Senmiao Technology Reports Record Revenues Driven by Recently Acquired Automobile Transaction and Financing Services Business

CHENGDU,China,Feb. 20,2019 -- Senmiao Technology Limited ("Senmiao" ) (NASDAQ: AIHS),an operator of online lending marketplace connecting Chinese investors with individual and small-to-medium-sized enterprise borrowers and a provider of automobile transaction and financing services in China,today announced its unaudited financial results for the fiscal quarter ended December 31,2018.

For the three months ended December 31,2018,total revenues increased by 37.6% over the prior year quarter to $209,857,a record level for Senmiao,due to the contribution from Senmiao's recently acquired automobile transaction and financing services business (which takes the form of a 60% equity interest in Hunan Ruixi Financial Leasing Co.,Ltd. (Ruixi),which was acquired on November 22,2018).

Revenues from Senmiao's online lending business decreased over the prior year quarter by 40.3% to $91,121 and accounted for 43% of total revenues,highlighting continuing headwinds facing China's online peer-to-peer (P2P) lending industry amidst regulatory uncertainties.

Revenues from Ruixi-related automobile transaction and financing services were $118,736 and accounted for 57% of total revenues,marking an effective transformation of Senmiao from a single-revenue stream,P2P online lending intermediary to a diversified financial services provider offering facilitation,purchase services,management,guarantee and other automobile transaction services.

Revenues from automobile transaction related services were generated by Sichuan Jinkailong Automobile Leasing Co.,Ltd. (Jinkailong),a variable interest entity of Ruixi. Through partnerships with leading Chinese ride-hailing platform run by Didi Chuxing Technology Co.,Ltd. ("Didi") as well as multiple financial institutions,Jinkailong provides automobile transaction and financing services for automobile purchasers,such as transaction facilitation,automobile purchase services,management and guarantee services,etc. From November 22,2018 to December 31,Jinkailong facilitated 52 new automobile purchase transactions with aggregate transaction value of approximately RMB5 million (approximately $750,000).

For the quarter ended December 31,Senmiao incurred a net loss of $768,292 (or $0.03 per share) versus $301,217 (or $0.01 per share) in the prior year quarter.

For the nine months ended December 31,total revenues were $406,391,compared to $335,498 in the prior year period,and net loss was $2,488,661 (or $0.10 per share) versus $ 1,111,140 (or $0.05 per share) in the prior year period.

"While China's online P2P lending industry remains significantly challenged,which will likely continue to drag on our near-term outlook,we are very pleased with the immediate contribution of the new automobile transaction related services following the Ruixi acquisition in late November 2018. With Ruixi's valuable financial leasing license and Jinkailong's strong partnerships with Didi and multiple financial institutions,we believe we have the ability to jump start our automobile transaction and financial leasing business in 2019," commented Xi Wen,Chairman,Chief Executive Officer and President of Senmiao.

Further details regarding Senmiao's results of operations and financial condition for and as of the quarter ended December 31,2018 can be found in Senmiao's Quarterly Report on Form 10-Q,which has been filed with the U.S. Securities and Exchange Commission.

About Senmiao

Headquartered in Chengdu,Sichuan Province,Senmiao operates an online lending platform,www.ihongsen.com,that connects Chinese investors with individual and small-to-medium-sized enterprise borrowers. Senmiao also owns a majority interest in a Chinese automobile financial leasing company offering facilitation,guarantee and other automobile transaction services. For more information about the Company,please visit: http://ir.ihongsen.com/index.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Chinese online P2P industry,the development of the Company's automobile transaction and financing services,and the Chinese vehicle financial leasing market described in this press release,plans,objectives,goals,strategies,future events or performance,and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may,"will,"intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters,it is making forward-looking statements.Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including,but not limited to,the following: the risk that the anticipated growth of the Company's automobile transaction and financing services may not be realized; the Company's future business development; product and service demand and acceptance; changes in technology; economic conditions; reputation and brand; the impact of competition and pricing; the impact of government regulations; fluctuations in general economic and business conditions in China and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the Securities and Exchange Commission.For these reasons,among others,investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the U.S. Securities and Exchange Commission,which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward‐looking statements to reflect events or circumstances that arise after the date hereof.

