Kaixin Auto rose about 15 percent in pre-market trading Thursday.
Kaixin Auto Holdings, a US-listed Chinese used car dealership, announced today that it has received a new order after announcing last week that it had received more than $500 million in new energy truck orders.
Kaixin Auto said it entered into a strategic partnership agreement with Beijing Shencheng Biotechnology Group Limited, which has agreed to purchase 10,000 customized electric trucks over the next five years.
The total value of the orders is about $250 million, according to an announcement on Kaixin Auto's website.
Shencheng is a leading biotech company engaged in waste sorting and recycling in China. It plans to partner with local governments to implement integrated waste treatment and resource reuse projects throughout China, according to the announcement.
Shencheng expects to purchase a large number of customized new energy trucks for its environmental protection and resource recovery programs over the next five years, the announcement said.
"This is another major breakthrough of Kaixin in the new energy vehicle business. We will accelerate investment and product development and strive to release prototypes in the first half of 2022 and to achieve mass production and delivery as soon as possible," said Lin Mingjun, Chairman and CEO of Kaixin.
Kaixin Auto was up about 15 percent in pre-market trading Thursday after the deal was announced.
On August 6, Kaixin said it had decided to set up a new energy vehicle (NEV) business unit that will include NEV development, production and marketing teams.
The move was based on steady support from the Chinese government for the rapid growth of the EV industry and the rapid development of China's EV sector, the company said, adding that it was then in talks with several EV makers about mergers and acquisitions.
On August 26, Kaixin said it entered into a binding investment agreement with local EV maker Henan Yujie Times Automobile Co Ltd to acquire 100 percent of the latter through the issuance of new shares.
On December 1, Kaixin unveiled its NEV strategic plan, saying it will rapidly expand its NEV team.
On December 16, Kaixin Auto announced that it had entered into a cooperation agreement with Beijing Bujia International Logistics Limited, which agreed to order at least 10,000 new energy trucks from Kaixin Auto over the next five years.
The total amount of the intended order is more than $500 million, Kaixin said.
Kaixin Auto says it gets over $500 million in new energy truck orders
