43] Item 7, MD&A — Cost of Revenues
  44. [44] Item 7, MD&A — Selling, General and Administrative Expenses
  45. [45] Item 7, MD&A — Selling, General and Administrative Expenses
  46. [46] Item 7, MD&A — Selling, General and Administrative Expenses
  47. [47] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  48. [48] Item 7, MD&A — Results of Continuing Operations for the year ended March 31, 2025 Compared to the year ended March 31, 2024
  49. [49] Item 7, MD&A — Other income, net
  50. [50] Item 1, Business — Discontinued Ride-Hailing Platform Services
  51. [51] Item 1, Business — Our Corporate History
  52. [52] Item 7, MD&A — Liquidity and Going Concern
  53. [53] Item 7, MD&A — Liquidity and Going Concern
  54. [54] Item 7, MD&A — Ability to Increase Our Automobile Lessee
  55. [55] Item 7, MD&A — Ability to Increase Our Automobile Lessee
  56. [56] Item 7, MD&A — Ability to Increase Our Automobile Lessee
  57. [57] Item 7, MD&A — Ability to Increase Our Automobile Lessee
  58. [58] Item 7, MD&A — Revenues
  59. [59] Item 7, MD&A — Our Service Offerings and Pricing
  60. [60] Item 7, MD&A — Our Service Offerings and Pricing
  61. [61] Item 7, MD&A — Our Service Offerings and Pricing
  62. [62] Item 7, MD&A — Our Service Offerings and Pricing
  63. [63] Item 7, MD&A — Management of Automobile Rentals
  64. [64] Item 7, MD&A — Management of Automobile Rentals
  65. [65] Item 7, MD&A — Management of Automobile Rentals
  66. [66] Item 7, MD&A — Liquidity and Going Concern
  67. [67] Item 1A, Risk Factors — Other General Risk Factors
  68. [68] Item 1A, Risk Factors — Other General Risk Factors
  69. [69] Item 1A, Risk Factors — PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from using the proceeds of from our public offerings to make loans to or make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.
  70. [70] Item 1A, Risk Factors — PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of currency conversion may delay or prevent us from using the proceeds of from our public offerings to make loans to or make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.
  71. [71] Item 1, Business — Competition
  72. [72] Item 1, Business — Competition
  73. [73] Item 1, Business — Competition
  74. [74] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  75. [75] Item 1A, Risk Factors — Risks Related to Our Business and Industry
  76. [76] Item 1, Business — Regulations Related to Online Ride-Hailing Industry
  77. [77] Item 1A, Risk Factors — Our customers’ failure to fully comply with PRC online ride-hailing-related laws may expose us to potential penalties and negatively affect our operations.
  78. [78] Item 1A, Risk Factors — We are exposed to credit risk in our Auto Businesses. Our current risk management system may not be able to accurately assess and mitigate all risks to which we are exposed, including credit risk.
  79. [79] Item 1, Business — Regulations Related to Online Ride-Hailing Industry
  80. [80] Item 7, MD&A — Off-Balance Sheet Arrangements
  81. [81] Item 7, MD&A — Off-Balance Sheet Arrangements
  82. [82] Item 1A, Risk Factors — We have identified material weaknesses in our internal control over financial reporting. If we fail to develop and maintain an effective system of internal control over financial reporting, we may be unable to accurately report our financial results or prevent fraud.
  83. [83] Item 1A, Risk Factors — Compliance with China’s new Data Security Law, Measures on Cybersecurity Review, Personal Information Protection Law, regulations and guidelines relating to the multi-level protection scheme and any other future laws and regulations may entail significant expenses and could materially affect our business.
  84. [84] Item 1A, Risk Factors — Our common stock will be prohibited from trading in the United States under the Holding Foreign Companies Accountable Act, or the HFCA Act, in the future if the PCAOB is unable to inspect or investigate completely our auditors. The delisting of our common stock, or the threat of their being delisted, may materially and adversely affect the value of your investment. Additionally, the inability of the PCAOB to conduct inspections of our auditors would deprive our investors of the benefits of such inspections.
  85. [85] Item 7, MD&A — Liquidity and Going Concern
  86. [86] Item 7, MD&A — Ability to Increase Our Automobile Lessee
  87. [87] Item 7, MD&A — Management of Automobile Rentals
  88. [88] Item 7, MD&A — Liquidity and Going Concern

Analysis on 5/19/2026