Kaixin Auto Holdings Announces Negotiation of Cooperation Partnership by Haitaoche Limited

Rhea-AI Summary

Kaixin Auto Holdings (NASDAQ: KXIN) announced a partnership negotiation with a leading online retail platform in China, targeting the growing e-commerce auto market. The partnership aims to enhance Haitaoche Limited's market position and diversify its revenue through innovative automotive retail. Kaixin previously entered into a share purchase agreement on December 31, 2020, to acquire 100% of Haitaoche's shares, pending Nasdaq approval. The acquisition is expected to finalize by March 31, 2021.

Positive

• Engagement in a partnership negotiation with a major online retail platform to expand into China's e-commerce auto market.
• Acquisition of Haitaoche enhances Kaixin's market reach and diversifies revenue sources.
• Haitaoche is positioning itself in the electric vehicle sector, aligning with market trends.

Negative

• The outcome of the partnership negotiation is uncertain, posing potential risks.
• Forward-looking statements indicate inherent risks that could affect actual results.

BEIJING, March 05, 2021 (GLOBE NEWSWIRE) -- Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced that Haitaoche Limited (“Haitaoche”) is engaged in negotiation of a partnership with a leading online retail platform in China to tap into China’s fast-growing e-commerce auto market. Kaixin entered into a definitive share purchase agreement with the shareholders of Haitaoche on December 31, 2020, pursuant to which Kaixin will acquire 100% of the share capital of Haitaoche from the shareholders of Haitaoche.¹

Through the cooperative partnership under negotiation, Haitaoche aims to gain access to China’s fast-growing e-commerce auto sales market and tap into diversified revenue source and growth opportunities by leveraging its rich resources and expertise in consumer vehicle sales and full range of value-added services. The counterparty in the proposed partnership is one of China’s largest one-stop e-commerce platforms, serving hundreds of millions of active customers with a vast selection of consumer products.

Haitaoche is a China-based online retail platform for imported automobiles. Haitaoche is committed to developing into China's leading innovative automotive retail trading platform. With a track record of good performance and reputation in the field of import car sales, Haitaoche is expanding its sales system into the field of electric vehicles.

1. Details of the definitive share purchase agreement were disclosed by Kaixin in its 6-K filing on 1/06/2021. Subject to the approval by Nasdaq and other closing conditions, the Company anticipates that the acquisition of Haitaoche share capital will close on or prior to March 31, 2021.
   

Safe Harbor Statement
This announcement contains 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. Kaixin may also make written or oral forward-looking statements in its filings with the 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:
Investor Relations
Kaixin Auto Holdings
Email: ir@kaixin.com

FAQ

What is the latest news about Kaixin Auto (KXIN) and its partnership negotiations?

Kaixin Auto is negotiating a partnership with a leading online retail platform in China to enhance its presence in the e-commerce auto market.

What is Haitaoche's role in Kaixin's recent press release?

Haitaoche, being acquired by Kaixin, is seeking a partnership to diversify its revenue and expand its market in China's e-commerce auto sector.

When is Kaixin Auto expected to finalize the acquisition of Haitaoche?

Kaixin Auto anticipates completing the acquisition of Haitaoche by March 31, 2021, subject to Nasdaq approval.