Executive Summary

Q2 FY2023 revenue was $2.241M, down sequentially from $2.342M in Q1 FY2023, but up versus $1.114M in Q2 FY2021, driven by rental and ride-hailing services contributions .
EPS was -$0.15, below Q1 FY2023 EPS of $0.05 and down from $0.08 in Q2 FY2021; management attributed year-over-year variance to the prior-year derivative liability fair value gain .
Operating loss improved year-over-year to $(1.585)M from $(2.312)M but worsened sequentially versus Q1’s $(1.441)M, reflecting higher costs and lower ride-hailing revenues .
No formal guidance and no Wall Street consensus were available; focus remained on expanding partnerships and cities amid COVID and regulatory headwinds .

What Went Well and What Went Wrong

What Went Well

Year-over-year top-line growth from rental and platform services; gross profit turned positive versus a prior-year gross loss as platform margins improved .
SG&A decreased 16.4% YoY to $1.528M, reflecting cost-control initiatives (salary reductions, lower office and professional fees) .
Management expanded ride-hailing operations to Tianjin and Foshan, reaching 26 cities, citing synergies between rental and platform businesses: “We continued expanding our online ride-hailing business to new cities and building symbiotic partnerships…” .

What Went Wrong

EPS declined to -$0.15 vs $0.05 in Q1 FY2023 and $0.08 in Q2 FY2021; YoY comparison was impacted by a $3.0M prior-year derivative liability fair value gain that did not repeat .
Cost of revenues rose versus the prior year, driven by expansion-related lease costs and automobile costs (partially offset by lower platform fees), pressuring operating results .
No formal guidance or consensus estimates were available, limiting visibility; COVID-related lockdowns in Chengdu were cited as a headwind .

Financial Results

Metric	Q2 FY2021	Q1 FY2023	Q2 FY2023
Total Revenues ($USD)	$1,113,719	$2,341,796	$2,241,202
EPS (Basic & Diluted, $)	$0.08	$0.05	$(0.15)
Gross Profit ($USD)	$(435,138)	$459,980	$308,818
Loss from Operations ($USD)	$(2,312,032)	$(1,440,595)	$(1,585,206)
Net Income (Loss) Attributable to Stockholders ($USD)	$419,926	$332,853	$(1,083,490)

Segment revenue breakdown:

Segment Revenues ($USD)	Q2 FY2021	Q1 FY2023	Q2 FY2023
Automobile Rental (Operating Lease)	$0.4M	$0.9M	$0.9M
Online Ride-Hailing Platform Services	$0.6M	$1.2M	$1.0M

KPIs and balance sheet snapshots:

KPI / Metric	Q1 FY2023	Q2 FY2023
Cumulative Rides Completed (since Oct 23, 2020)	~23.0M as of Jun 30, 2022	~25.1M as of Sep 30, 2022
Cities of Operation	Not disclosed for Q1 in press release	26 cities (incl. Tianjin, Foshan)
Cash & Cash Equivalents (Period-End)	$1,854,338	$1,965,532
Weighted Avg. Shares (Basic & Diluted)	6,305,252	7,048,187

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2023/Q3 onward	None provided	None provided	Maintained (no formal guidance)
Margins	FY2023/Q3 onward	None provided	None provided	Maintained (no formal guidance)
OpEx	FY2023/Q3 onward	None provided	Ongoing cost-control initiatives (directional commentary only)	Not quantified
Tax Rate / OI&E / Dividends	FY2023/Q3 onward	None provided	None provided	Maintained (no formal guidance)

Earnings Call Themes & Trends

No earnings call transcript identified for Q2 FY2023; themes synthesized from press releases.

Topic	Previous Mentions (Q-2: FY2022 Year-end)	Previous Mentions (Q-1: Q1 FY2023)	Current Period (Q2 FY2023)	Trend
Platform Partnerships & Expansion	Strengthened partnerships; aim to enter new regions; 20+ cities	Partnerships with Ctrip & Fliggy; sequential recovery in orders; synergies	Launched Tianjin & Foshan; total 26 cities; symbiotic partnerships	Expanding footprint and partner base
Cost Discipline & SG&A	SG&A increased YoY in FY2022 with staff and promotion	SG&A down 27.5% YoY (lower advertising, office, salary)	SG&A down 16.4% YoY; salary down $0.2M; lower office and professional fees	Improving expense control
Macro/Regulatory Headwinds	Pandemic environment in China impacting operations	COVID lockdowns in Chengdu; resilience and recovery noted	Continued impact from lockdowns and regulatory environment; no formal guidance	Persistent but managed headwinds
Segment Mix & Margins	Focus shift to rentals and platform services	Platform margins favorable under Meituan model; >50% of total revenues	Platform revenues $1.0M; rental $0.9M; gross profit positive	Balanced mix; margin improvement vs prior year
Structural Changes	Deconsolidation of VIEs; discontinued ops classification	Clarified continuing vs discontinued ops in comps	Continuing operations basis maintained in reporting	Stable reporting framework

Management Commentary

“We were pleased to have achieved strong top line growth during the second quarter of fiscal 2023 due to increased revenue contributions from our automobile rental and online ride-hailing platform services businesses from the prior-year period. This is particularly impressive given the impact of lockdowns in Chengdu on our business as we continue to navigate the ongoing pandemic environment.”
“We continued expanding our online ride-hailing business to new cities and building symbiotic partnerships during the quarter ended September 30, 2022… increasing Senmiao’s presence to a total of 26 cities.”
“We believe these partnerships present immediate value and potential future opportunities for our drivers. We plan to continue strengthening and expanding our partnership base to enable Senmiao to grow into new regions and improve access to our services.”

Q&A Highlights

No earnings call transcript or Q&A available for Q2 FY2023 in the document set; management’s commentary above reflects prepared remarks from press releases .

Estimates Context

S&P Global consensus estimates for AIHS Q2 FY2023 were unavailable; no EPS or revenue consensus could be retrieved, so no beat/miss analysis versus estimates is provided .

Key Takeaways for Investors

Sequential softening: Revenue declined to $2.241M from $2.342M in Q1, while EPS moved from $0.05 to -$0.15; operating loss widened sequentially despite YoY improvement .
YoY margin improvement: Gross profit of $308.8K versus a prior-year gross loss reflects improved platform unit economics; SG&A fell YoY on cost controls .
Mix normalizing: Rental and platform revenues were $0.9M and $1.0M, respectively, suggesting a balanced model after prior ramp under the Meituan cooperation .
Macro/regulatory risks persist: COVID-related lockdowns and regulatory environment in China were cited as headwinds; visibility limited without formal guidance .
Expansion remains the growth lever: Entry into new cities and partnerships continues to be the core strategy to drive volume and improve utilization .
Prior-year comps distorted by non-operational gains: FY2021/2022 period benefited from derivative liability fair value gains; investors should focus on operating trend lines rather than prior-year EPS .
Near-term focus: Monitor platform order volumes and any updates on partnerships/new cities for signs of demand recovery; watch SG&A trajectory for sustained cash discipline .

Senmiao Technology Ltd (AIHS)·Q2 2023 Earnings Summary