Benzinga | Aug 26, 2020 05:02PM EDT

Renren Announces Initiation Of Legal Proceedings By Subsidiary Kaixin Against Non-Controlling Shareholders Of Three Of Its Dealerships

BEIJING, China, August 26, 2020 /PRNewswire/ -- Renren Inc. (NYSE:RENN) ("Renren" or the "Company"), which operates a leading premium used auto business in China through its subsidiary Kaixin Auto Holdings (NASDAQ:KXIN) ("Kaixin") as well as several U.S.-based SaaS businesses, today announced that Kaixin had recently initiated legal proceedings against non-controlling shareholders of three of its dealerships due to disputes over operating issues. These three dealerships accounted for a majority of Kaixin's revenues in 2019.

In addition, the COVID-19 pandemic has a material adverse impact on Kaixin's used-car dealership business and Kaixin has experienced a significant loss of revenues.

To resolve these serious challenges to its operations, Kaixin has been reexamining the business model and has decided to put a halt to its used-car dealership business operations. As a result, Kaixin expects that its revenues in the second quarter in 2020 will be significantly lower than the revenues in the prior periods and it may not have meaningful revenues starting from the third quarter of 2020.

Kaixin generated 95.7% of Renren's revenues in 2019.