Senmiao Technology Limited [NASDAQ: AIHS] was a big gainer in Friday’s trading session. The stock closed the day at $1.07 representing gains of 151.76%. This followed the company’s impressive unaudited results for Q2 of the fiscal year 2020. The company announced that revenues had increased to $5,921,166. That is an 8,180% increase compared to a similar period last year, when revenues stood at $71,508. The company also announced that gross profits had risen to $1,211,982 up from $71,508 in a similar quarter last year. Percentage-wise, this is a 1,595% increase in gross profits in the year. Earnings per share also increased to $0.04, as compared to a loss of $0.03 in Q2 of last year.
The company attributes this growth to automobile services. In the quarter, the company’s auto business generated $5,885, 287. This represents 99.4% of the total revenues that, it generated in that quarter. This was the second quarter in a row that the company’s auto business had shown significant growth. Revenues from the company’s other businesses declined, with online lending services revenues declining by $35,635. This followed a restructuring of the company’s operations for more sustainable growth in the future.
According to the company chairman and CEO, Xi Wen, Senmiao continues to capitalize on its automobile transaction business. He also stated that the company continues to restructure its services to streamline its revenue sources, even as it brings its peer-to-peer lending business to a close.
Looking at the charts, AIHS opened Friday trading with a gap up to record huge gains, and on high volumes. In the day, 55.54 million shares of this stock were trade. In pre-market trading, AIHS has recorded no activity. The key level to watch in the day will be Friday’s high of $1.66. Opening above this level could be an indicator of a potential continuation of Friday’s trend.
About Senmiao Technology Limited
Senmiao Technology Limited is an automobile transaction company. The company also has an online lending business that it is winding down. It has its headquarters in Chengdu, China.