Senmiao Technology Ltd
For the period ended Mar 31, 2026. Filed Jun 30, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2026 · Filed Jun 30, 2026
VAI$2.19+30.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2025-03-31; filed 2025-07-10.
0001213900-25-062758
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2026-03-31; filed 2026-06-30.
0001213900-26-073684
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 127 previous paragraphs and 154 current paragraphs.
62 unchanged; 46 reworded; 39 added; 16 removed; 3 previous and 7 current paragraphs rearranged.
Tables are not compared: 12 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (39)
Current report
During the year ended March 31, 2026, the Company began evaluating opportunities to expand its business into AI infrastructure. In furtherance of this initiative, the Company appointed David Nichols as a strategic advisor to assist the Company in advancing its strategy across AI infrastructure, digital infrastructure and new energy initiatives, with a particular focus on power infrastructure origination, capital formation and institutional partnerships.
Current report
Management is currently evaluating several potential AI data center projects and, with the assistance of its advisors, is conducting commercial, operational and strategic due diligence. The Company expects to select one of these opportunities for further development if it determines that the project is commercially viable and consistent with its long-term strategic objectives. As of the date of this Annual Report, the Company has not entered into any definitive agreement with respect to any AI data center or related infrastructure project, and there can be no assurance that any such opportunity will be consummated or successfully implemented.
Current report
Considering the fierce competition of the online ride-hailing industry and our operating losses in China, in December 2025 the Company entered into a certain Acquisition Agreement (the “Sichuan Acquisition Agreement”) with Hu Mao Sheng Tang Holdings Limited., a non-affiliated Hong Kong company (“HMST”). Pursuant to the Sichuan Acquisition Agreement, the Company sold all of the equity interests in Sichuan Senmiao Yicheng Assets Management Co., Ltd. (“Yicheng”), Sichuan Senmiao Zecheng Business Consulting Co., Ltd. (“Senmiao Consulting”) and its subsidiaries, which were our former subsidiaries in Sichuan Province of China (“former subsidiaries in Sichuan”), to HMST for nil consideration, while we undertook certain liabilities of $518,388 which were previously assumed by former subsidiaries in Sichuan(the “Disposition”). On December 31, 2025, the Disposition was completed and we ceasedour automobile Transactions and Related Services in Sichuan Province of China.
Current report
We generated default revenues of $26,025 and $33,050 from the automobile lessee’s early-termination of the contracts or other violation behaviors to the contracts during the years ended March 31, 2026 and 2025, respectively. The decrease was primarily attributable to a lower incidence of early-terminations and contractual breaches by the automobile lessees, driven by improved credit quality of our lessee base, enhanced risk management and contract monitoring practices during the year ended March 31, 2026.
Current report
Cost of revenues represents the depreciation and rental cost of automobiles, daily maintenance, insurance and other usage costs of automobiles which related to our Auto Operating Leasing. Cost of revenues kept relatively stable, primarily due to total number of our own automobiles used for operating leasing remaining substantially unchanged during the year ended March 31, 2026 as compared with the year ended March 31, 2025.
Current report
For the year ended March 31, 2026, selling, general and administrative expenses primarily consist of salary and employee benefits, rental expense, travel expenses, and other expenses. Selling, general and administrative expenses increased from $1,864,151 for the year ended March 31, 2025 to $2,426,333 for the year ended March 31, 2026, representing an increase of $562,182, or approximately 30.2%. The increase was mainly due to (1) the increase of $578,703 in professional service fees such as financial, market consulting due to our financing arrangements during the year ended March 31, 2026; (2) an increase of $42,657 in salary and employee benefits mainly due to the higher compensation scales for current executive officers; and partly offset by (3) the decrease of $25,336 in offices rental and charges in the year ended March 31, 2026.
Current report
Other income (expenses), net
Current report
For the year ended March 31, 2026, we had other income, net of $312,792, which primarily consist of the (1) a gain of $170,000 for voluntary waiver of compensation by the Company’s former directors; (2) penalty income of approximately $75,000 from the customers; (3) a gain of approximately $43,000 from historical debt forgiveness by service providers; (4) income of approximately $22,000 from the disposal of our own automobiles used for operating leases; (5) the miscellaneous other income of approximately $16,000; partially offset by (6) approximately $13,000 in offering costs allocable to the derivative liabilities for our pre-funded warrants and November 2025 private placement warrants upon closing.
Current report
Excess of warrant fair value over offering proceeds
Current report
In November 2025, weissued common shares, pre-funded warrants and the concurrent private placement warrants, generating aggregate gross proceeds of $2,841,300. We concluded that these warrants qualify as liability instruments. At the issuance date in November 2025, the fair value of the warrants was estimated at $5,737,755 using the Black-Scholes valuation model, and the $2,896,455 excess of the warrants’ fair value over the total offering proceeds was recognized as a loss in the consolidated statements of operations and comprehensive loss.
Current report
Revenue from automobile transactions and related services (discontinued operations)
Current report
Service fees from NEVs leasing
Current report
Monthly services commissions
Current report
Our former subsidiaries in Sichuan generated revenues of $65,188 and $119,428 from the monthly management and related services provided to Partner Platforms during the years ended March 31, 2026 and 2025, respectively.
Current report
Default revenue
Current report
Other Service fees
Current report
Revenue from online ride-hailing platform services (discontinued operations)
Current report
For the year ended March 31, 2026, selling, general and administrative expenses from discontinued operations related to Auto Operating Leasing, which amounted to $928,071, primarily consisted of (1) $616,586 in outsourced operating services related to automobile lease; (2) $183,298 in salary and employee benefits; (3) $86,660 in entertainment, advertising and promotion; and (4) other miscellaneous expenses.
Current report
For the year ended March 31, 2025, selling, general and administrative expenses from discontinued operations related to Auto Operating Leasing, which amounted to $759,969, primarily consisted of (1) $441,499 in salary and employee benefits; (2) $181,646 in outsourced operating services related to automobile lease; (3) $106,526 in entertainment, advertising and promotion; and (3) other miscellaneous expenses.
Current report
For the years ended March 31, 2026 and 2025, our former subsidiaries in Sichuan provided provision for credit losses of $253,942 and $1,396,034 against receivables from Jinkailong, respectively.
Current report
For the year ended March 31, 2026, our former subsidiaries in Sichuan had other income, net of $226,101 which was primarily due to deconsolidation of Corenel.
Current report
There was no interest expense or interest expense on finance leases from discontinued operations for the year ended March 31, 2026.
Current report
Gain on disposal of discontinued operations
Current report
We had a gain of $426,766 from disposal of our former subsidiaries in Sichuan during the year ended March 31, 2026, and $397,775 from disposal of XXTX during the year ended March 31, 2025, which was resulted from the net deficit of disposal entities, the realized accumulated other comprehensive loss upon disposal of disposal entities and the consideration through us undertaking of certain liabilities.
Current report
For the year ended March 31, 2025, XXTX had deferred tax benefit of $4,510, which was resulted from recognition of deferred tax assets.
Current report
Liquidity and Capital Resources
Current report
In assessing liquidity, we monitor and analyze our cash on-hand and our operating and capital expenditure commitments. Our liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. Debt financing from financial institutions and equity financings have been utilized to finance our working capital requirements.
Current report
Our business is capital intensive, and certain factors show negative trends in its liquidity position, including (1) the net loss of approximately $5.4 million for the year ended March 31, 2026; (2) accumulated deficit of approximately $50.4 million as of March 31, 2026; (3) $1.1 million of net cash outflows in operating activities from continuing operations for the year ended March 31, 2026, and (4) the net working capital deficit of approximately $3.7 million as of March 31, 2026.
Current report
However, recent financing arrangements have materially strengthened our cash position. Management evaluated and concluded that the factors aforementioned did not raise substantial doubt as to our ability to continue as a going concern.
