Kaixin Auto Group reported a 602% increase in revenue for the first half of 2026.

Kaixin disclosed the results in a Form 6-K filed with the Securities and Exchange Commission on Wednesday for the six months ended Jun. 30

Kaixin Auto surged more than 100% at one point in premarket trading on Thursday and was up over 80% as of press time.

Revenue Surges on Hong Kong Car Sales

Total revenue hit $667,000 for the period, up from $95,000 a year earlier, driven mainly by car sales through the company’s Hong Kong subsidiary, Jet Sound Hong Kong Company Limited.

Net loss attributable to shareholders narrowed 77% to $1.9 million from $8.4 million in the same period of 2025.

However, gross profit for the period dropped by 76% to $23,000.

Going-Concern Doubt and Dilution Risk Cloud Outlook

Despite the improved bottom line, Kaixin flagged substantial doubt about its ability to continue as a going concern, citing $9.3 million in current liabilities against just $1.6 million in current assets.

The SEC filing also said the stock consideration linked to Kaixin’s Aug. 26 agreement to acquire Hongkong Taohaoche Limited has lost more than 70% of its value since the deal was signed. As a result, Kaixin’s board approved the issuance of an additional 10 million Class A ordinary shares to the seller on Sept. 3.

The shares will be held in escrow and released based on performance targets set for the six years following the purchase agreement.

Benzinga’s Take: This indicates a potential dilution risk ahead for existing shareholders.