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Highlights
- Bujia International Logistics Limited has agreed to order at least 10,000 energy new trucks from Kaixin.
- The agreement deal values around US$500 million.
- Kaixin stock was up over 36% on Thursday, December 16.
The shares of Kaixin Auto Holdings (NASDAQ:KXIN) gained traction in the market on Friday, December 17, after the company announced that it entered into a strategic partnership agreement with Beijing Bujia International Logistics Limited (Bujia). In the strategic agreement, Beijing Bujia agreed to order a minimum of 10,000 new energy trucks from Kaixin through the coming five years. Meanwhile, the value of the intended order agreement is over US$500 million.
Bujia is one of the major new automobile retail logistics and service terminals platforms in China. Through the next five years, the firm aims to accomplish at least 300 automotive logistics transfer warehouses and about 1,000 automotive terminal delivery centers.
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In addition, Bujia intends to integrate a fleet of over 60,000 delivery trucks participating in its logistics business segment. Notably, at least 30% of the total fleet of delivery trucks would be new energy trucks.
The chairman and chief executive officer of Kaixin, Mr. Mingjun Lin, said that the Chinese market has substantial potential for new energy commercial vehicles. He added that Bujia has significant resources in the logistics operators networks.
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Kaixin is a holding firm that engages in selling used vehicles and offers various other related products and solutions in the sector. In addition, it also provides third-party financing and value-added services like extended warranties, insurance, and other related services to its customers. The firm is based in Beijing, China.
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Stock Performance & highlights of Kaixin Auto Holdings (NASDAQ:KXIN)
The KXIN was priced at US$1.59 at 7:36 am ET on December 17, down by 5.92% from its closing price of December 16. Meanwhile, on Thursday, December 16, the shares of KXIN closed at US$1.69, up 36.29% from its previous close.
The firm has a market cap of US$224.44 million. The KXIN stock saw the highest price of US$5.49 and lowest price of U$1.15 in the last 52 weeks. Its trading volume on December 16 was 89,104,310, representing an increase of over 300 times than its trading volume average for the last five days. The stock value of Kaixin tumbled 55.29% YTD.
For the year ended on December 31, 2020, the firm reported a revenue of US$33.16 million, as compared to US$334.69 million in the previous year. For the year, its net loss came in at US$5.32 million, against a loss of US$89.53 million for the year ended on December 31, 2019.
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Bottom line:
Kaixin has started a new energy vehicle business segment for EV manufacturing and selling purposes. In addition, it unveiled its strategic plan for new energy vehicles at the start of December. Notably, it has set a goal for production and sales of 50,000 vehicles from 2022 through 2025.
