Senmiao Technology is a Nevada-incorporated, Chengdu-headquartered company that for years made its living financing and leasing cars to online ride-hailing drivers in China through a majority-owned subsidiary, Hunan Ruixi, and an equity investee, Jinkailong. The fiscal year ended March 31, 2026 arrived with the company in the middle of dismantling that story and replacing it with a balance-sheet bet. In December 2025 it sold its entire loss-making Sichuan operation for nil consideration, in July 2025 it executed a 1-for-10 reverse stock split to keep the listing alive, and on the very day it filed its fiscal 2026 annual report it also disclosed that its December-quarter financials could no longer be relied upon because warrants had been booked as equity instead of as liabilities. The commercial heart of the old model is now a single Changsha leasing book that shrank to roughly $1.5 million of continuing revenue, down 18.5% from the prior year and barely gross-profitable at a 13.6% margin.
The fiscal 2026 report is not really about that shrinking book. The period's defining move was financial: a November 2025 registered direct offering plus a PIPE raised about $3.5 million, and an April 2026 units placement - one share and four warrants per $1.10 unit, all sold on June 25, 2026 - pulled in roughly $11 million in gross proceeds. That turned a company with $3.6 million of cash and a $3.7 million working-capital deficit at year-end into one sitting on a low-double-digit-millions war chest, and it is that cash, not the lease book, that management has earmarked for an expansion into AI data-center infrastructure. As of the annual report it had appointed a strategic advisor, was evaluating several AI data-center projects, and had signed no definitive agreement.
What changed this period is that the company stopped being a ride-hailing financier and became a cash-backed pivot vehicle with an enormous restore-to-parity share count: 14.56 million shares outstanding against roughly 45 million warrants, 40 million of them from the April units placement alone, with the pre-funded tranche exercisable at effectively nothing. What decides the investment case is whether management deploys that cash into a revenue-generating AI asset before the run rate burns it, or whether the pivot stays a pitch and the stock grinds on dilution and delisting risk. The price today of roughly $1.84 prices the cash at about 1.9 times, with almost nothing credited for the going concern; that is the whole debate in a number.