Senmiao Technology Announces Cooperation (AIHS) with Hefei Cheyun to Launch Ride-Hailing Business in Hefei, China

April 15, 2021 9:33 AM EDT

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Senmiao Technology Limited ("Senmiao") (Nasdaq: AIHS), a financing and servicing company focused on the online ride-hailing industry in China as well as an operator of its own online ride-hailing platform, today announced the signing of a joint operation agreement with Hefei Cheyun Information Technology Co., Ltd. ("Hefei Cheyun"), an affiliate of Taoyun Capital, which has obtained several licenses issued by municipal administrative departments to operate its online ride-hailing business (the "Licenses") in various cities across China. This agreement is an extension of the previously announced strategic relationship with Taoyun Capital. Hefei Cheyun's parent company operates Yidao, a well-known online ride-hailing platform in China ( Senmiao will partner with Hefei Cheyun to launch its ride-hailing business in Hefei, China in the near future.

By partnering with Hefei Cheyun, Senmiao anticipates utilizing the Licenses of Hefei Cheyun to accelerate the expansion of its online ride-hailing business into new cities in China while bringing increasing order flow to Hefei Cheyun. For the use of the Licenses in Hefei, Senmiao will pay Hefei Cheyun a monthly fee based on the total order flow with a minimum payment per month.

Having launched in its strategic core cities of Chengdu and Changsha in late 2020 where it already provides auto financing and leasing services for the ride-hailing market, as well as in Neijiang in January 2021 and in Guangzhou in March 2021, Senmiao made the strategic decision to launch in Hefei, the capital and most populous city of Anhui province in eastern China with a population of approximately 8 million.

Xi Wen, Senmiao's Chairman and Chief Executive Officer, stated, "We are pleased to have entered into this collaboration with Hefei Cheyun and look forward to accelerating the growth of our businesses together. We believe this industry has a great deal of untapped potential given the success and continued demand in cities where we have already launched. Particularly in more densely populated areas, people are beginning to see that ride-hailing is extremely convenient, accessible and affordable given today's technologies. Senmiao is excited to be a part of this revolution in transportation in China and thrilled to have found a valued and experienced partner like Hefei Cheyun."

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