Current report
On April 23, 2026, we entered into a certain securities purchase agreement with certain purchasers to sell an aggregate of up to 10,000,000 units (the “Units”), each Unit consisting of one (1) share of its common stock, par value $0.0001 per share, and four (4) warrants, each to purchase one (1) share of common stock, at a purchase price of $1.10 per Unit (the “April 2026 Units Private Placement”). The aggregate gross proceeds to the Company from the Offering, all Units are sold, is approximately $11.0 million.
Current report
We believe that our cash balance of approximately $3.6 million as of March 31, 2026, together with the additional gross proceeds of approximately $11.0 million collected from the April 2026 Units Private Placement, will be sufficient to meet our working capital needs in the next 12 months from the date the audited consolidated financial statements are issued. If we experienced an adverse operating environment or incurred unanticipated capital expenditure requirements, or if we determined to accelerate our growth, then additional financing may be required.
Current report
The following table summarizes our cash flows:
Current report
For the year ended March 31, 2026, we had net cash used in investing activities of $193,939 from continuing operations, which consisted of (1) the loan to a related party of $229,469; partially offset by (2) the proceeds from sales of the used-automobiles of $35,530.
Current report
For the year ended March 31, 2026, we had net cash provided by financing activities of $4,419,010, which consisted of the net inflows of $4,338,910 from continuing operations and net inflows of $80,100 from discontinued operations. The majority of net cash provided by financing activities from continuing operations consisted of: (1) net proceeds of $659,992 from the exercise of November 2021 Private Placement Warrants from an investor; (2) net proceeds of $341,251from issuance of common stock in PIPE Offering in November 2025; (3) net proceeds of $2,828,725 from issuance of common stock and pre-funded warrants in registered direct offering and concurrent private placement of warrants in November 2025; (4) borrowings from related parties of $778,307; partially offset by (5) repayments to related parties of $269,365.
Current report
For the year ended March 31, 2025, we had net cash used in financing activities of $123,720, which consisted net outflows of $11,940 from continuing operations and $111,780 from discontinued operations. The net cash used in financing activities financing activities from continuing operations was repayments to a related party.
Current report
Recent Developments
Current report
Private Placement
Current report
On November 14, 2025, the Company entered into a securities purchase agreement with certain accredited investors, providing for (i) the issuance of 1,350,000 shares of common stock, par value $0.0001 per share, and 905,000 pre-funded warrants to purchase 905,000 shares of the common stock, at a purchase price of $1.26 per share, in a registered direct offering for aggregate gross proceeds of approximately $2.8 million, and (ii) the concurrent 4,510,000 private placement warrants to purchase up to 4,510,000 shares of common stock (the “November 2025 Private Placement”). The common stock and pre-funded warrants were issued on November 17, 2025. The 905,000 pre-funded warrants have an exercise price of $0.0001 per share of common stock, are immediately exercisable and remain exercisable until exercised in full. The 4,510,000 private placement warrants were issued on June 25, 2026, have an exercise price of $1.26 per share of common stock, and have a term of 5.5 years and are exercisable at any time on or after the initial exercisability date.
Current report
On April 23, 2026, we entered into a certain securities purchase agreement with certain purchasers, pursuant to which we agreed to sell an aggregate of up to 10,000,000 units (the “Units”), each Unit consisting of one (1) share of its common stock, par value $0.0001 per share, and four (4) warrants, each to purchase one (1) share of common Stock (the “April 2026 Units Private Placement”), at a purchase price of $1.10 per Unit. The April 2026 Units Private Placement closed on June 25, 2026. All Units were sold, and the aggregate gross proceeds from the April 2026 Units Private Placement were approximately $11.0 million.
Removed paragraphs (16)
Previous report
Selling, general and administrative expenses primarily consist of salary and employee benefits, office rental expense, travel expenses, and other costs. Selling, general and administrative expenses decreased from $3,130,213 for the year ended March 31, 2024 to $2,624,120 for the year ended March 31, 2025, representing a decrease of $506,093, or approximately 16.2%. The decrease was attributable to our continuous control on costs and streamlined expenses structure during the year ended March 31, 2025. The decrease mainly consisted of (1) a decrease of $337,946 in salary and employee benefits as the average monthly number of our employees decreased from 56 for the year ended March 31, 2024 to 52 for the year ended March 31, 2025; and (2) a decrease of $158,958 in offices rental and charges in the year ended March 31, 2025.
Previous report
Other income, net
Previous report
For the year ended March 31, 2024, we had other income, net of $358,192, which primarily consist of (1) penalty income of approximately $215,000 from the customers; (2) the income of approximately $35,000 from the disposal of our right-of-use assets and our own vehicles used for operating leases; (3) commission income of approximately $34,000 from an automobile supplier; (4) aggregate subsidy from the local governments in Changsha and Chengdu of approximately $23,000; (5) income of approximately $18,000 from the additional deductions for input tax; and (6) the miscellaneous income of approximately $33,000.
Previous report
We had no interest expense for the year ended March 31, 2025, while the interest expense for the year ended March 31, 2024 was resulted from the borrowings of Corenel from a financial institution for its automobile commercial insurance by installment.
Previous report
For the year ended March 31, 2024, XXTX had other expense, net of $42,742, which primarily due to the miscellaneous other expense in its daily operations.
Previous report
Interest Expense
Previous report
For the years ended March 31, 2025 and March 31, 2024, XXTX had deferred tax benefit of $4,510 and $29,222, respectively, resulted from deferred tax, while all the subsidiaries of XXTX suffered losses for the years ended March 31, 2025 and 2024, no income taxes were recorded for the corresponding period accordingly.
Previous report
Liquidity and Going Concern
Previous report
We have financed our operations primarily through proceeds from our equity offerings, stockholder loans, commercial debt, borrowings from financial institutions and cash flow from operations.
Previous report
We had cash and cash equivalents of $833,577 as of March 31, 2025 as compared to $737,719 as of March 31, 2024. We primarily hold our excess unrestricted cash in short-term interest-bearing bank accounts at financial institutions.
Previous report
Our business is capital intensive. We have considered whether there is substantial doubt about our ability to continue as a going concern due to (1) the net loss of approximately $3.7 million for the year ended March 31, 2025; (2) accumulated deficit of approximately $45.1 million as of March 31, 2025; (3) the working capital deficit of approximately $3.0 million as of March 31, 2025.
Previous report
We do not believe that the proceeds from our future public offerings and our anticipated cash flows would be sufficient to meet our anticipated working capital requirements and capital expenditures in the ordinary course of business for the next 12 months from the date of this Report. We have determined there is substantial doubt about our ability to continue as a going concern. If we are unable to generate significant revenue, we may be required to cease or curtail our operations. We are trying to alleviate the going concern risk through the following sources:
Previous report
Based on the above considerations, we are of the opinion that we will probably not have sufficient funds to meet our working capital requirements and debt obligations as they become due one year from the filing date of this Report, if we are unable to obtain additional financing. In addition, there is no assurance that we will be successful in implementing the foregoing plans or that additional capitals will be available to us on commercially reasonable terms, or at all. There are a number of factors that could potentially arise that could undermine our plans, such as (i) changes in the demand for our services, (ii) PRC government policies, (iii) economic conditions in China and worldwide, (iv) competitive pricing in the automobile transaction and related service and ride-hailing industries, (v) changes in our relationships with key business partners, (vi) that financial institutions in China may not able to provide continued financial support to our customers, and (vii) the perception of PRC-based companies in the U.S. capital markets. Our inability to secure needed financing when required could require material changes to our business plans and could have a material adverse effect on our viability and results of operations.
Previous report
For the year ended March 31, 2024, we had net cash used in investing activities of $569,608, which consisted of the net cash outflows of $569,767 from continuing operations and net cash inflows of $159 from discontinued operations. The majority of net cash used in investing activities was $671,679 paid for the purchase of automobiles for operating lease purpose, and partially offset by the proceeds from sales of the used automobiles and rendered automobiles of $101,912.
