Sign in

You're signed outSign in or to get full access.

ST

Senmiao Technology Ltd (AIHS)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 FY2024 revenue declined 18.5% YoY to $1.83M, driven by lower online ride‑hailing platform services amid increased competition and partner compliance checks, while operating lease revenues improved; net loss was $1.21M and loss per share was $0.12 .
  • Gross profit rose 21.1% YoY to $0.37M and gross margin expanded to 20.5% (from 13.8% in Q2 FY2023) on business mix shift toward leasing and NEV cost benefits .
  • SG&A fell 27.8% YoY to $1.10M, narrowing operating loss to $1.28M from $1.59M; management emphasized ongoing cost control and streamlining initiatives .
  • QoQ, revenue fell 12.8% vs Q1 FY2024 ($2.09M) and net loss widened from $0.42M due to weaker ride volumes; leasing performance and margin mix partially offset pressure .
  • No formal guidance or call transcript was provided; estimate comparisons were unavailable (S&P Global consensus could not be retrieved). Values from S&P Global were unavailable for this period.

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin expanded to 20.5% on improved leasing economics and lower maintenance/insurance from increased NEV usage .
    • SG&A decreased 27.8% YoY, reflecting disciplined cost control and operational streamlining; operating loss narrowed YoY .
    • Management focused on shifting from automobile sales to leasing, increasing operating lease revenues (+8.9% YoY to $1.02M) and gross profit contribution .

  • What Went Wrong

    • Online ride‑hailing platform revenues fell to $0.64M (from $0.97M) due to fewer completed orders amid intensified competition and Gaode compliance checks in Guangzhou (major market) .
    • Allowance for credit losses increased (six months: $0.68M) tied to balances due from Jinkailong, reflecting counterparty credit risk and collections headwind .
    • Cash and cash equivalents declined to $1.31M and management disclosed substantial doubt about going concern without additional financing, citing working capital deficit and purchase commitments .

Financial Results

MetricQ2 FY2023 (oldest)Q1 FY2024Q2 FY2024 (newest)
Revenue ($USD)$2,241,202 $2,094,714 $1,826,951
Net Income (Loss) ($USD)$(1,179,804) $(421,347) $(1,207,452)
Diluted EPS ($USD)$(0.15) $(0.05) $(0.12)
Gross Profit ($USD)$308,818 $581,940 $374,111
Gross Margin (%)13.8% n/a20.5%
Loss from Operations ($USD)$(1,585,206) $(788,422) $(1,281,945)

Segment revenue breakdown (Q2 periods):

SegmentQ2 FY2023Q2 FY2024
Automobile Transaction & Related Services Revenue ($USD)$1,268,499 $1,183,138
Online Ride‑hailing Platform Services Revenue ($USD)$972,703 $643,813

Selected KPIs (leasing/platform efficiency):

KPIQ2 FY2023Q1 FY2024Q2 FY2024
Average monthly rental income per auto (operating lease)~$380 —~$491
Average utilization (operating lease, quarter)76.8% —72.6%
Cities of operation (as of PR date)—26 27
Cumulative rides completed since launch—~31.9M ~33.8M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY2024/Q3 onwardNot provided Not provided Maintained (no guidance)
MarginsFY2024Not provided Not provided Maintained (no guidance)
OpExFY2024Not provided Not provided Maintained (no guidance)
Tax/OtherFY2024Not provided Not provided Maintained (no guidance)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q2 FY2024)Trend
Competition & order flowCompetition pressured online ride‑hailing revenues QoQ in Q1 FY2024 Lower platform revenue due to increased competition and Gaode compliance checks in Guangzhou Negative (order pressure)
NEV utilization/costs“Utilize more NEVs… lowered cost of services” and improved gross profit in Q1 FY2024 Lower maintenance/insurance and improved leasing gross profit; margin expansion YoY Positive (cost tailwind)
Cost control (SG&A)SG&A −35.2% YoY in Q1 FY2024 SG&A −27.8% YoY in Q2 FY2024; operating loss narrowed YoY Positive (discipline sustained)
Regulatory compliance (driver licensing)Ongoing compliance needs; fines periodically noted in filings Partner compliance checks (Gaode) reduced orders; regulatory fines recurred in broader period Mixed/Negative (short‑term headwind)
Business mix shift (sales→leasing)Emphasized leasing growth in prior quarter commentary Leasing revenue rose; online platform contribution declined YoY; gross margin improved Positive for margin; mixed for revenue

Management Commentary

  • “Our fiscal 2024 second quarter results were supported by stable revenue growth from our automobile leasing business, but our top line was impacted by decreased revenue contributions from online ride-hailing platform services… we increased gross profit by 21.1% thanks to our ongoing shift in business focus from automobile sales to leasing services… we continued our cost-cutting efforts and decreased SG&A expenses by more than 27% year over year, which enabled us to narrow loss from operations.” — Xi Wen, CEO .
  • “As a result of our strategic decision to utilize more NEVs, we successfully lowered cost of services, and were able to improve gross profit by 26.5%… ongoing efforts to streamline our operations resulted in a 35.2% decrease in SG&A…” — Xi Wen, Q1 FY2024 .

Q&A Highlights

  • No earnings call transcript was available for Q2 FY2024; no formal Q&A disclosed in filings .

Estimates Context

  • Wall Street consensus EPS and revenue estimates (S&P Global) were unavailable for Q2 FY2024 at time of analysis; comparison to consensus could not be performed. Values retrieved from S&P Global were unavailable for this period.

Key Takeaways for Investors

  • Leasing-led mix and NEV adoption are improving unit economics and margins; sustained SG&A discipline is narrowing operating losses despite platform revenue headwinds .
  • Online ride‑hailing platform revenue is sensitive to competitive intensity and partner compliance actions; monitoring order recovery and platform incentives will be key for near‑term trajectory .
  • Credit exposure to related party Jinkailong remains a risk (allowance for credit losses), warranting continued scrutiny of collections and balance sheet quality .
  • Liquidity is tight and management disclosed going‑concern uncertainty absent additional financing; upcoming purchase commitments heighten cash planning risks .
  • Near‑term trading: margin expansion and cost control are supportive; however, lack of guidance and platform revenue pressure may cap upside until evidence of order stabilization emerges .
  • Medium‑term thesis: scaling NEV‑enabled leasing and improving driver/compliance processes with partners could restore platform volumes; balance sheet strength and financing access are gating factors .
  • Watch for operational updates on driver licensing compliance, partner platform policies (e.g., Gaode), and any capital raise/disclosure to mitigate going‑concern risk .