Kaixin Auto Holdings (NASDAQ:KXIN) shares vaulted first thing Thursday morning, on word it has reached a strategic partnership agreement with Beijing Shencheng Biotechnology Group Limited for supplying its new energy trucks.
Under the agreement, Shencheng will purchase 10,000 customized new energy trucks from Kaixin over the next five years. The total value of the deal is $250 million.
"This is another major breakthrough of Kaixin in the new energy vehicle business," said Kaixin CEO Mingjun Lin.
Shencheng is a well-known biotechnology company engaged in waste sorting and recycling in China.
It plans to cooperate with local governments to implement waste disposal and resource reuse integration projects across China.
Shencheng expects to purchase a large number of customized new energy trucks for its environmental protection and resource recycling projects in the next five years.
Kaixin Auto Holdings is one of the primary dealership networks in the premium used car segment and new car sales in China. Supported by the rapid growth of China's used car market and leveraging its own hybrid business model that offers both strong online and offline presence,
Kaixin is in the process of transforming from a nationwide dealerships network to one of the important players in China’s electric vehicle market.
KXIN shares are trading higher by 17 cents, or 12.1% at $1.58 first thing Thursday.