Previous report
For the year ended March 31, 2025, we had net cash used in financing activities of $123,720, which consisted of net cash outflows of $42,427 from continuing operations and net cash outflows of $81,293 from discontinued operations. The majority of net cash used in financing activities from continuing operations consisted of: (1) principal payments made for finance lease liabilities of $44,345; (2) repayments to a related party of $11,940; partially offset by (3) repayments from a related party of $13,858. While the net cash used in financing activities from discontinued operations consisted of: (1) repayment of current borrowings to a financial institution of $59,389; and (2) repayment to a related party of $21,904.
Previous report
For the year ended March 31, 2024, we had net cash used in financing activities of $168,340, which consisted of the net cash outflows of $391,605 from continuing operations and net cash inflows of $223,265 from discontinued operations. The net cash used in financing activities from continuing operations primarily consisted of: (1) principal payments made for finance lease liabilities of $215,443; (2) repayments to related parties and affiliates of $506,766; and (3) repayment of current borrowings to a financial institution of $8,445; partially offset by (4) repayment from a related party of $339,049. While the net cash provided by financing activities from discontinued operations primarily attributable to the borrowings from a financial institution of $249,297.
Reworded paragraphs (46)
Previous wording
We are a provider of automobile transaction and related services, connecting consumers, who are mostly existing and prospective ride-hailing drivers affiliated with different operators of online ride-hailing platforms in the People’s Republic of China (“PRC” or “China”). We provide automobile transaction and related services through our majority owned subsidiaries, Chengdu Jiekai Yunli Technology Co., Ltd., a PRC limited liability company and its subsidiary (“Jiekai”), and Hunan Ruixi Financial Leasing Co., Ltd., a PRC limited liability company (“Hunan Ruixi”), and our former wholly owned subsidiary, Chengdu Corenel Technology Co., Ltd. a PRC limited liability company (“Corenel”). Substantially all of our operations are conducted in China.
Current wording
We are a provider of automobile transaction and related services, connecting consumers, who are mostly existing and prospective ride-hailing drivers affiliated with different operators of online ride-hailing platforms in the People’s Republic of China (“PRC” or “China”). We provide automobile transaction and related services in Hunan Province of China through our majority owned subsidiary, Hunan Ruixi Business Operation Management Co., Ltd., a PRC limited liability company (“Hunan Ruixi”).
Previous wording
Our Automobile Transaction and Related Services are mainly comprised of (i) automobile operating lease where we provide car rental services to individual customers to meet their personal needs with lease term no more than twelve months (the “Auto Operating Leasing”); (ii) service fees from new energy vehicles (“NEVs”) leasing where we charge NEVs lessees for a series of the services provided to them based on the chosen product solutions (the “Service for NEVs Leasing”); (iii)service fees from automobile purchase for a series of the services provided to purchasers throughout the purchase process based on the sales price of the automobiles and relevant services provided (the “ Service for Automobile Purchase”) ;(iv) monthly services where we provide management and related services to other online ride-hailing platforms we cooperated with (“Partner Platforms”) and other companies and earn commission from them (the “Auto Commissions”); (v) automobile financing where we provide our customers with auto finance solutions through financing leases (the “Auto Financing”); (vi) default expenses we charges to the lessees for early-termination the contracts or other violation behaviors to the contracts (the “Default Revenue”); and (vii) other supporting services provided to customers, including auto management and other related services (the “Auto Management Services”) and automobile sales (the “Auto Sales”). We started our facilitation and supporting services in November 2018, the sale of automobiles in January 2019, and financial and operating leasing in March 2019, respectively.
Current wording
Our Automobile Transaction and Related Services are mainly comprised of (i) automobile operating lease where we provide car rental services to individual customers to meet their personal needs with lease term no more than twelve months (the “Auto Operating Leasing”); (ii) service fees from new energy vehicles (“NEVs”) leasing where we charge NEVs lessees for a series of the services provided to them based on the chosen product solutions (the “Service for NEVs Leasing”); (iii)service fees from automobile purchase for a series of the services provided to purchasers throughout the purchase process based on the sales price of the automobiles and relevant services provided (the “ Service for Automobile Purchase”) ;(iv) monthly services where we provide management and related services to other online ride-hailing platforms we cooperated with (“Partner Platforms”) and other companies and earn commission from them (the “Auto Commissions”); (v) automobile financing where we provide our customers with auto finance solutions through finance leases (the “Auto Financing”); (vi) default fees we charges to the lessees for early-termination the contracts or other violation behaviors to the contracts (the “Default Revenue”); and (vii) other supporting services provided to customers, including auto management and other related services (the “Auto Management Services”) and automobile sales (the “Auto Sales”). We started our facilitation and supporting services in November 2018, the sale of automobiles in January 2019, and financial and operating leasing in March 2019, respectively.
Previous wording
Since November 22, 2018, the acquisition date of Hunan Ruixi, and as of March 31, 2025, we have facilitated financing for an aggregate of 312 automobiles with a total value of approximately $5.3 million, sold an aggregate of 1,516 automobiles with a total value of approximately $14.5 million and delivered 2,116 automobiles under operating leases and 191 automobiles under financing leases to customers, the vast majority of whom are online ride-hailing drivers.
Current wording
Since November 22, 2018, the acquisition date of Hunan Ruixi, and as of March 31, 2026, we have facilitated financing for an aggregate of 312 automobiles with a total value of approximately $5.4 million, sold an aggregate of 381 automobiles with a total value of approximately $3.7 million and delivered 470 automobiles under operating leases and 197 automobiles under finance leases to customers, the vast majority of whom are online ride-hailing drivers.
Previous wording
During the year ended March 31, 2025, our Auto Operating Leasing, Auto Commissions, Auto Financing and other services income accounted for approximately 82.6%, 4.3%, 2.8%, and 10.3% of our total revenue from our automobile transactions and related services, respectively, while our Auto Operating Leasing, Auto Commissions, Auto Financing, and other services income accounted for approximately 88.7%, 4.5%, 1.3%, and 5.5% for the year ended March 31, 2024, respectively.
Current wording
During the year ended March 31, 2026, our Auto Operating Leasing, Auto Financing, Auto Commissions, and other services income accounted for approximately 87.2%, 4.4%, 1.1%, and 7.3% of our total revenue from our automobile transactions and related services, respectively, while our Auto Operating Leasing, Auto Financing, Auto Commissions, and other services income accounted for approximately 88.9%, 4.9%, 1.4%, and 4.8% for the year ended March 31, 2025, respectively.
Previous wording
Due to the fierce competition of the online ride-hailing industry, XXTX had suffered loss in the past. Since December 2023, XXTX had engaged Anhui Lianma Technology Co., Ltd. (“Anhui Lianma”), a third-party to co-operate the online ride-hailing platform by outsourcing certain daily operation work to Anhui Lianma in most of cities it operates platform in XXTX and Anhui Lianma will jointly share the operational profits, with the specific calculation method being defined in the cooperation agreement. However, considering the changes in online ride-hailing industry and development plan of the Company, on August 8, 2024, we entered into the Acquisition Agreement with the Purchaser, and certain other parties thereto. Pursuant to the Acquisition Agreement, the Purchaser acquired all of the equity interests the XXTX at a total purchase price of zero, while taking over certain liabilities of XXTX as defined in the Acquisition Agreement. On August 20, 2024, the acquisition was completed and we ceased the online ride-hailing platform services.
Current wording
Due to the fierce competition of the online ride-hailing industry, XXTX had suffered loss in the past. Since December 2023, XXTX had engaged Anhui Lianma Technology Co., Ltd. (“Anhui Lianma”), a third-party to co-operate the online ride-hailing platform by outsourcing certain daily operation work to Anhui Lianma in most of cities it operates platform in XXTX and Anhui Lianma will jointly share the operational profits, with the specific calculation method being defined in the cooperation agreement. However, considering the changes in online ride-hailing industry and development plan of the Company, on August 8, 2024, we entered into the XXTX Acquisition Agreement with the Purchaser, and certain other parties thereto. Pursuant to the XXTX Acquisition Agreement, the Purchaser acquired all of the equity interests in XXTX at a total purchase price of zero, while taking over certain liabilities of XXTX as defined in the XXTX Acquisition Agreement. On August 20, 2024, the Acquisition was completed and we ceased the online ride-hailing platform services.
