BEIJING, China, August 26, 2020 /PRNewswire/
-- Renren Inc. (NYSE: RENN) ("Renren" or the
"Company"), which operates a leading premium used auto business in
China through its subsidiary
Kaixin Auto Holdings (NASDAQ: KXIN) ("Kaixin") as well as several
U.S.-based SaaS businesses, today announced that Kaixin 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 Kaixin 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.
Kaixin generated 95.7% of Renren's revenues in 2019.
About Renren Inc.
Renren Inc. (NYSE: RENN) operates a leading premium used
auto business in China through its
subsidiary Kaixin Auto Holdings (NASDAQ: KXIN) as well as several
US-based SaaS business. Renren's ADSs, each currently
representing forty-five (45) Class A ordinary shares of the
Company, are traded on NYSE under the symbol "RENN".
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. Renren may also
make written or oral forward-looking statements in its filings with
the U.S. Securities and Exchange Commission (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 Renren's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. Further
information regarding these and other risks is included in our
annual report on Form 20-F, the 6-K referred to above and other
documents filed with the SEC. All information provided in this
press release is as of the date of this press release, and Renren
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For more information, please contact:
Investor Relations
Renren Inc.
Tel: (86 10) 8448 1818 ext. 1300
Email: ir@renren-inc.com
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SOURCE Renren Inc.