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AIHS Nasdaq· Senmiao Technology Ltd.
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AIHS Nasdaq· Senmiao Technology Ltd.
Earnings report Q4 2023

AIHS Reports Decrease in Revenue for the Latest Quarter

Segments of Revenue

AIHS reported a decrease in revenue for the latest quarter, ending December 31, 2023. The breakdown of revenue sources for the three months ended December 31, 2023, and 2022 are as follows:

  • Revenue from automobile transactions and related services: $1.11 billion in 2023, compared to $930.63 million in 2022.
  • Operating lease revenues from automobile rentals: $992.07 million in 2023, compared to $781.21 million in 2022.
  • Service fees from automobile purchase services: $19.12 million in 2023, compared to no revenue in 2022.
  • Financing revenues: $12.20 million in 2023, compared to $8.61 million in 2022.
  • Service fees from NEVs leasing: $8.41 million in 2023, compared to $49.00 million in 2022.
  • Service fees from management and guarantee services: $1.77 million in 2023, compared to $8.92 million in 2022.

Strengths

Despite the decrease in revenue, AIHS demonstrated strength in its operating lease revenues from automobile rentals, which increased from $781.21 million in 2022 to $992.07 million in 2023. This growth can be attributed to the company's expansion efforts and continuous focus on improving the efficiency of its automobile rental business. Management has emphasized their commitment to sustaining and further increasing the number of automobiles available for operating leases, which bodes well for future revenue generation.

Challenges

AIHS faced challenges in its online ride-hailing platform services, resulting in a decrease in revenues from this segment. The decline can be attributed to market competition and a decrease in orders. The company will need to address these challenges and find ways to increase demand for its ride-hailing services to reverse the revenue decline in this segment.

Noteworthy

It is noteworthy that AIHS reported revenue from service fees for automobile purchase services in 2023, which was not present in the previous year. This indicates the company's efforts to diversify its revenue streams and expand its offerings beyond traditional automobile transactions and rentals.

Summary

AIHS reported a decrease in revenue for the latest quarter, primarily driven by a decline in revenues from online ride-hailing platform services. However, the company demonstrated strength in its operating lease revenues from automobile rentals, which increased as a result of expansion efforts and efficiency improvements. AIHS plans to provide product solutions to sustain and further increase the number of automobiles available for operating leases. The company will need to address challenges in its ride-hailing segment and find ways to increase demand. The inclusion of service fees for automobile purchase services indicates AIHS's efforts to diversify its revenue sources. Overall, AIHS's financial performance in the latest quarter reflects a mixed outcome, with both strengths and challenges to address.

Source documents

Form 10-Q  filed on Feb 09, 2024
33 pages scanned

Reference data

Company financials Q4 revenue 1.6M
Analyst estimates Q4 EPS missed by NaN%
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