Previous wording
Our revenue growth has been largely driven by the expansion of our automobile lessee base and the corresponding revenue generated from operating and financial leasing. We acquire customers for our Automobile Transaction and Related Services through the network of third-party sales teams, referral from online ride-hailing platforms and our own efforts including online advertising and billboard advertising. We also send out fliers and participate in trade shows to advertise our services. We plan to maintain the number of our customers by marketing our companies to our existing and prospective automobile lessees in the cities we now operate in. We expect to keep promoting the growth of our automobile rental business with automobile rental solutions/incentives specifically targeted at drivers using our Partner Platforms. An effective cross-selling strategies between our automobile leasing business and our Partner Platforms is important to our expansion and revenue growth. We also plan to strengthen our marketing efforts through the collaboration with certain automobile dealers and through our own team by employing more experienced staff, sharing market resources with our equity investee company, and improving the quality and variety of our services. As of March 31, 2025, we had 3 employees in our own sales department.
Current wording
Our revenue growth has been largely driven by the expansion of our automobile lessee base and the corresponding revenue generated from operating and finance lease. We acquire customers for our Automobile Transaction and Related Services through the network of third-party sales teams, referral from online ride-hailing platforms and our own efforts including online advertising and billboard advertising. We also send out fliers and participate in trade shows to advertise our services. We plan to maintain the number of our customers by marketing our companies to our existing and prospective automobile lessees in the cities we now operate in. We expect to keep promoting the growth of our automobile rental business with automobile rental solutions/incentives specifically targeted at drivers using our Partner Platforms. An effective cross-selling strategies between our automobile leasing business and our Partner Platforms is important to our expansion and revenue growth. We also plan to strengthen our marketing efforts through the collaboration with certain automobile dealers and through our own team by employing more experienced staff, sharing market resources with our equity investee company, and improving the quality and variety of our services. As of March 31, 2026, we had one employee in our own sales department.
Previous wording
Due to the fierce competition of online ride-hailing industry in those cities we operated in, we have witnessed a high turn-over rate on the short-term car rentals during the year ended March 31, 2025. To meet the demand in Chengdu and Changsha, we have purchased and leased automobiles from third parties for our operating lease. The daily management and timely maintenance of leased automobiles will have a significant effect on the stability and potential growth of our income from leasing automobiles in the next twelve months. The effective management, including maintaining the high turn-over rate of our automobiles through our proprietary system and experienced auto-management team could provide in-time delivery and qualified automobiles to potential lessees, either for personal use or providing online ride-hailing services. As of March 31, 2025, for parking and management of automobiles for operating lease, we had one parking lot and 3 employees in Changsha, and we also share the parking lot with our equity investee company, Jinkailong in Chengdu. During the years ended March 31, 2025 and 2024, the average utilization of the automobiles for operating lease was approximately 89.0% and 79.7%, respectively.
Current wording
Due to the fierce competition of online ride-hailing industry in those cities we operated in, we have witnessed a high turn-over rate on the short-term car rentals during the year ended March 31, 2026. To meet the demand in Changsha, we have purchased automobiles for our operating lease. The daily management and timely maintenance of leased automobiles will have a significant effect on the stability and potential growth of our income from leasing automobiles in the next twelve months. The effective management, including maintaining the high turn-over rate of our automobiles through our proprietary system and experienced auto-management team could provide in-time delivery and qualified automobiles to potential lessees, either for personal use or providing online ride-hailing services. As of March 31, 2026, for parking and management of automobiles for operating lease, we had one parking lot and three employees in Changsha. During the years ended March 31, 2026 and 2025, the average utilization of the automobiles for operating lease was approximately 88.3% and 92.3%, respectively.
Previous wording
Meanwhile, in order to strengthen our market position in certain cities, our subsidiaries, Hunan Ruixi and Jiekai, have built up cooperation relationships with Partner Platforms, such as Hunan Didi Technology Co., Ltd., Chengdu Anma Zhixing Technology Co., Ltd., Sichuan Peitu Kuaixing Technology Co., Ltd. And Chongqing Yiqizhao Technology Co., Ltd. Chengdu Branch, whereby the online ride-hailing requests and orders shall be completed on Partner Platforms utilizing the network of cars and drivers of us while Hunan Ruixi and Jiekai earned rental income from drivers and earned commissions from Partner Platforms.
Current wording
Meanwhile, in order to strengthen our market position, Hunan Ruixi has built up cooperation relationships with Partner Platforms, such as Hunan Didi Chuxing Technology Co., Ltd., whereby the online ride-hailing requests and orders shall be completed on Partner Platforms utilizing the network of cars and drivers of us while Hunan Ruixi earned rental income from drivers and earned commissions from Partner Platforms.
Previous wording
For receivables from Auto Operating Leasing, we usually settle the rental income with each online ride-hailing driver monthly based on the product solutions they chose. In accordance with the development of the operating lease business, our Partner Platforms, such as Gaode, agree to temporarily “lock-up” the fares of the rides which the driver earned from the platform to ensure the timely collection of our rental receivables from them. As of March 31, 2025, we had accounts receivable of operating lease of approximately $20,000 in total. Besides, during the year ended March 31, 2025, we settled our commissions with the Partner Platforms for our online ride-hailing platform services and automobile rental income on a monthly basis.
Current wording
For receivables from Auto Operating Leasing, we usually settle the rental income with each online ride-hailing driver monthly based on the product solutions they chose. In accordance with the development of the operating lease business, our Partner Platforms, such as Didi, agree to temporarily “lock-up” the fares of the rides which the driver earned from the platform to ensure the timely collection of our rental receivables from them. As of March 31, 2026, we had no accounts receivable of operating lease. Besides, during the year ended March 31, 2026, we settled our commissions with the Partner Platforms for our automobile rental income on a monthly basis.
Previous wording
We manage the credit risk arising from the default of automobile purchasers and lessees by performing credit checks on each automobile purchaser or lessee based on the credit reports from People’s Bank of China and third-party credit rating companies, and personal information including residence, ethnicity group, driving history and involvement in legal proceeding. Our risk department continuously monitors the payment by each purchaser and sends them payment reminders. We also keep monitoring the daily gross fare earned by the online ride-hailing drivers, who are our majority customers and run their business through our Partner Platforms during the year ended March 31, 2025. We do this so that we can evaluate their financial conditions and provide them with assistance including the transfer of automobile to a new driver if they are no longer interested in providing ride-hailing services or are unable to earn enough income to make monthly lease/loan payments. We also charge default expenses from customers for their behaviors violated to the contracts.
Current wording
We manage the credit risk arising from the default of automobile purchasers and lessees by performing credit checks on each automobile purchaser or lessee based on the credit reports from People’s Bank of China and third-party credit rating companies, and personal information including residence, ethnicity group, driving history and involvement in legal proceeding. Our risk department continuously monitors the payment by each purchaser and sends them payment reminders. We also keep monitoring the daily gross fare earned by the online ride-hailing drivers, who are our majority customers and run their business through our Partner Platforms during the year ended March 31, 2026. We do this so that we can evaluate their financial conditions and provide them with assistance including the transfer of automobile to a new driver if they are no longer interested in providing ride-hailing services or are unable to earn enough income to make monthly lease/loan payments. We also charge default fees from customers for their behaviors violated to the contracts.
Previous wording
Further, the automobiles subject to our financing leases are not collateralized by us. As of March 31, 2025, the total value of non-collateralized automobiles was close to the amount of finance lease receivables since it was on a straight-line basis. We believe our risk exposure of financing leasing is immaterial as we have experienced limited default cases and we are able to re-lease those automobiles to drivers under financing leases.
