Senmiao Technology Ltd (NASDAQ: AIHS)

Senmiao Technology Ltd is a Nevada incorporated holding company that conducts substantially all of its operations through its PRC based operating entities. It focuses on providing automobile transaction and related services to support the ride hailing industry in the People's Republic of China.

The company generates revenue primarily from automobile operating lease agreements where it rents vehicles to individual customers for terms not exceeding twelve months. It also earns service fees from new energy vehicle leasing by providing guidance and support to lessees who rent such vehicles. Revenue is derived from automobile purchase services that include credit assessment GPS installation and administrative procedures for buyers. Monthly commissions are received for management and related services provided to partner platforms and other companies. Auto financing contributes interest income from financing leases where the company retains title to the vehicle until the lessee completes payment. Default revenue comes from fees charged to lessees for early contract termination or other violations. Other supporting services provide additional miscellaneous income.

The company operates through the following segments: Automobile Transaction and Related Services.

• Automobile Transaction and Related Services encompasses automobile operating lease new energy vehicle leasing service fees automobile purchase service fees monthly service commissions auto financing interest default revenue and other supporting services.

The company operates in a highly competitive environment where numerous automobile financing and leasing firms serve ride hailing drivers in Chengdu and Changsha. Didi Chuxing Technology Co Ltd holds over eighty percent of the online ride hailing platform market share in China according to public information. Additionally there are about one hundred companies that operate their own ride hailing platforms and have relationships with Gaode in the two major cities. Senmiao Technology Ltd differentiates itself by offering a bundled suite of services that includes leasing financing purchase assistance and ongoing management for ride hailing drivers. Its risk management procedures which include credit checks GPS monitoring and regular vehicle inspections help mitigate losses and protect collateral.

The majority of the company's customers are online ride hailing drivers who lease or purchase vehicles to support their ride hailing activities. Automobile purchasers also avail themselves of purchase assistance and post transaction management services. Partner platforms and other companies receive monthly commissions for management and related services provided by the company.