BEIJING, Oct. 28, 2025 — Kaixin Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced the signing of a term sheet for the acquisition of Honglu Technology, a prominent Chinese company specializing in AI animation. Kaixin intends to issue new shares to secure a 51% stake in Honglu Technology. This transaction signifies a profound collaboration between the two entities, aimed at advancing the global “AI + Animation” ecosystem and fostering AI innovations in animation production.
Honglu Technology is committed to innovation and research & development in animation technology, including its transition from traditional animation methods to computer-generated graphics and the integration of emerging technologies such as rendering, animation algorithms, and AI research. The company endeavors to deliver high-quality, engaging animated content and to consistently propel the animation industry forward. Its primary business areas encompass 3D animated series, shorts, and feature films. Its expansion efforts include image licensing, virtual idols, and one-click comics, with the goal of establishing a comprehensive intellectual property (IP) industry chain. Honglu Technology boasts strengths across five key domains:
1. Technical Prowess
Comprehensive coverage of the 3D animation production pipeline, stunning visual fidelity achieved with the UE5 Unreal Engine, robust AI technology R&D capabilities, and dual production lines supporting both MAYA and Unreal Engine.
2. Team Expertise
The core team possesses over 10 years of industry experience spanning the entire production process and has successfully produced nearly 5,000 hours of top-tier (S-rated) anime series.
3. Diverse Content Portfolio
A strategic partnership with Youku Entertainment and established relationships with suppliers of high-quality S-rated anime series.
4. Intellectual Property Strength
Ownership of both proprietary IP and newly copyrighted IP, a substantial and engaged fan base, the capacity for continuous IP generation, and a wide array of derivative products, collectively forming an integrated ecosystem.
5. Accreditations and Patents
Honglu Technology has registered 19 software patents, including its Character Design Production System v1.0, Expression Capture Processing Platform v1.0, and Honglu Asset Management Software v1.0. Furthermore, it holds a significant patent for an “Animation, Comics, and Costume Design” system, which is an integrated solution for displaying and capturing costumes in animation, underscoring its formidable technical capabilities.
6. Extensive Network
Xuanji Technology, the creator of nationally acclaimed anime IPs such as “Qin’s Moon,” “Douluo Dalu,” and “Tian Xing Jiu Ge,” demonstrates exceptional IP operation capabilities, sophisticated 3D production technology, and a vast fan base. Honglu’s deep collaboration with Xuanji Technology provides its platform with unparalleled strategic depth. Concurrently, Youku, Tencent, and iQiyi—China’s three major video platforms—have all established robust partnerships with Honglu Technology, fostering an ecosystem-wide bond founded on a shared vision.
Additionally, as the previously planned acquisition of Xingcan did not meet mutual expectations, Kaixin and Xingcan mutually agreed to discontinue pursuing the acquisition. Kaixin will persist in optimizing AI application scenarios and is committed to becoming an AI-driven technology company.
About Kaixin Holdings
Kaixin Holdings is committed to its transition into an AI-driven technology business located in China. XINGCAN utilizes AI technologies to develop and operate online live streaming education platforms and packages, serving both domestic and international audiences. Through the proposed acquisition, Kaixin is entering the AI education business and aims to expand its AI capacity into new areas to create more growth opportunities.
Safe Harbor Statement
This announcement may include forward-looking statements. Such statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” or other similar expressions. Any statements that are not historical facts, including those concerning Kaixin’s beliefs and expectations, are considered forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: our goals and strategies; our future business development, financial condition, and results of operations; our expectations regarding demand for and market acceptance of our services; our expectations regarding the retention and strengthening of our relationships with auto dealerships; our plans to enhance user experience, infrastructure, and service offerings; competition in our industry in China; and relevant government policies and regulations relating to our industry. Further information regarding these and other risks is included in our other documents filed with the SEC. All information provided in this announcement and in the attachments is as of the date of this announcement, and Kaixin does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For further details, please reach out to:
Kaixin Holdings
Investor Relations
Email: ir@kaixin.com
