BEIJING - Kaixin Auto Holdings (NASDAQ:KXIN), a prominent new energy vehicle manufacturer in China, has entered into a significant export agreement with Myanmar New Power Motor Co., Ltd. for the delivery of 1,000 new energy vehicles in Semi Knocked Down (SKD) mode. The signing ceremony, which included top executives from both companies, set the stage for the imminent dispatch of the first batch of 100 vehicles.
This deal represents a strategic advancement for Kaixin's proprietary auto import and export platform, to foster industrial clusters in overseas markets. The collaboration is seen as a step towards enhancing the automotive trade between China and Myanmar, leveraging the favorable business climates and policies surrounding new energy vehicles in both nations.
Mr. Wu Liang, Vice President of Kaixin, highlighted the importance of the partnership in creating a resource linkage effect that will benefit both domestic and international markets. The company plans to continue expanding its cooperation with overseas automotive industry clusters.
The agreement with Myanmar New Power Motor is just the beginning of what both parties anticipate to be a fruitful relationship. Mr. Hao Wang, Chairman of Myanmar New Power Motor, conveyed his enthusiasm for the joint venture, which aims to cater to the automotive needs of Myanmar's population of over 50 million.
China's emergence as the world's largest automobile exporter in 2023 underscores the Chinese auto industry's objective to invigorate international new energy vehicle markets and offer superior automotive products to global consumers.
Kaixin Auto Holdings is known for its new energy vehicle manufacturing capabilities, including research and development, production, and marketing. The company produces a variety of electric passenger and logistics vehicle models.
This announcement is based on a press release statement.
InvestingPro Insights
Kaixin Auto Holdings (NASDAQ:KXIN) has recently made headlines with their new export deal, yet an examination of their financial health through InvestingPro data reveals a mixed picture. The company is currently trading at a low Price / Book multiple of 0.32 as of the last twelve months ending Q2 2023, which might attract investors looking for potentially undervalued stocks. However, the financial metrics also show a significant decline in revenue, with a -76.01% change over the last twelve months as of Q2 2023, and a concerning gross profit margin of -0.99% in the same period.
InvestingPro Tips for KXIN suggest that investors should be cautious due to the company's rapid cash burn and high price volatility. Additionally, the stock has experienced a substantial price decline over various periods, with a -96.84% one-year price total return as of this year. These factors indicate that while the recent deal may provide some positive prospects for Kaixin, the company's overall financial stability remains uncertain.
Investors interested in deeper analysis may find additional InvestingPro Tips for KXIN, which can provide further insights into the company's financial position and market potential. Currently, 14 more InvestingPro Tips are available, offering a comprehensive look at Kaixin's financial health and market performance. For those considering an investment in Kaixin or seeking to understand the implications of their latest business deal, these tips could be invaluable.
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