Senmiao Technology announces signing of strategic cooperation agreement with SAIC Affiliate

Senmiao Technology Limited, a financing and servicing company focusing on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, announced that its wholly owned subsidiary Sichuan Senmiao Zecheng Business Consulting Co., Ltd. has signed a strategic cooperation agreement with Global Sharing Chengdu Automobile Leasing Co., Ltd., a wholly owned subsidiary of Global Car Sharing & Rental Co., Ltd. (“Global Car Sharing”). Global Car Sharing is an affiliate of SAIC Motor.

Global Car Sharing specializes in the new energy vehicle (“NEV”) car sharing and rental business. Headquartered in Shanghai, Global Car Sharing was founded in 2016 by SAIC.

Pursuant to the agreement, Senmiao and Global Sharing Chengdu will initiate a strategic cooperation that promotes an NEV online ride-hailing business, including but not limited to the rental and purchase of vehicles for online ride-hailing services. Global Sharing Chengdu will support Senmiao with ancillary financing services and regulatory consultation for Senmiao’s online ride-hailing operations in Chengdu. Senmiao agrees to prioritize selection of vehicles as specified by Global Sharing Chengdu for its online ride-hailing services business.

The two parties are expected to initiate a cooperation in vehicle rental, buy-to-lease, and other financing and leasing options, under which more than 1,000 vehicles could be delivered to Senmiao by the end of 2023, if the cooperation proceeds smoothly and market conditions remain stable. These purchasing activities will be specified in detailed contracts in the future. In the event the delivery of the agreed upon number of vehicles is completed, Senmiao may receive additional benefits as Global Sharing Chengdu’s business partner, which may include Global Sharing Chengdu becoming a premium source of vehicles, a more favorable rent deposit requirement and/or introduction of a credit line to the Company.

Xi Wen, Senmiao’s Chairman and Chief Executive Officer stated, “We are pleased to have signed this strategic cooperation agreement with Global Sharing Chengdu, a company that is backed by the reputation and resources of SAIC. Global Car Sharing shares our mission of promoting a national ride-sharing market, and we are delighted to become partners in our key city of Chengdu, exploring ways in which both businesses can expand their growth. We believe this cooperation represents an exciting opportunity for Senmiao to increase our market share and brand recognition in Chengdu, and we look forward to potential future opportunities this relationship may present down the road.”