Benzinga | Oct 26, 2021 09:29AM EDT

Senmiao Technology Announces Signing Of Cooperation Agreement With Sichuan Chengfeng Intelligent Transportation

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 new cooperation agreement (the "Agreement") with Sichuan Chengfeng Intelligent Transportation Co., Ltd. ("Chengfeng"), a wholly-owned subsidiary of Neijiang Chengfeng Investment Co., Ltd. ("Chengfeng Investment"). Chengfeng Investment is a state-owned company focused on customized passenger transportation, taxis, online ride-hailing, and smart technology sectors.

Chengfeng is a provider of construction and maintenance services for real-time GPS monitoring systems for mobile and fixed targets in Neijiang, Sichuan Province. Since 2002, Chengfeng has established cooperation relationships with various well-known companies such as China Telecom and China Mobile.

According to the terms of the Agreement, Senmiao will be responsible for providing operational support services for customized passenger transportation, intercity carpooling, city express, SAAS express and technology systems involved in digital transformation, as well as providing the development, introduction and technical support for Chengfeng's taxi brand. Chengfeng will provide certifications and resources for customized passenger transportation, intercity carpooling, online ride-hailing business licenses, and will also manage communications with local government officials.

The two parties initiated their first cooperation in September 2021 pursuant to a contract signed by Senmiao and Neijiang Di'An Automobile Service Ltd ("Di'An"), a subsidiary of Chengfeng. In this cooperation, Senmiao authorizes Di'An to act as an agent for online ride-hailing operation in the city of Neijiang. Di'An will recruit and provide management of drivers and vehicles suitable for online ride-hailing services, as well as take the lead on communication with local authorities.

Xi Wen, Chairman, Chief Executive Officer and President of Senmiao, stated, "We are pleased to announce this close partnership with Chengfeng, an innovative company with significant expertise in Neijiang's online ride-hailing market that possesses strong local relationships. With this cooperation with Chengfeng, Senmiao expects to accelerate the growth of its online ride-hailing business in Neijiang while exploring potential opportunities that would allow for the expansion of our footprint across Sichuan to promote both Senmiao's and Chengfeng's interests in technology systems involving digital transformation."