Kaixin Auto Soars 30% on Narrowed Loss in 2019
Shares in Kaixin Auto Holdings (Nasdaq: KXIN) soared as high as 32% on Wednesday morning after the company submited its delayed 2019 financial results.
The subsidiary of Renren Inc. (NYSE: RENN) said in a statement Tuesday aftermarket that revenue last year reached $334.7 million, down 22% year-over-year. Net income hit $69.1 million, narrowing from $89.5 million in 2018 by 23%.
The used car dealer said its revenue drop in 2019 was due to the macroeconomic headwinds in the country, a reduction of the overall inventory scales and some changes in dealerships, according to the statement.
The dealership network said on Monday that it has received a non-compliance notice from Nasdaq for the delay in filing an annual report on June 2. The company explained it didn't file the annual financial form in time because of additional work in preparation of retroactive adjustments related to a reverse split on April 30.
Passenger auto sales in China retreated in June to 165.4 million units, down 6.2% year-over-year, but up 2.9% higher than the sales in May, according to the China Passenger Car Association on Wednesday.
Some state-owned Chinese automobile manufacturers reported an over 30% year-over-year increase in their auto sales in June.
State-owned Changan Automobile Co., Ltd. said its sales hit 194,400, up 39% year-over-year. Great Wall Motors Company Ltd. also enjoyed a strong June sale, selling 82,036 vehicles with a 30% year-over-year increase. Another state-owned automobile and commercial vehicle manufacturer JAC Motors reported a 30% increase in year-over-year sales of 41,400 units in June.
However, sales of new energy vehicles have fallen severely. The wholesale sales of new energy passenger vehicles in June were 85,600, a year-over-year decrease of 35%, and a month-over-month increase of 20%, according to the China Passenger Car Association.
Shenzhen-headquartered BYD Co Ltd. said on Tuesday that it sold 14,165 new energy vehicles in June, compared with 26,571 in the same period last year, down 47%. For the cumulative sales of this year, the company saw a larger decline of 58%, hitting 60,677 units, compared with 145,653 in the same period last year.
"Although the new energy vehicle market in June was still a negative growth of 35% year-over-year, the monthly average growth rate of new energy vehicles in the second half of the year from July is expected to maintain positive growth," the China Passenger Car Association said in the report.
Shares in Kaixin Auto jumped on Wednesday morning then cooled down, trading at $1 per share, up 7%.