Current wording
Further, the automobiles subject to our finance leases are not collateralized by us. As of March 31, 2026, the total value of non-collateralized automobiles was close to the amount of finance lease receivables since it was on a straight-line basis. We believe our risk exposure of financing leasing is immaterial as we have experienced limited default cases and we are able to re-lease those automobiles to drivers under finance leases.
Previous wording
The demand for our services depends on overall market conditions of the online ride-hailing industry in China. The continuous growth of the urban population places increasing pressure on the urban transportation and the improvement of living standards has increased the market demand for quality travel in China. Traditional taxi service is limited, and the emerging online platforms have created good opportunities for the development of the online ride-hailing service market. The market value is expected to increase from RMB354.7 billion in 2024 to RMB751.3 billion in 2028, owing to rising consumer demand for economical mobility options and an amplified penetration of shared mobility services, especially in lower-tier cities. According to the 55th Statistical report on Internet Development in China published in January 2025 by the China Internet Network Information Center (the “CNNIC”), the number of online ride-hailing service users had reached 539 million by the end of December 2024, and took approximately 48.7% of the total number of Chinese internet users. In addition, in recent years, aggregation platforms have gained rising significance in the shared mobility industry. According to Frost & Sullivan, the portion of ride hailing orders fulfilled through aggregation platforms increased from 3.5% in 2018 to 30.0% in 2023, and is expected to further increase to 49.0% by 2028. The online ride-hailing industry is also facing increasing competition in China and is attracting more capital investment. For example, Dida Inc. and Chenqi Technology Limited were listed on the Hong Kong Stock Exchange in June 2024, and CaoCao Inc. have filed their prospectuses again to the Stock Exchange of Hong Kong Limited April 2025.
Current wording
The demand for our services depends on overall market conditions of the online ride-hailing industry in China. The continuous growth of the urban population places increasing pressure on the urban transportation and the improvement of living standards has increased the market demand for quality travel in China. Traditional taxi service is limited, and the emerging online platforms have created good opportunities for the development of the online ride-hailing service market. The market value is expected to increase from RMB354.7 billion in 2024 to RMB751.3 billion in 2028, owing to rising consumer demand for economical mobility options and an amplified penetration of shared mobility services, especially in lower-tier cities. According to the 57th Statistical report on Internet Development in China published in February 2026 by the China Internet Network Information Center (the “CNNIC”), the number of online ride-hailing service users had reached 539 million by the end of December 2025, and took approximately 47.9% of the total number of Chinese internet users. In addition, in recent years, aggregation platforms have gained rising significance in the shared mobility industry. According to Frost & Sullivan, the portion of ride hailing orders fulfilled through aggregation platforms increased from 3.5% in 2018 to 30.0% in 2023, and is expected to further increase to 49.0% by 2028. The online ride-hailing industry is also facing increasing competition in China and is attracting more capital investment. For example, Dida Inc. Chenqi Technology Limited and CaoCao Inc. were listed on the Hong Kong Stock Exchange in June 2024 and June 2025, respectively.
Previous wording
However, the participants in the online ride-hailing industry are facing increasingly fierce competitions. According to the Ministry of Transportation (the “MOT”) of the People’s Republic of China, as of April 30, 2025, approximately 382 online ride-hailing platforms have obtained booking taxi operating licenses, representing an increase of approximately 9% as compared with the one as of April 30, 2024. And the total volume of online ride-hailing orders was approximately 727 million in April 2025 in China, representing a decrease of approximately 12% as compared with the one as of April 30, 2024. Meanwhile, approximately 3.21 million online booking taxi transportation certificates and approximately 7.48 million online booking taxi driver’s licenses were issued nationwide in China, representing an increase of approximately 13% and 10% as compared with the ones as of March 31, 2024, respectively. Since 2023, the municipal transportation bureaus in a series of cities in China have released operational dynamics and risk warnings for the online ride-hailing industry, stating that the online ride-hailing market has become saturated. They remind enterprises and practitioners who intend to engage in online ride-hailing services should have a detailed understanding of relevant regulations, conduct market research, fully consider changes in operating income due to factors such as supply and demand, market conditions, fluctuations or continuous declines, objectively evaluate the actual income level of industry practitioners, and make rational and prudent career choices.
Current wording
However, the participants in the online ride-hailing industry are facing increasingly fierce competitions. According to the Ministry of Transportation (the “MOT”) of the People’s Republic of China, as of April 30, 2026, approximately 399 online ride-hailing platforms have obtained booking taxi operating licenses, representing an increase of approximately 4% as compared with the one as of April 30, 2025. And the total volume of online ride-hailing orders was approximately 727 million in April 30, 2026 in China, representing an increase of approximately 27% as compared with the one as of April 30, 2025. Meanwhile, approximately 3.21 million online booking taxi transportation certificates and approximately 7.48 million online booking taxi driver’s licenses were issued nationwide in China as of December 31, 2024, respectively. Since 2023, the municipal transportation bureaus in a series of cities in China have released operational dynamics and risk warnings for the online ride-hailing industry, stating that the online ride-hailing market has become saturated. They remind enterprises and practitioners who intend to engage in online ride-hailing services should have a detailed understanding of relevant regulations, conduct market research, fully consider changes in operating income due to factors such as supply and demand, market conditions, fluctuations or continuous declines, objectively evaluate the actual income level of industry practitioners, and make rational and prudent career choices.
Previous wording
On November 5, 2016, the Municipal Communications Commission of Chengdu City and a number of municipal departments jointly issued the “Implementation Rules for the Administration of Online Booking Taxi Management Services for Chengdu”, which was abolished and replaced by the updated version issued on July 26, 2021. On August 10, 2017, the Transportation Commission of Chengdu further issued the guidelines on compliance requirements for online ride-hailing businesses, including Working Process for the Online Appointment of Taxi Drivers Qualification Examination and Issuance and Online Appointment Taxi Transportation Certificate Issuance Process. On November 28, 2016, Guangzhou Municipal People’s Government promulgated Interim Measures for the Management of Online Ride Hailing Operation and Service in Guangzhou, as amended on November 14, 2019. According to these regulations and guidelines, three licenses /certificates are required for operating the online ride-hailing business in Chengdu and Guangzhou: (1) the ride-hailing service platform should obtain the online booking taxi operating license; (2) the automobiles used for online ride-hailing should obtain the online booking taxi transportation certificate (“automobile certificate”); (3) the drivers should obtain the online booking taxi driver’s license (“driver’s license”). Besides, all the new cars used for online ride-hailing in Chengdu should be NEVs since July 2021.
Current wording
On April 1, 2017, the General Office of Changsha City People’s Government issued the “Detailed Rules for the Administration of Online Car-Hailing Business Services of Changsha City”, which was abolished and replaced by the updated version issued on July 23, 2018. On August 20, 2025, the Changsha Municipal Bureau of Transportation further issued “Announcement of Changsha Municipal Bureau of Transportation on Further Improving the Issuance of Vocational Qualification Certificates for Taxi Drivers and Other Related Matters”. According to these regulations and guidelines, three licenses /certificates are required for operating the online ride-hailing business in Changsha: (1) the ride-hailing service platform should obtain the online booking taxi operating license; (2) the automobiles used for online ride-hailing should obtain the online booking taxi transportation certificate (“automobile certificate”); (3) the drivers should obtain the online booking taxi driver’s license (“driver’s license”). Besides, all newly added cars used for online ride-hailing in Changsha shall be NEVs starting from 2027.
