Senmiao's Auto Business Overshadows P2P Results in 4Q
Results from the company's automobile business offset the revenue drop in the P2P lending services.
The stock of Senmiao Technology Ltd. (Nasdaq: AIHS) ended the day at $2.21 per share, up 1 cent, after posting soaring revenue and narrowed net loss for the fourth fiscal quarter.
Senmiao said in a statement Wednesday that it had $2.5 million in revenue for the fourth fiscal quarter ended Mar. 31, which was a record high for the company, compared with $159,400 in revenue a year earlier.
The Chengdu-based company reported that revenue from its peer-to-peer lending operations declined 48 percent from a year ago. The company's automobile sales and related services, on the other hand, soared and accounted for 97 percent of its revenue, Senmiao said.
The automobile unit, Hunan Ruixi Financial Leasing Co. Ltd., provides sales transactions and financing services for automobile purchasers through partnerships with the leading Chinese ride-hailing platform run by Didi Chuxing Technology Co. Ltd., as well as multiple financial institutions.
"Our financial results for the fourth quarter of the fiscal year 2019 marked the positive commencement and expansion of our new automobile transaction business and serve as a validation of our transformation from an online lending marketplace to a more diversified financial service company in China," Xi Wen, the chairman, chief executive officer, and president of Senmiao, said.
The company reported a net loss of $2.1 million compared with a loss of $8.8 million a year ago, representing a decrease of 77 percent.
Looking forward, Wen said, "We expect the automobile transaction and related services business to continue to drive significant growth in both revenues and gross profit during 2019 and beyond."