Kaixin Holdings Announces Intended Acquisition of Honglu Technology to Optimize AI Applications - News Release

Aug 28, 2026

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Kaixin Holdings announced the signing of a term sheet to acquire Honglu Technology and plans to issue new shares to obtain a 51% stake. The transaction is positioned as deep collaboration to develop an “AI + Animation” ecosystem, strengthen AI innovation in animation production, and expand global growth opportunities. Honglu Technology’s strengths span 3D animation production capabilities, AI R&D, experienced teams, content sourcing partnerships, IP operations, and multiple software and animation-related patents. Kaixin also noted the termination of a prior intended acquisition of Xingcan and described its continued focus on AI-driven technology and education platforms.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages2

Reading Time5 min

AccessFree to download

Transaction Overview

Planned 51% Acquisition

Collaboration Goals (AI + Animation)

Honglu Technology Capabilities

Technical and Team Advantages

Content Sources and IP Advantages

Patents and Network Partnerships

Related Corporate Updates

Termination of Xingcan Acquisition Pursuit

Kaixin’s AI-Driven Strategy

Forward-Looking Statements

Safe Harbor Disclosures

Kaixin Holdings Announces Intended Acquisition of Honglu Technology to Optimize AI Applications October 28, 2025 BEIJING, Oct. 28, 2025 (GLOBE NEWSWIRE) --Kaixin Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced the signing of a term sheet to acquire Honglu Technology, a leading Chinese AI animation company. Kaixin plans to issue new shares to acquire a 51% stake in Honglu Technology. This transaction marks a deep collaboration between the two parties, focusing on the global development of the "AI + Animation"ecosystem and on promoting AI innovation in animation production. Honglu Technology is dedicated to innovation and R&D in animation technology, including the transition from traditional animation to computergenerated graphics and the application of emerging technologies such as rendering, animation algorithms, and AI research. The company strives to provide high-quality, engaging animated content and to advance the animation industry continuously. Its core business includes 3D animated series, shorts, and feature films. Its expansion efforts include image licensing, virtual idols, and one-click comics, aiming to build a comprehensive IP industry chain. Honglu Technology boasts of strengths in five key areas: 1. Technical Advantage Full-range coverage of the 3D animation production process, stunning visuals from the UE5 Unreal Engine, AI technology R&D capabilities, and dual production lines for MAYA and Unreal Engine. 2. Team Advantage The core team has over 10 years of industry experience across the entire production process and has produced nearly 5,000 hours of S-rated anime series. 3. Content Sources Advantage Strategic partnership with Youku Entertainment and suppliers of high-quality S-rated anime series. 4. IP Advantage Ownership of both original IP and novel copyright IP, a large fan base, the ability to continuously generate IP, with a wide range of derivative products, forming an integrated ecosystem. 5. Qualifications Advantage Honglu Technology has registered 19 software patents, including the Character Design Production System v1 .0, Expression Capture Processing Platform v1 .0, and Honglu Asset Management Software v1 .0. It also holds a high-level patent for "Animation, Comics, and Costume Design," an integrated system for displaying and capturing costumes in animation. This demonstrates its strong technical capabilities. 6. Network Advantage Xuanji Technology, the creator of nationally recognized anime IPs such as "Qin's Moon," "Douluo Dalu," and "Tian Xing Jiu Ge," possesses top-tier IP operation capabilities, sophisticated 3D production technology, and a vast fan base. Honglu’s deep partnership with Xuanji Technology provides its platform with unprecedented strategic depth. At the same time, Youku, Tencent, and iQiyi—the three major video giants in China—have al established deep partnerships with Honglu Technology, creating an ecosystem-wide bond based on a shared vision. In addition, since the previously intended acquisition of Xingcan did not meet mutual expectations, Kaixin and Xingcan agreed to terminate the pursuit of the acquisition. Kaixin will continue to optimize AI application scenarios and strive to become an AI-driven technology company. About Kaixin Holdings Kaixin Holdings is committed to transitioning into an AI-driven tech 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 enters 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 contain forward-looking statements. These 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 s

FAQs

What acquisition does Kaixin Holdings plan to make?

Kaixin Holdings plans to acquire Honglu Technology by issuing new shares to obtain a 51% stake.

How does the deal aim to optimize AI applications?

The transaction focuses on advancing the “AI + Animation” ecosystem and promoting AI innovation in animation production, supported by Honglu’s animation and AI capabilities.

What were Kaixin and Xingcan’s next steps?

Kaixin stated that, since the previously intended acquisition of Xingcan did not meet mutual expectations, both parties agreed to terminate the acquisition pursuit.

Aug 28, 2026

Upload by James