Benzinga | Jan 11, 2021 06:02AM EST

Kaixin Auto Holdings Announces Entry into a Vehicles Supply Contract between Haitaoche Limited and China National Vehicles Import & Export Company

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.

2 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