For more information,please contact:

At the Company:

Julie Zhu

Email: julie@ihongsen.com

Phone: +86-181-9085-0098

Investor Relations:

Tony Tian,CFA

Weitian Group LLC

Email: ttian@weitianco.com

Phone: +1-732-910-9692

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Expressed in U.S. dollar,except for the number of shares)

December 31,

2018

March 31,

2018

(unaudited)

ASSETS

Current Assets

Cash and cash equivalents

$

9,291,719

$

11,141,566

Accounts receivable

88,555

-

Prepayments,receivables and other assets

2,118,542

70,421

Escrow receivable due within one year

600,000

-

Due from a related party

66,453

-

Total Current Assets

12,165,269

11,211,987

Property and equipment,net

63,930

8,872

Other Assets

Intangible assets,net

1,556,920

1,953,223

Escrow receivable

-

1,200,000

Deposits for intangible assets

416,112

-

Total Assets

$

14,202,231

$

14,374,082

LIABILITIES AND EQUITY

Current Liabilities

Borrowings from financial institutions

$

213,877

$

-

Advances from customers

44,901

-

Accrued expenses and other liabilities

1,071,516

404,604

Due to stockholders

1,054,025

1,090,808

Due to related partiesand affiliates

1,286,786

-

Total Current Liabilities

3,671,105

1,495,412

Borrowings from financial institutions,noncurrent

227,985

-

Total Liabilities

3,899,090

1,412

Commitments and Contingencies

Stockholders' Equity

Common stock (par value $0.0001 per share,100,000,000 shares authorized; 25,879,400 shares issued and outstanding at December 31,2018 and March 31,2018)

2,588

2,588

Additional Paid-in capital

23,657,407

23,611,512

Accumulated deficit

(12,973,371)

(10,481,669)

Accumulated other comprehensive loss

(386,524)

(253,761)

Total Stockholders' Equity

10,300,100

12,878,670

Noncontrolling interests

3,041

-

Total Equity

10,303,141

12,670

Total Liabilities and Equity

$

14,082

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Expressed in U.S. dollar,except for the number of shares)

For the Three Months Ended

December 31,

For the Nine Months Ended

December 31,

2018

2017

2018

2017

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Revenues

$

209,857

$

152,538

$

406,391

$

335,498

Gross revenues

209,857

152,538

406,391

335,498

Operating expenses

Selling,general and administrative expenses

(926,358)

(288,620)

(2,681,078)

(960,349)

Amortization of intangible assets

(60,488)

(165,206)

(233,576)

(488,210)

Total operating expenses

(986,846)

(453,826)

(2,914,654)

(1,448,559)

Loss from operations

(776,989)

(301,288)

(2,508,263)

(1,113,061)

Other income,net

14,936

71

25,841

1,921

Interest expense

(6,239)

-

(6,239)

-

Net Loss

(768,292)

(301,217)

(2,661)

(1,140)

Net income attributable to noncontrolling interests

(3,041)

-

(3,041)

-

Net loss attributable to stockholders

(771,333)

(301,491,702)

(1,140)

Other comprehensive (loss) income

Foreign currency translation adjustment

(26,063)

207,125

(132,763)

537,173

Comprehensive Loss

(797,396)

(94,092)

(2,624,465)

(573,967)

Less: total comprehensive income attributable to noncontrolling interests

(3,041)

-

Total comprehensive loss attributable to stockholders

$

(794,355)

$

(94,092)

$

(2,621,424)

$

(573,967)

Weighted average number of common stock

Basic and diluted

25,400

22,500,000

25,400

21,669,455

Loss per share

Basic and diluted loss for the period

$

(0.03)

$

(0.01)

$

(0.10)

$

(0.05)

SENMIAO TECHNOLOGY LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in U.S. dollar,except for the number of shares)

For the Nine Months Ended

December 31,

2018

2017

(unaudited)

(unaudited)

Cash Flows from Operating Activities:

Net loss

$

(2,661)

$

(1,140)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation of property and equipment

8,667

2,615

Amortization of intangible assets

233,576

488,210

Shares issued to three individuals for consulting services

-

99,550

Changes in operating assets and liabilities:

Accounts receivable

(65,861)

-

Prepayments,receivables and other assets

(256,244)

6,797

Due from a related party

(1,441)

107,141

Accrued expenses and other liabilities

107,872

(10,818)

Net Cash Used in Operating Activities

(2,462,092)

(417,645)

Cash Flows from Investing Activities:

Purchases of property and equipment

(28,241)

(412)

Purchases of intangible assets

(421,022)

-

Net Cash Used in Investing Activities

(449,263)

(412)

Cash Flows From Financing Activities:

Proceeds borrowed from stockholders

1,974,617

335,092

Repayments to stockholders

(1,900,000)

-

Release of escrow receivable

600,000

-

Proceeds borrowed from related parties and affiliates

290,183

-

Repayments of noncurrent borrowings from financial institutions

(16,929)

-

Cash acquired from acquisition

213,644

-

Net Cash Provided by Financing Activities

1,161,515

335,092

Effect of exchange rate changes on cash and cash equivalents

(100,007)

6,875

Net decrease in cash and cash equivalents

(1,849,847)

(76,090)

Cash and cash equivalents at beginning of period

11,566

161,292

Cash and cash equivalents at end of period

$

9,719

$

85,202

Supplemental Cash Flow Information

Cash paid for interest expense

$

6,239

$

-

Cash paid for income tax

$

-

$

-

Non-cash Transaction in Investing and Financing Activities

Unpaid property and equipment purchases

$

-

$

-

IPO expenses paid by the Company's stockholders

$

70,687

$

-

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