Previous wording
However, approximately 43% of ride-hailing drivers who leased our automobiles or used our services have not obtained the driver’s license for online ride-hailing services as of March 31, 2025 while all of the cars used for online ride-hailing services which we provided management services have the automobile certificate. Without requisite automobile certificate or driver’s license, these drivers may be suspended from providing ride-hailing services, confiscated their illegal income and subject to fines of up to 10 times of their illegal income. Meanwhile, during the year ended March 31, 2025, Gaode conducted several rounds of compliance checks in Chengdu and other cities and reduced the number of orders dispatched platforms that allowed drivers to provide services without appropriate licenses or certificates. We assisted drivers to obtain the required certificate and license for our Automobile Transaction and Related Services. However, there was no guarantee that all of the drivers who run their online ride-hailing business would be able to obtain all the certificates and licenses. These Partner Platforms may not allow unqualified drivers who lease our automobiles to drive through these platforms, or reduce their commission income, so that they may not be able to earn enough income from those Partner Platforms to pay our rental fees. Our business and results of operations shall be materially and adversely affected if we could not serve qualified drivers or our served drivers are suspended from providing ride-hailing services.
Current wording
As of March 31, 2026, all ride-hailing drivers who leased our automobiles or used our services have obtained the driver’s license for online ride-hailing services, and all of the cars used for online ride-hailing services which we provided management services have the automobile certificate. Without requisite automobile certificate or driver’s license, these drivers may be suspended from providing ride-hailing services, confiscated their illegal income and subject to fines of up to 10 times of their illegal income. We assisted drivers to obtain the required certificate and license for our Automobile Transaction and Related Services. However, there was no guarantee that all of the drivers who run their online ride-hailing business would be able to obtain all the certificates and licenses. These Partner Platforms may not allow unqualified drivers who lease our automobiles to drive through these platforms, or reduce their commission income, so that they may not be able to earn enough income from those Partner Platforms to pay our rental fees. Our business and results of operations shall be materially and adversely affected if we could not serve qualified drivers or our served drivers are suspended from providing ride-hailing services.
Previous wording
As we focus on our automobile rental business, we expect revenue from our automobile rental to continuously account for a majority of our revenues. We plan to provide a series of product solutions to sustain and further increase the number of our automobiles for operating leases.
Current wording
We started generating revenue from Automobile Transaction and Related Services from our acquisition of Hunan Ruixi on November 22, 2018. As we focus on our automobile rental business, we expect revenue from our automobile rental to continuously account for a majority of our revenues. We provide a series of product solutions to sustain and further increase the number of our automobiles for operating leases.
Previous wording
Revenue from our automobile transaction and related services mainly includes operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, default revenue, financing revenues, service fees from automobile purchase services, and other services fees, which accounted for approximately 82.6%, 5.4%, 4.3%, 3.1%, 2.8%, 1.1% and 0.7%, respectively, of the total revenue during the year ended March 31, 2025. Meanwhile, operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, default revenue, financing revenues, service fees from automobile purchase services and other services fees, which accounted for approximately 88.7%, 1.0%, 4.5%, 2.3%, 1.3%, 0.8% and 1.4%, respectively, of the total revenue during the year ended March 31, 2024.
Current wording
Revenue from our automobile transaction and related services mainly includes operating lease revenues from automobile rentals, financing revenues, service fees from NEVs leasing, default revenue, monthly services commissions, service fees from automobile purchase services, and other services fees, which accounted for approximately 87.2%, 4.4%, 4.2%, 1.7%, 1.1%, 0.6% and 0.8%, respectively, of the total revenue during the year ended March 31, 2026. Meanwhile, operating lease revenues from automobile rentals, financing revenues, default revenue, monthly services commissions, service fees from automobile purchase services, and other services fees, which accounted for approximately 88.9%, 4.9%, 1.7%, 1.4%, 2.0% and 1.1%, respectively, of the total revenue during the year ended March 31, 2025.
Previous wording
We generate revenues from leasing our own automobiles and sub-leasing automobiles leased from third-parties and related parties or rendered by online ride-hailing drivers with their authorization for a lease term of no more than twelve months. The decrease in rental income of $1,030,045 or approximately 26.9% during the year ended March 31, 2025 was mainly due to the decrease in the number of the automobiles leased for operating lease as well as average monthly rental income per automobile. We leased 826 automobiles with an average monthly rental income of approximately $410 per automobile, resulting in a rental income of $2,800,992, including rental income of $46,461 from Jinkailong and other related parties, for the year ended March 31, 2025. We leased over 1,400 automobiles with an average monthly rental income of approximately $485 per automobile, resulting in a rental income of $3,831,037, including rental income of $34,742 from Jinkailong, for the year ended March 31, 2024.
Current wording
We generate revenues from leasing our own automobiles by online ride-hailing drivers with their authorization, with the majority of lease term of no more than 12 months. The decrease in rental income of $336,570 or approximately 20.0% during the year ended March 31, 2026 was mainly due to the decrease in the number and average monthly rental of automobiles leased for operating lease. We leased approximately 340 automobiles with an average monthly rental income of approximately $381 per automobile, resulting in a rental income of $1,348,542 for the year ended March 31, 2026. While we approximately 366 automobiles with an average monthly rental income of approximately $437 per automobile, resulting in a rental income of $1,685,112 for the year ended March 31, 2025.
Previous wording
We started our financial leasing business in March 2019 and began to generate interest income from providing financial leasing services to ride-hailing drivers in April 2019. We also charge the customers of our automobile financing facilitation services interest on their monthly payments which cover purchase price of automobile and our services fees and facilitation fees for terms of 36 or 48 months. We recognized a total interest income of $93,473 from an average monthly number of 46 automobiles and $57,677 from an average monthly number of 33 automobiles during the years ended March 31, 2025 and 2024, respectively. The increase was due to the monthly payment we charged to customers and the average number of automobiles served for financial leasing increased during the year ended March 31, 2025.
Current wording
We started our finance lease business in March 2019 and began to generate interest income from providing finance lease services to ride-hailing drivers in April 2019. We also charge the customers of our automobile financing facilitation services interest on their monthly payments which cover purchase price of automobile and our services fees and facilitation fees for terms of 24 or 48 months. We recognized a total interest income of $68,011 from an average monthly number of 46 automobiles and $93,473 from an average monthly number of 46 automobiles during the years ended March 31, 2026 and 2025, respectively. The decrease was due to the decreased outstanding principal finance lease upon periodic rental payments during the year ended March 31, 2026.
Previous wording
We generated revenues of $184,625 and $45,231 from leasing NEVs by charging leases service fees during the year ended March 31, 2025 and 2024, respectively. The amount of services fees for NEVs leasing were based on our product solutions timely in accordance which adjusted with different market conditions.
Current wording
We generated revenues of $64,833 and $0 from leasing NEVs by charging leases service fees during the years ended March 31, 2026 and 2025, respectively. The amount of services fees for NEVs leasing were based on our timely product solutions which adjusted in accordance with different market conditions.
Previous wording
We generated revenues of $145,227 and $196,099 from the monthly management and related services provided to our Partner Platforms and other companies during the years ended March 31, 2025 and 2024, respectively. The decrease of $50,872 or approximately 25.9% was due to decrease in the number of the automobiles and drivers we served, who ran their business through the Partner Platforms.
Current wording
We generated revenues of $17,485 and $25,799 from the monthly management and related services provided to our Partner Platforms and other companies during the years ended March 31, 2026 and 2025, respectively. The decrease was due to the decrease in the number of automobiles leased to online ride-hailing drivers for operating lease during the year ended March 31, 2026, which in turn led to lower commission income from the Partner Platforms related to the monthly management and related services.
Previous wording
We generated revenues of $38,696 and $36,637 from the automobile purchase services during the years ended March 31, 2025 and 2024, respectively. The increase was due to the number of automobiles purchase transactions increased to 28 during the year ended March 31, 2025 from 22 in the same period in 2024.
Current wording
We generated revenues of $10,046 and $38,696 from the automobile purchase services during the years ended March 31, 2026 and 2025, respectively. The decrease was due to the number of automobiles purchase transactions decreased to 8 during the year ended March 31, 2026 from 28 during the year ended March 31, 2025.
