Kaixin to acquire 55% stake in Chinese AI education firm XINGCAN

BEIJING - Kaixin Holdings (NASDAQ:KXIN), whose shares have surged over 31% in the past week despite a 44% year-to-date decline, announced Wednesday it has signed a term sheet to acquire a 55% stake in XINGCAN, a Chinese AI education company, through the issuance of new shares. According to InvestingPro data, the micro-cap company, currently valued at $9.2 million, is trading below its Fair Value.

The acquisition will focus on developing a global "AI + Education + Live Streaming" ecosystem, according to a company press release. Financial terms were not disclosed.

XINGCAN operates an AI-powered education platform that combines live streaming with educational content. The company’s business model includes content production, live streaming interaction, teaching services, and user growth strategies.

The firm’s technology includes an AI customer acquisition system that generates course content automatically and analyzes student learning data. XINGCAN claims to serve over 300,000 users annually and reports a 300% improvement in teaching efficiency through its AI tools.

Previous investors in XINGCAN include GSR Ventures, Xiangfeng Fund, Himalaya, Kinzon Capital, and Century Tianhong.

"XINGCAN is not a simple education technology company; it’s a leading builder of the ’AI + Education + Live Streaming’ ecosystem," said Mingjun Lin, Chairman and CEO of Kaixin, in the statement.

XINGCAN aims to achieve 50% annual growth over the next few years through the partnership, utilizing Kaixin’s traffic matrix, technical platform, and global channels.

Kaixin Holdings, which trades on the Nasdaq, is transitioning into an AI-driven technology business based in China. The acquisition represents Kaixin’s entry into the AI education sector.

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