Kaixin Auto Holdings Announces Initiation of Legal Proceedings
August 26 2020 - 5:00PM
Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN)
today announced that it had recently initiated legal proceedings
against non-controlling shareholders of three of its dealerships
due to disputes over operating issues. These three dealerships
accounted for a majority of Kaixin’s revenues in 2019.
In addition, the COVID-19 pandemic has a material adverse impact
on Kaixin’s used-car dealership business and the Company has
experienced a significant loss of revenues.
To resolve these serious challenges to its operations, Kaixin
has been reexamining the business model and has decided to put a
halt to its used-car dealership business operations. As a result,
Kaixin expects that its revenues in the second quarter in 2020 will
be significantly lower than the revenues in the prior periods and
it may not have meaningful revenues starting from the third quarter
of 2020.
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:
Kaixin Auto Holdings
Randall Xu Tel: +86 (10) 8448-1818 Email:
randall.xu@renren-inc.com
SOURCE: Kaixin Auto Holdings
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