HANGZHOU, China - Kaixin Holdings (NASDAQ:KXIN), a Chinese new energy vehicle manufacturer, has regained compliance with the Nasdaq's minimum bid price requirement, according to a notification from the Nasdaq Hearing Panel received on November 12, 2024. The compliance aligns with the Nasdaq Listing Rule 5550(a)(2), following the panel's decision from September 12, 2024.
The company will now enter a one-year mandatory monitoring period as per Nasdaq Listing Rule 5815(d)(4)(B). During this time, if Kaixin fails to meet the bid price requirement again, it will not be allowed to submit a compliance plan for that specific deficiency. Instead, Nasdaq Staff may issue a delisting determination, after which Kaixin could request a hearing with the original panel or a new one if the former is unavailable.
Kaixin specializes in the production of electric passenger and logistics vehicles and is known for its integrated online and offline market presence and diverse business operations. The company emphasizes its commitment to innovation and sustainability, aiming to contribute to China's carbon neutrality goals.
This press release statement also includes forward-looking statements under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements reflect Kaixin's current expectations and projections about future events, which are subject to risks and uncertainties that could cause actual results to differ materially. The company cautions that these forward-looking statements are not guarantees of future performance and that readers should not place undue reliance on them.
Investors and those following the company's progress should note that Kaixin's future business development, market acceptance of its vehicles, and industry competition are factors that could impact its financial condition and results of operations. The company's continued compliance with Nasdaq's listing rules will be closely monitored over the coming year.
In other recent news, Kaixin Holdings, a Chinese new energy vehicle manufacturer, has announced a 1-for-60 share consolidation. This move will result in the automatic consolidation of every sixty shares of the company's ordinary shares into one ordinary share. Concurrently, the company has been granted an extension by Nasdaq to meet its minimum bid price requirement and now has until December 13, 2024, to comply. To meet these conditions, Kaixin plans to seek shareholder approval for a reverse stock split at an Extraordinary General Meeting.
In addition, Kaixin has filed an amended 6-K/A with the Securities and Exchange Commission, modifying proposals for their upcoming Extraordinary General Meeting. The key changes include an increase in the reverse stock split ratio from 1:50 to 1:60 and amendments to the authorized share capital on a post-split basis. Despite facing potential delisting from the Nasdaq Capital Market due to non-compliance with minimum bid price requirements, Kaixin has requested an appeal hearing with a Nasdaq Hearings Panel.
These are among the recent developments concerning Kaixin Holdings, which is known for its production of electric passenger and logistics vehicle models and is focusing on expanding its international market presence.
InvestingPro Insights
While Kaixin Auto Holdings has regained compliance with Nasdaq's minimum bid price requirement, recent InvestingPro data paints a challenging picture for the company. As of the last twelve months ending Q2 2024, Kaixin's revenue stood at $12.68 million, with a significant revenue decline of 81.46% year-over-year. This steep drop in revenue aligns with the company's current market capitalization of just $2.88 million, reflecting investor concerns about its financial health.
InvestingPro Tips highlight that Kaixin is "trading at a low Price / Book multiple" of 0.06, which could indicate that the stock is undervalued. However, this must be weighed against another tip stating that the company is "quickly burning through cash," which may explain the low valuation.
The company's financial struggles are further evidenced by its negative gross profit margin of -182.25% and operating income margin of -362.27% for the same period. These figures underscore the challenges Kaixin faces in its operations and profitability, which investors should consider alongside the company's recent Nasdaq compliance achievement.
For those seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Kaixin Auto Holdings, providing deeper insights into the company's financial position and market performance.
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