Senmiao Technology Limited reported significant financial changes in its unaudited condensed consolidated financial statements for the three and six months ended September 30, 2024. The company, which focuses on automobile transaction and related services in the online ride-hailing industry in China, experienced a notable decline in revenue. For the three months ended September 30, 2024, revenues totaled $745,880, a decrease of approximately 37% from $1,183,138 in the same period of 2023. For the six months, revenues were $1,624,889, down 31.5% from $2,372,246 year-over-year. This decline was primarily attributed to a reduction in the number of automobiles available for operating lease and a decrease in average monthly rental income per vehicle.
Despite the revenue drop, the company reported a reduced loss from operations. The loss for the three months ended September 30, 2024, was $(615,747), an improvement from $(1,172,255) in the prior year. For the six months, the loss narrowed to $(1,389,716) from $(1,914,715) in 2023. The gross profit for the three months was $96,899, down from $180,256, while for the six months, it was $349,869 compared to $453,313 in the previous year.
Senmiao's total current assets decreased to $2,022,857 as of September 30, 2024, from $2,651,160 as of March 31, 2024. Total assets also fell to $8,596,506 from $9,861,484 during the same period. The company reported an accumulated deficit of $(42,769,137) as of September 30, 2024, compared to $(41,384,268) at the end of the previous fiscal period.
Strategically, Senmiao completed the acquisition of 100% equity interest in its online ride-hailing platform, Xixingtianxia, on August 20, 2024, which was previously operational until that date. This acquisition is part of a broader strategy to streamline operations following the discontinuation of its ride-hailing services. The company has also faced challenges, including a working capital deficit of approximately $3.4 million and substantial doubt regarding its ability to continue as a going concern due to insufficient revenue generation.
In terms of operational metrics, the average monthly rental income per automobile decreased to approximately $405 in Q3 2024 from $491 in Q3 2023. The company has also reported a provision for credit losses of $181,995 for the three months ended September 30, 2024, down from $553,323 in the same period of 2023.
Overall, while Senmiao Technology Limited has made strides in reducing operational losses, it continues to face significant revenue challenges and strategic shifts in its business model.
About Senmiao Technology Ltd
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