Previous wording
We generate other revenues from other miscellaneous service fees charged to our customers during the years ended March 31, 2025 and 2024. Other services fees mainly include the maintenance fees charged to our customers pursuant to certain new production solutions.
Current wording
We generate other revenues from other miscellaneous service fees charged to our customers during the years ended March 31, 2026 and 2025. Other services fees mainly include the maintenance fees charged to our customers pursuant to certain new product solutions.
Previous wording
We had gross profit of $849,803 and $924,731, respectively, during the years ended March 31, 2025 and 2024. The decrease of $74,928 was mainly due to the decrease in gross profit from Auto Operating Leasing. The following table sets forth the breakdown of gross profit by major revenue source for the years ended March 31, 2025 and 2024:
Current wording
We had gross profit of $210,200 and $571,724, respectively, during the years ended March 31, 2026 and 2025. The following table sets forth the breakdown of gross profit by major revenue source for the years ended March 31, 2026 and 2025:
Previous wording
We had a gross profit of $261,723 from our Auto Operating Leasing during the year ended March 31, 2025, which decreased by $174,014 from a gross profit of $435,737 in the year ended March 31, 2024. The decrease was attributable to the decrease in average monthly rental income from approximately $485 for the year ended March 31, 2024 to approximately $410 for the year ended March 31, 2025, as well as a decrease in the number of the automobiles leased for operating lease decreased from over 1,400 for the year ended March 31, 2024 to 826 for the year ended March 31, 2025. However, our overall gross margin slightly increased to approximately 25.1% for the year ended March 31, 2025 from approximately 21.4% for the year ended March 31, 2024 due to an increase in revenues from other services with much higher gross margin.
Current wording
We had a gross profit of $12,615 from our Auto Operating Leasing during the year ended March 31, 2026, which decreased by $348,050 from a gross profit of $360,665 in the year ended March 31, 2025. The decrease was attributable to the average monthly rental of automobiles leased for operating lease decreased from $437 in the year ended March 31, 2025 to $381 in the year ended March 31, 2026. As the gross margin of the revenues from our operating leasing decreased, our overall gross profit margin decreased to approximately 13.6% for the year ended March 31, 2026 from approximately 30.2% for the year ended March 31, 2025.
Previous wording
We re-evaluated the possibility of collection of unsettled balances from customers/suppliers of our automobile transactions and related services, and we provided provision for credit losses of $2,093,199 against receivables from Jinkailong for the year ended March 31, 2025. We provided provision for credit losses of $1,703,563 against receivables from Jinkailong, $17,974 against the security deposit not returned for over one year after the end of the cooperation, and $1,557 and $2,652 against receivable and other receivable for unsettled balances from a historical customer, respectively, for the year ended March 31, 2024.
Current wording
We re-evaluated the possibility of collection of unsettled balances from customers/suppliers of our automobile transactions and related services, and we provided provision for credit losses of $422,064 and $697,165 against receivables from Jinkailong for the years ended March 31, 2026 and 2025, respectively.
Previous wording
In October 2023, we entered into three different consulting and services agreements (the “Consulting Agreements”) with three consultants (the “Consultants”), pursuant to which we engaged the Consultant to provide certain merger and acquisition consulting service, market research and business development advisory services, and financial consulting services, respectively. We issued an aggregate of 1,500,000 shares of our common stock in November 2023 to settle the compensation for the services. We did not have similar transaction during the year ended March 31, 2025.
Current wording
In November 2025, we entered into the Consulting Agreement with the Consultant, pursuant to which we engaged the Consultant to provide consulting services. We issued an aggregate of 200,000 shares of our common stock in November 2025 at $1.25 per share to settle the compensation for the services. We did not have similar transaction during the year ended March 31, 2025.
Previous wording
For the year ended March 31, 2025, we had other income, net of $211,254, which primarily consist of the (1) a gain of approximately $397,000 from deconsolidation of XXTX; (2) penalty income of approximately $97,000 from the customers; partially offset by (3) a loss of $197,000 from the termination of an automobiles purchase agreement; (4) the expense of approximately $78,000 for processing automobile violation fines; (5) the expense of approximately $25,000 for liquidated damages and compensation fee for litigation; (6) the expense of approximately $20,000 from the termination of our right-of-use assets for an exhibition hall we leased in Changsha; and (7) the miscellaneous other income, net of approximately $37,000.
Current wording
For the year ended March 31, 2025, we had other expenses, net of $121,491, which primarily consist of (1) a loss of $197,000 from the termination of an automobiles purchase agreement; (2) the expense of approximately $20,000 from the termination of our right-of-use assets for an exhibition hall we leased in Changsha; (3) the miscellaneous income, net of approximately $1,000; partially offset by (4) the penalty income of approximately $97,000 from the customers.
Previous wording
Warrants issued in our registered direct offerings that took place in June 2019, February 2021 and May 2021, and the August 2020 underwritten public offering, and the November 2021 private placement were classified as liabilities under the caption “Derivative Liabilities” in the consolidated balance sheet and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. The change in fair value of derivative liabilities for the years ended March 31, 2025 and 2024 was a gain of $204,242 and $212,949, respectively. The following table sets forth the breakdown of the gain in fair value of derivative liabilities for the years ended March 31, 2025 and 2024:
Current wording
Warrants issued in our registered direct offerings that took place in February 2021, May 2021 and November 2025, and the August 2020 underwritten public offering, and the November 2021 and November 2025 private placement were classified as liabilities under the caption “Derivative Liabilities” in the consolidated balance sheet and recorded at estimated fair value at each reporting date, computed using the Black-Scholes valuation model. The change in fair value of derivative liabilities for the years ended March 31, 2026 and 2025 was a gain of $202,959 and $204,242, respectively. The following table sets forth the breakdown of the gain (loss) in fair value of derivative liabilities for the years ended March 31, 2026 and 2025:
Previous wording
Generally, our subsidiaries are subject to enterprise income tax on their taxable income in China at a rate of 25%. The enterprise income tax is calculated based on the entity’s global income as determined under PRC tax laws and accounting standards. All the subsidiaries in China suffered losses and no tax expense was recorded for the years ended March 31, 2025, while we had current income tax of $20,206 represented the provision of enterprise income tax resulting from the taxable income from Jiekai for the year ended March 31, 2024.
Current wording
Generally, our subsidiary Hunan Ruixi is subject to enterprise income tax on its taxable income in China at a rate of 25%. And the applicable tax rate of our HK subsidiary, Senmiao HK, for the first HKD$2 million of assessable profits is 8.25% and assessable profits above HKD$2 million will continue to be subject to the rate of 16.5% for corporations in Hong Kong. The enterprise income tax is calculated based on the entity’s global income as determined under PRC tax laws and accounting standards. With the exception of Senmiao HK, which generated profits primarily from tax-exempt interest income on bank deposits, all entities suffered losses. Accordingly, no tax expense was recorded for the years ended March 31, 2026 and 2025.
Previous wording
As a result of the foregoing, net loss from continuing operations for the year ended March 31, 2025 was $3,467,165, representing a decrease of $387,041 from net loss of $3,854,206 for the year ended March 31, 2024.
Current wording
As a result of the foregoing, net loss from continuing operations for the year ended March 31, 2026 was $5,268,901, representing an increase of $3,362,060 from net loss of $1,906,841 for the year ended March 31, 2025.
Previous wording
The results of discontinued operations mainly consist of the financial figures of our former subsidiary, XXTX. As of August 20, 2024, we deconsolidated XXTX and its business result was included in our online ride-hailing platform services before we deconsolidated its financial figures.
Current wording
The result of discontinued operations was the financial figures of our former subsidiary, XXTX and former subsidiaries in Sichuan. As of December 31, 2025, we deconsolidated former subsidiaries in Sichuan and its business result was included in our automobile transactions and related services before we deconsolidated its financial figures. As of August 20, 2024, we deconsolidated XXTX and its business result was included in our online ride-hailing platform services before we deconsolidated its financial figures.
