On August 4, Kaixin Auto announced that it had obtained targeted investment intentions totaling $700 million from several investment institutions, and this investment will take effect at the same time as Kaixin Auto’s intended acquisition of a new energy manufacturing company.
Kaixin Auto, formerly known as Renren Auto, is a domestic used car dealer group under the Renren Network, a Chinese social networking service similar to Facebook. In 2015, Kaixin Auto entered the used car industry with its auto finance business before beginning its own retail business for the used car market and used car trading services, which it began in 2017. As of May 2019, the company has been listed on the Nasdaq making it the second Chinese used car company to successfully list after Uxin.
On August 6, 2021, Kaixin Auto set up a new energy vehicle department and several teams dedicated to R&D, production and marketing. According to the company, it has been actively looking for other new energy manufacturing companies as targets of acquisition, and already has a preliminary target. Meanwhile, Kaixin Auto has actively negotiated investment matters with several funds, and this investment intention of $700 million will be specially used for business operations after the acquisition of a new energy manufacturing company.
Lin Mingjun, Chairman and CEO of Kaixin Auto, said: “A large amount of capital would be necessary to support business operations of the acquired EV manufacturer. The securing of the $700 million investment intentions helps strengthen our position to accelerate the acquisition process. We expect to announce the target company in August.”
In July this year, Kaixin Auto released a new line of new energy business-used vehicles called Tecroll, and jointly held the first delivery ceremony of Tecroll electric logistics vehicles with Beijing Bujia Automobile. The company officially started delivery of 5,000 electric logistics vehicles purchased by Bujia Automobile.