Senmiao Technology Ltd. (Nasdaq: AIHS) reported on Tuesday a declined revenue and widened losses for the third quarter.
The company, which facilitates auto transactions, reported $1.64 million in revenue for the three months through December – that’s compared with $2.75 million in the same period last year.
Covid-19-related woes contributed to a decline in new automobile purchases. Also, a significant number of ride-hailing drivers exited the business, hurting Senmiao's subleasing sales.
Net loss in the quarter increased to $3.67 million from a loss of $962,700 at the same time in the preceding year. Loss per share from continuing operations was 7 cents, the company said.
Previously a peer-to-peer lending platform, Senmiao transitioned to providing services in the auto industry following the acquisition of Ruixi Financial Leasing, an automobile transaction and financing business.
Now, Chengdu-based Senmiao provides services related to vehicle purchases and management, auto financing, and ride-sharing. As the ride-hailing markets in Chengdu and Changsha have recovered from the impact of the pandemic beginning in April 2020, Senmiao reported a decrease in the number of automobiles tendered to it by the ride-hailing drivers exiting the business during this quarter as compared with prior quarters.
"We are pleased to have achieved sequential top line revenue growth during our third quarter for the second straight period, evidencing growth in our ride-hailing focused businesses. With the significant changes we have made to our business model and new partnerships forged over the course of the past year, we believe we have a tremendous growth opportunity in front of us," Senmiao’s chairman, chief executive, and president, Xi Wen, said in a statement.
Earlier this month, the company expanded its partnership with an affiliate of Meituan (HKEX: 03690). Together with the giant, Senmiao is now building a platform for ride-hailing drivers in Guangzhou.
The stock in Senmiao inched up 1 cent Tuesday, trading at $1.62 per share.