Senmiao Technology Ltd 8-K

What Happened

• Senmiao Technology Ltd filed an 8‑K on January 7, 2026 reporting the disposition of two wholly owned Chengdu subsidiaries—Sichuan Senmiao Yicheng Asset Management Co., Ltd. (“Yicheng”) and Sichuan Senmiao Zecheng Business Consulting Co., Ltd. (“Zecheng”)—pursuant to an Acquisition Agreement dated December 31, 2025 with Hu Mao Sheng Tang Holdings Limited (HMST). The Company sold 100% of the equity interests in both entities for no additional consideration.
• The two subsidiaries had accumulated losses of approximately $11 million as of September 30, 2025 and had no operations during the past fiscal year. The Board approved the sale after obtaining a third‑party valuation, which supported selling the units for no consideration.
• The filing also reports that Chief Financial Officer and Treasurer Xiaoyuan Zhang resigned (not due to any disagreement with the company). The Board is searching for a replacement and said it will act to comply with Nasdaq and other rules.

Key Details

• Disposition date / agreement: Acquisition Agreement signed December 31, 2025 with Hu Mao Sheng Tang Holdings Limited.
• Consideration: 100% equity interests transferred for no additional consideration.
• Losses: Yicheng and Zecheng had combined accumulated losses of ~$11 million as of Sept. 30, 2025.
• Officer change: CFO/Treasurer Xiaoyuan Zhang resigned; company is conducting a search for a successor.

Why It Matters

• The sale transfers both assets and liabilities of the two lossmaking subsidiaries to the purchaser, which may remove their future operating losses from Senmiao’s consolidated results—but the company received no cash proceeds, so there is no immediate cash benefit.
• Because the entities had no operations during the last fiscal year, the transaction primarily affects the company’s reported structure and potential future loss exposure rather than near‑term revenue.
• The CFO resignation is material for financial reporting and compliance; investors should watch for an announced replacement and any related disclosures (timing, qualifications) to assess continuity in financial management.

Keywords: disposition, acquisition agreement, subsidiaries sale, CFO resignation, pro forma, Nasdaq compliance.