Previous wording
We generated default revenues of $105,025 and $100,763 from the automobile lessee’s early-termination of the contracts or other violation behaviors to the contracts during the years ended March 31, 2025 and 2024, respectively.
Current wording
Our former subsidiaries in Sichuan generated default revenues of $30,190 and $71,975 from the automobile lessee’s early-termination of the contracts or other violation behaviors to the contracts during the years ended March 31, 2026 and 2025, respectively.
Previous wording
Cost of revenues represents the amortization of ROUs, depreciation and rental cost of automobiles, daily maintenance and insurance expense of automobiles which related to our Auto Operating Leasing. Cost of revenues decreased by $856,031 or approximately 25.2% during the year ended March 31, 2025 as compared with the year ended March 31, 2024, mainly due to a decrease in the monthly average number of the automobiles leased from the third parties for operating lease from 470 in the year ended March 31, 2024 to 293 in the year ended March 31, 2025. During years ended March 31, 2025 and 2024, we paid $114,368 and $472,848, respectively, to related parties for costs of automobiles under operating leases.
Current wording
During the years ended March 31, 2026 and 2025, cost of revenues from discontinued operations of $919,715 and $1,214,822, respectively. These costs represented the amortization of ROUs, rental cost of automobiles, daily maintenance and insurance expense of automobiles which related to Auto Operating Leasing, including $110,328 and $114,368 paid to related parties for rental costs of automobiles under operating leases for the years ended March 31, 2026 and 2025, respectively.
Previous wording
Cost of revenues from discontinued operations represents technical service charges, insurance and other expenses related to Online Ride-Hailing Platform Services. During the year ended March 31, 2025, cost of revenues decreased as compared with the year ended March 31, 2024, mainly due to the decrease in direct expense and technical service fees of online ride-hailing platform services due to the decrease in the number of completed orders.
Current wording
During the year ended March 31, 2025, cost of revenues from discontinued operations of $247,025 represented the technical service charges, insurance and other expenses which related to Online Ride-Hailing Platform Services.
Previous wording
Selling, general and administrative expenses from discontinued operations primarily consisted of (1) $64,734 in salary and employee benefits; (2) $37,688 in depreciation of office equipment and amortization of intangible assets; (3) $31,499 in entertainment, advertising and promotion; and (4) other miscellaneous expenses in the year ended March 31, 2025.
Current wording
For the year ended March 31, 2025, selling, general and administrative expenses from discontinued operations related to Online Ride-Hailing Platform Services, which amounted to $166,937 primarily consisted of (1) $64,859 in salary and employee benefits; (2) $37,746 in depreciation of office equipment and amortization of intangible assets; (3) $32,187 in entertainment, advertising and promotion; and (4) other miscellaneous expenses.
Previous wording
For the year ended March 31, 2025, XXTX had other income, net of $33,214, which primarily due to the miscellaneous other income in its daily operations.
Current wording
For the year ended March 31, 2025, our former subsidiaries in Sichuan and XXTX had other expense, net of $65,030 and other income, net of $33,214, respectively, which was primarily due to the miscellaneous income and expense in the daily operations.
Previous wording
Interest expense from discontinued operations was resulted from the borrowings of XXTX from a financial institution for its working capital turnover.
Current wording
Interest expense from discontinued operations for the year ended March 31, 2025 was resulted from the borrowings of XXTX from a financial institution for its working capital turnover.
Previous wording
Interest expense on finance leases for the years ended March 31, 2025 and 2024 was $15,145 and $29,088, respectively, representing the interest expense accrued under financing leases for the leased automobiles Corenel leased from a third-party company, and the leased automobiles rendered to us for sublease or sale by the online ride-hailing drivers who exited the ride-hailing business.
Current wording
Interest expense on finance leases from discontinued operations for the year ended March 31, 2025 represented the interest expense accrued under finance leases for the leased automobiles Corenel leased from a third-party company, and the leased automobiles rendered to us for sublease or sale by the online ride-hailing drivers who exited the ride-hailing business.
Previous wording
As a result of the foregoing, the net loss from discontinued operations for the year ended March 31, 2025 was $213,647. While the net loss from discontinued operations for the year ended March 31, 2024 was $380,008.
Current wording
As a result of the foregoing, the net losses from discontinued operations for the years ended March 31, 2026 and 2025 was $102,603 and $1,773,971, respectively.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Prior to December 31, 2025, we provided automobile transaction and related services in Sichuan Province of China through our former majority owned subsidiary, Chengdu Jiekai Yunli Technology Co., Ltd., a PRC limited liability company and its subsidiary (“Jiekai”) and our former wholly owned subsidiary, Chengdu Corenel Technology Co., Ltd. a PRC limited liability company (“Corenel”). As discussed below under “– Automobile Transactions and Related Services”, we ceased our automobile transactions and related services in Sichuan Province of China on December 31 2025.
Current report — wording carried from elsewhere
The following table sets forth the breakdown of revenues by revenue source for years ended March 31, 2026 and 2025:
Current report — wording carried from elsewhere
Revenue from our automobile transaction and related services (discontinued operations) mainly includes operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, default revenue and other services fees, which accounted for approximately 75.1%, 16.6%, 4.8%, 2.2% and 1.3%, respectively, of the total revenue from automobile transaction and related services from discontinued operations during the year ended March 31, 2026. Meanwhile, operating lease revenues from automobile rentals, service fees from NEVs leasing, monthly services commissions, default revenue and other services fees, which accounted for approximately 74.7%,12.4%, 8.0%, 4.8% and 0.1%, respectively, of the total revenue from automobile transaction and related services from discontinued operations during the year ended March 31, 2025.
Current report — wording carried from elsewhere
Operating lease revenues from automobile rentals
Current report — wording carried from elsewhere
Our former subsidiaries in Sichuan generated revenues from leasing sub-leasing automobiles leased from third-parties and related parties or rendered by online ride-hailing drivers with their authorization for a lease term of no more than twelve months. Our former subsidiaries in Sichuan leased over 410 automobiles with an average monthly rental income of approximately $392 per automobile, resulting in a rental income of $1,011,119, including rental income of $79,203 from two related parties, for the year ended March 31, 2026. Our former subsidiaries in Sichuan leased approximately 460 automobiles with an average monthly rental income of approximately $373 per automobile, resulting in a rental income of $1,115,880, including rental income of $46,461 from Jinkailong and other related parties for the year ended March 31, 2025.
Current report — wording carried from elsewhere
Our former subsidiaries in Sichuan generated revenues of $223,775 and $184,625 from leasing NEVs by charging leases service fees during the years ended March 31, 2026 and 2025, respectively. The amount of services fees for NEVs leasing were based on our timely product solutions which adjusted in accordance with different market conditions.
Current report — wording carried from elsewhere
Our former subsidiaries in Sichuan generate other revenues from other miscellaneous service fees charged to our customers during the years ended March 31, 2026 and 2025, which mainly include the maintenance fees charged to our customers pursuant to certain new product solutions.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
We started generating revenue from Automobile Transaction and Related Services from our acquisition of Hunan Ruixi on November 22, 2018. Revenue for the year ended March 31, 2025 decreased by $930,959, or approximately 21.5%, as compared with the year ended March 31, 2024. The decrease was mainly due to the decreased number of automobiles for operating lease.
Previous report — wording carried elsewhere
During the year ended March 31, 2024, approximately 4.9 million rides with gross fare of approximately $15.1 million were completed through our Xixingtianxia platform and an average of over 5,000 Active Drivers each month. XXTX earned online ride-hailing platform service fees of $2,494,397, after netting off approximately $0.3 million incentives paid to Active Drivers.
Previous report — wording carried elsewhere
It primarily consisted of (1) $425,623 in salary and employee benefits; (2) $399,385 in entertainment, advertising and promotion; (3) $100,342 in depreciation of office equipment and amortization of intangible assets; and (4) other miscellaneous expenses in the year ended March 31, 2024.