Kaixin Auto Holdings Announces Entering into New Energy Vehicle Business

Rhea-AI Summary

Kaixin Auto Holdings (NASDAQ: KXIN) has announced the establishment of a new energy vehicle (EV) business unit to enhance its capabilities in EV research, development, production, and marketing. This strategic decision aligns with the Chinese government’s support for EV growth and the increasing consumer acceptance of electric vehicles. Kaixin is also exploring mergers and acquisitions with various EV manufacturers and aims to position itself alongside established players like Li Auto, Nio, and Xpeng in the EV sector.

Positive

• Establishment of new energy vehicle (EV) business unit.
• Alignment with government support for the EV sector.
• Plans for mergers and acquisitions with EV manufacturers.

Negative

• None.

BEIJING, Aug. 06, 2021 (GLOBE NEWSWIRE) -- Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced that the Company has decided to establish a new energy vehicle (EV) business unit, which will quickly build up EV R&D, production and marketing teams. The corporate strategic move has been made in the context of the Chinese government’s steady support for accelerated development of EVs and the rapid growth of EV market in China. With Chinese consumers’ ever increasing recognition of EV, new energy vehicles are expected to become the mainstream consumer model in the auto industry.

The Company has been engaged in negotiations of mergers and acquisitions with a number of EV manufacturers, and the Company will announce the progress of major business transactions, if any, in a timely manner.

As a NASDAQ listed company, Kaixin is committed to become another player in the EV business following Li Auto, Nio, and Xpeng.

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 has transformed from a tech-enabled financing platform into a nationwide dealer network that combines its own and affiliated dealers as well as value-added services.

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 2021 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; the expected growth of the social networking site market in China; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with used 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 Kaixin Auto Holdings' new EV business unit about?

Kaixin Auto Holdings has created a new energy vehicle (EV) business unit focusing on R&D, production, and marketing to capitalize on the growing EV market in China.

How does the establishment of the EV unit affect KXIN's stock?

The establishment of the EV unit may positively affect KXIN's stock by positioning the company as a competitor in the rapidly growing EV market.

What are Kaixin's plans regarding mergers and acquisitions?

Kaixin is in negotiations for mergers and acquisitions with various EV manufacturers and will announce any significant progress in due course.

How does Kaixin Auto Holdings plan to compete in the EV market?

Kaixin plans to compete in the EV market by leveraging government support, increasing consumer recognition of EVs, and forming strategic partnerships with other manufacturers.