Kaixin Auto Holdings Announces Commitment of US$20 Million Strategic Investment from Investors

Rhea-AI Summary

Kaixin Auto Holdings (NASDAQ: KXIN) has announced a US$20 million strategic investment from multiple institutions to support its new energy vehicle strategy, with US$2 million already funded. The remaining funds are expected by the end of Q1 2022. This financing will facilitate the development of new energy trucks aimed for mass production and delivery in the latter half of the year. CEO Mingjun Lin emphasized the significant market potential for electric trucks in China, highlighting a shift from fossil fuels to electric vehicles.

Positive

• Secured US$20 million investment, enhancing financial stability.
• First financing round following the launch of a new energy vehicles strategy.
• Investment earmarked for developing new energy trucks for mass production.

Negative

• None.

BEIJING, Jan. 03, 2022 (GLOBE NEWSWIRE) -- Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) announces today that it has secured commitment of US$20 million strategic investment from multiple investment institutions, of which US$2 million has been funded. The remaining is expected to be funded by the end of first quarter of the year. This is the first round of financing after Kaixin announced its new energy vehicles strategy. The financing will be used in the development and design of new energy trucks for mass production and delivery in the second half of the year.

Mr. Mingjun Lin, Chairman and CEO of Kaixin, said: "The truck market is huge in China. It is currently in the critical stage of transition from fossil fuel vehicles to electric vehicles. We have chosen the correct growth path and adopted a practical development model without incurring excessive costs. We see a promising future and appreciate the encouragement and trust of investors in us!"

About Kaixin Auto Holdings

Kaixin Auto Holdings is one of the primary dealership networks in the premium used car segment and new car sales in China. Supported by the rapid growth of China's used car market and leveraging its own hybrid business model that offers both strong online and offline presence, Kaixin is in the process of transforming from a nationwide dealerships network to one of the important players in China’s electric vehicle market.

Safe Harbor Statement

This announcement may contain forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the business outlook for 2022 and quotations from management in this announcement, as well as Kaixin’s strategic and operational plans, contain forward-looking statements. Kaixin may also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission ("SEC"), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Kaixin’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition and results of operations; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with auto dealerships; our plans to enhance user experience, infrastructure and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our other documents filed with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Kaixin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:

Kaixin Auto Holdings
Investor Relations
Email: ir@kaixin.com

SOURCE: Kaixin Auto Holdings

FAQ

What is the amount of investment secured by Kaixin Auto Holdings?

Kaixin Auto Holdings secured a total of US$20 million in investment.

What will the investment be used for?

The investment will be used for the development and design of new energy trucks.

When is Kaixin Auto Holdings planning to deliver new energy trucks?

The new energy trucks are expected to be mass-produced and delivered in the second half of 2022.

What is the current funding status of Kaixin's investment?

US$2 million has been funded, with the remaining amount expected by the end of Q1 2022.

Why is Kaixin Auto Holdings focusing on electric vehicles?

The shift from fossil fuel vehicles to electric vehicles presents a significant market opportunity in China.