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Senmiao Technology Limited (AIHS-1.11%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenues to $745,880 from $1,183,138 in the same quarter the previous year. This decrease is attributed to a decline in the number of automobiles leased for operating purposes.
Cost of revenues for the quarter was $648,981, representing 87% of revenues, compared to 85% in the same quarter of the previous year. This increase in cost ratio reflects a decrease in gross profit.
The company reported a gross profit of $96,899 for the quarter, compared to $180,256 in the previous year, with the decline attributed to reduced revenues from automobile operating leases.
Selling, general, and administrative expenses decreased to $530,651 from $799,188, primarily due to cost control measures and streamlined expenses.
Net loss from continuing operations for the quarter was $238,739, down from $1,082,401 in the previous year. The decrease in net loss is attributed to a reduction in operating expenses and a gain from the deconsolidation of a subsidiary.
Cash provided by operating activities was $192,349 for the six months ended September 30, 2024, compared to $88,129 in the same period the previous year.
Senmiao had cash and cash equivalents of $792,025 as of September 30, 2024. The company acknowledges its dependence on equity financing and financial support from related parties to meet future obligations.
The filing also details the company's discontinued operations, including the cessation of its online ride-hailing platform services as of August 20, 2024.
Senmiao identified material weaknesses in its internal controls over financial reporting due to insufficient personnel with appropriate levels of accounting knowledge and experience.
The company continues to focus on its automobile transaction and related services in China, with a strategy to maintain and grow its customer base through marketing efforts and collaborations with business partners.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Senmiao Technology Limited quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.