Kaixin Auto Holdings Announces Entry into a Vehicles Supply Contract between Haitaoche Limited and China National Vehicles Im...
January 11 2021 - 6:00AM
Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN)
today announced that Haitaoche Limited (“Haitaoche”) has entered,
through one of its subsidiaries, into a five-year vehicles supply
contract (the “Vehicles Supply Contract”) with China National
Vehicles Imp & Exp Co., Ltd. (“CVC”) on January 11, 2021.
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
According to the terms of the Vehicles Supply Contract, CVC will
meet the demands of Haitaoche and supply RMB2.0 billion
(approximately US$300 million) worth of consumer vehicles for
resale through Haitaoche’s networks in 2021, and the volume of
supply will then increase by at least 20 percent annually during a
five-year period, with a total contract amount of RMB 14.9 billion
(approximately US$2.3 billion). The execution of the Vehicles
Supply Contract constitutes the beginning of a strategic
partnership between Haitaoche and CVC.
In addition to CVS, Kaixin and Haitaoche are actively developing
other partnerships to expand its auto supply sources in order to
meet the demands of both the executed sales agreements and
forecasted sales.
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. Having
established good performance record and reputation in the field of
import car sales in the past years, Haitaoche is expanding its
sales system into the field of electric vehicles.
Established in the mid 1980’s, CVC is a leading auto supplier in
China, with rich resources in high quality electric vehicles,
domestic cars, and imported cars at competitive price. It used
to be the only company with the license to engage in imported
vehicles business in China during some time period.
- Details of the definitive share purchase agreement were
disclosed by Kaixin in its 6K filing on 1/06/2021. Subject to the
approval by Nasdaq and other closing conditions, the Company
anticipates that the Acquisition will close by March 31, 2021
Safe Harbor StatementThis
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 RelationsKaixin Auto HoldingsTel: +86
(10) 8448-1818Email: ir@kaixin.com
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