Kaixin Auto Holdings Announces Binding Acquisition Term

BEIJING, Sept. 26, 2022 (GLOBE NEWSWIRE) — Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) pronounces in the present day that it has signed a binding acquisition time period sheet with Wuxi Morning Star Technology Co., Ltd. (“Morning Star”), who manufactures and operates the POCCO EVs. According to the time period sheet, Kaixin intends to accumulate 100% fairness of Morning Star via new share issuance and makes it an entirely owned subsidiary.

Morning Star acquired 100% fairness of Henan Yujie Time Limited earlier this 12 months, and is actively selling the strategic re-positioning and re-branding of the corporate from “a leading mini multi-purpose electric passenger vehicle producer” to “a pioneer in smart mini new energy vehicles.” The POCCO EV business underneath Morning Star produces the MeiMei and DuoDuo manufacturers of mini electrical passenger automobiles. The complete gross sales quantity has exceeded 40,000 items since its begin of operations in June 2021, which makes POCCO EV among the many prime 6 producers of mini electrical automobiles in China.

Morning Star possesses core applied sciences in electrical automobiles manufacturing and owns 100 patents, together with the battery, motor and management methods, clever interconnection and autonomous driving, battery integration and fast change, battery vary extension, and gas cells. The core administration crew of Morning Star collectively have greater than 20 years of expertise in automobile and new vitality automobile business administration. The president and founder, Mr. Lei Gu, graduated with a doctoral diploma in mechanical engineering from Northwestern University and served as senior expertise knowledgeable with Ford Motors, dean of Cherry Automobile Research Institute, and VP of BAIC Motors, a Fortune 500 firm. Mr. Hao Zeng, CTO, graduated from Johns Hopkins University with a Ph.D. in mechanical engineering, and is an internationally famend automotive NVH knowledgeable, collaborating within the design and improvement of noise/vibration and reliability assessments for greater than ten automobile fashions. Mr. Zeng served as senior NVH knowledgeable with Ford Motors, dean of Changan Automobile Shanghai Research Institute, and affiliate dean of Chery Automobile Research Institute.

Kaixin and Morning Star have reached consensus to advance the M&A transaction in a quick observe. They anticipate to signal the definitive acquisition SPA by finish of October and have the acquisition transaction accomplished by finish of the 12 months. Mr. Mingjun Lin, Chairman and CEO of Kaixin, mentioned: “Kaixin has been in close communications with the management of POCCO EV since last August. The binding acquisition term sheet signed with Morning Star today indicates smooth progress of the pending M&A transaction. There are huge market potentials for mini electric vehicles in China and in the world, and Kaixin is full of confidence in its strategic transformation into the new energy vehicles business!”

About Kaixin Auto Holdings

Kaixin Auto Holdings is likely one of the major dealership networks within the premium used automotive phase and new automotive gross sales in China. Supported by the fast development of China’s used automotive market and leveraging its personal hybrid business mannequin that gives each robust on-line and offline presence, Kaixin is within the course of of reworking from a nationwide dealerships community to one of many vital gamers in China’s electrical automobile market.

Safe Harbor Statement

This announcement could comprise forward-looking statements. These statements are made underneath the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements could be recognized by terminology akin to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and related statements. Among different issues, the business outlook for 2021 and quotations from administration on this announcement, in addition to Kaixin’s strategic and operational plans, comprise forward-looking statements. Kaixin might also make written or oral forward-looking statements in its filings with the U.S. Securities and Exchange Commission (“SEC”), in its annual report back to shareholders, in press releases and different written supplies and in oral statements made by its officers, administrators or workers to 3rd events. Statements that aren’t historic information, together with statements about Kaixin’s beliefs and expectations, are forward-looking statements. Forward-looking statements contain inherent dangers and uncertainties. Quite a lot of elements might trigger precise outcomes to vary materially from these contained in any forward-looking assertion, together with however not restricted to the next: our objectives and methods; our future business improvement, monetary situation and outcomes of operations; our expectations concerning demand for and market acceptance of our providers; our expectations concerning the retention and strengthening of {our relationships} with auto dealerships; our plans to reinforce consumer expertise, infrastructure and repair choices; competitors in our business in China; and related authorities insurance policies and laws regarding our business. Further data concerning these and different dangers is included in our different paperwork filed with the SEC. All data offered on this press launch and within the attachments is as of the date of this press launch, and Kaixin doesn’t undertake any obligation to replace any forward-looking assertion, besides as required underneath relevant legislation.

For extra data, please contact:

Kaixin Auto Holdings
Investor Relations
Email: [email protected]

SOURCE: Kaixin Auto Holdings