On November 3, Kaixin Auto Holdings, a prominent new energy vehicle manufacturer and a leading platform for premium imported and used cars in China, unveiled its unaudited financial results for the six-month period concluding on June 30, 2023. The report showed a total net revenue of US$18.9 million, signifying a 43% decrease compared to the same period in 2022, primarily attributed to a decline in used-car sales. Following the announcement the stock of Kaixin Auto Holdings is currently facing a significant decline.
At the time of this publication, Kaixin Auto Holdings stock (KXIN) has witnessed a decline.
Kaixin Auto Holdings
Current Price: $2.30
Change : -1.21
Change (%): (-34.51%)
Volume: 355.0K
Source: Tomorrow Events Market Data
Kaixin Auto Holdings – First Half of 2023 Unaudited Financial Results
Cost of revenues for the first half of 2023 was reported at US$18.7 million, a decrease from the US$33.1 million recorded in the corresponding period of the previous year, aligning with the decline in revenue. Gross profit remained steady at US$0.2 million, in comparison to the same period in 2022.
Operating expenses notably decreased to US$4.2 million, a significant drop from the US$33.0 million recorded in the first half of 2022, primarily due to a substantial share-based compensation expense recognized in the prior year.
Selling and marketing expenses were reported at US$257 thousand, a decrease from US$334 thousand in the first half of 2022, while general and administrative expenses saw a notable reduction to US$4.0 million, compared to the US$32.7 million recorded in the same period last year. This decrease was largely attributed to the share-based compensation expense recognized from the vesting of employee stock incentive awards in the first half of 2022.
The loss from operations was reported at US$4.1 million, representing an improvement from the US$32.8 million loss reported in the first half of 2022, mainly due to the significant decrease in operating expenses during the same period last year.
Net loss attributable to the company showed a substantial improvement, amounting to US$4.5 million, compared to the net loss of US$70.6 million recorded in the first half of 2022.
Adjusted loss from operations (non-GAAP) for the first half of 2023 was US$2.8 million, slightly lower than the US$2.9 million reported in the corresponding period of 2022. Additionally, adjusted net loss (non-GAAP) for the same period was US$3.3 million, compared to the US$3.8 million reported in the first half of 2022.
In an announcement yesterday, Kaixin Auto Holdings, disclosed that Mr. Lin Cong has resigned from the Company’s Board of Directors, effective as of October 30, 2023. The departure, attributed to personal reasons, was clarified by the company, asserting that it did not stem from any disputes regarding the company’s operations, policies, or practices.
In a subsequent development, on August 22, 2023, Kaixin Auto Holdings finalized the acquisition of 100% of the equity interest in Morning Star Auto Inc. (“Morning Star”), in exchange for 100 million ordinary shares (equivalent to 6,666,667 Class A ordinary shares after a share consolidation at a 1-for-15 ratio, effective on September 14, 2023) of Kaixin. This transaction solidifies Morning Star as a wholly-owned subsidiary of Kaixin, marking the company’s official foray into the realm of new energy vehicle manufacturing.
