Why is Kaixin Auto Holdings (KXIN) stock Gaining today?

Related Topics


Kaixin Auto Holdings (KXIN) announced the cooperation agreement between Haitaoche Limited, an online retailer platform for imported vehicles,  and Jingdong Century Trade Limited, China’s largest retailer platform,  after which KXIN stock price pushed by 8.93% to reach $3.05 a share as of this writing. It seems that today’s announcement has made the stock green as it went down by 3.78% at the previous closing. Let’s try to figure out more from current happenings.

Cooperation agreement between Haitaoche and Jingdong:

According to the cooperation agreement, Haitaoche would get access to the eCommerce auto sales market which is growing at a rapid pace. Haitaoche will expand its business in terms of both revenue and growth via leveraging its resources and expertise in the sales of consumer vehicles as well as providing the whole range of value-added services. Both companies are optimistic to generate  RMB 2 billion revenue through Haitaoche’s consumer vehicle sale on the Jingdong platform. This means that the volume of the sales will increase at least 50 %annually during the next three years. Total sales are expected to be RMB 9.5 billion under this cooperation agreement.

Back on December 31, 2020, Kaixin stock signed the definitive purchase agreement with Haitaoche Limited according to which KXIN stock will obtain 100% Haitaoche’s share capital from Haitaoche’s shareholders.

Recent Event of Kaixin stock:

Back in the previous week on April 06, 2021, KXIN stock announced the definitive securities purchase agreement with Renren Inc according to which, purchaser put the investment of $6.0 million in the newly designated convertible preferred shares of the company. The preferred shares would be converted to the ordinary shares at the conversion price of $3.00 per share subjective to the customary adjustments in connection with the Purchase agreement.


KXIN stock happened to be green after facing the bearish sentiment at the previous trading session as investors are responding to the cooperation agreement news announced by the Kaixin stock. Investors having long-term prospects usually don’t consider much the lows and highs of the stock rather they eye on the company’s fundamentals, balance sheet, and future developments. Hence it is better to analyze the KXIN balance sheet as well as future growth prospects before adding this stock to the portfolio.

Leave a Comment

Your email address will not be published.

Latest Posts