6-K
HIGHWAY HOLDINGS LTD (HIHO)
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2021
Commission File Number 001-38490
| HIGHWAY HOLDINGS LIMITED |
|---|
| (Translation of Registrant’s Name Into English) |
| Suite 1801, Level 18 |
| --- |
| Landmark North |
| 39 Lung Sum Avenue |
| Sheung Shui |
| New Territories, Hong Kong |
| (Address of Principal Executive Offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ___
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ___
Attached to this Report on Form 6-K are the press releases issued by the registrant on February 10, 2021 and February 16, 2021.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| HIGHWAY HOLDINGS LIMITED | ||
|---|---|---|
| Date: February 26, 2021 | By | /s/ ROLAND W. KOHL |
| --- | --- | --- |
| Roland W. Kohl | ||
| Chief Executive Officer |
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Exhibit 99.1
NEWS RELEASE
| CONTACT: | Gary S. Maier |
|---|
(310) 471-1288
HIGHWAY HOLDINGSREPORTS FISCAL 2021 THIRD QUARTER
AND NINE-MONTH RESULTS
HONG KONG — February 10, 2021 — Highway Holdings Limited (Nasdaq:HIHO) today reported results for its fiscal third quarter and nine months ended December 31, 2020, reflecting the impact of the COVID-19 pandemic on its customers and supply chain.
Net sales for the fiscal 2021 third quarter were $2.5 million compared with $3.6 million a year ago. For the same period, net income was $84,000, or $0.02 per diluted share, compared with $318,000, or $0.08 per diluted share, in the same quarter a year earlier.
For the nine months, net sales were $7.3 million compared with $9.6 million a year ago. For the same period, the company reported net income of $90,000, or $0.02 per diluted share, compared with a net income of $123,000, or $0.03 per diluted share, a year earlier.
“Results for the quarter were impacted by the ongoing global effects of COVID-19. In addition, trade-related issues involving China, the United States and Australia may have impacted the supply of components and raw materials for the whole industry and also the requirements for the company’s regular business. These factors also delayed the start of manufacturing activities for new business from existing and new customers. Certain other projects have also been delayed due to COVID-related travel restrictions that prevented the company’s engineers traveling from China to Myanmar to setup new production lines,” said Roland Kohl, chairman, president and chief executive officer of Highway Holdings.
“Notwithstanding the current political unrest in Myanmar, the company’s Yangon factory has been able, to date, to continue to operate, manufacture and ship products to our customers; and there have been no delays in receiving raw materials due to this situation,” Kohl said.
Kohl noted the company’s financial results benefitted from the reversal of prior-year tax provisions, as well as government subsidies from China and Hong Kong reduced rental and electricity charges in China.
Gross margin as a percentage of sales for the three months ended December 31, 2020 increased to 34.0 percent from 33.7 percent a year earlier, and gross margin as a percentage of sales for the nine months increased to 31.7 percent from 29.0 percent last year.
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Highway Holdings Ltd.
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Selling, general and administrative expenses decreased for the quarter by $26,000 and by $524,000 for the nine-month period on a year-over-year basis – benefitting from streamlining of operations, government subsidies for employees and reduced electricity charges.
Net income for the fiscal third quarter reflects a currency exchange loss of $22,000 compared with a currency exchange gain of $17,000 a year ago. The company reported a $60,000 currency exchange loss for the fiscal 2021 nine months compared with a $112,000 currency exchange gain a year earlier. The currency exchange losses in the current year were mainly due to the strengthening of the RMB. The company does not engage in currency exchange rate hedging, and the fluctuations in the exchange rate of the RMB and Kyat are expected to affect the company’s future results.
Kohl noted the company’s balance sheet remains strong, despite a decrease in cash. The company’s total cash position at December 31, 2020 was approximately $7.5 million, or approximately $2.00 per diluted share, compared with $8.8 million at March 31, 2020. Cash utilization reflects an increase in pre-payments and a reduction of accounts payable, both of which were made to secure delivery of production material. The present shortage of raw materials may remain for the foreseeable future, with the sharp increase in prices caused by the interruption of the supply chain affecting the company’s current production -- including the production of the Playmaji gaming console manufacturing order, as previously announced, which was delayed due to these factors.
The company’s current ratio was 2.9:1 at December 31, 2020, and the company’s total cash exceeded all current and long-term liabilities combined by $2 million.
About Highway Holdings
Highway Holdings is an international manufacturer of a wide variety of high-quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings’ administrative office is located in Hong Kong and its manufacturing facilities are located in Yangon, Myanmar and Shenzhen, China.
Except for the historical informationcontained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties,including but not limited to economic, competitive, governmental, political and technological factors affecting the company’s revenues,operations, markets, products and prices, the impact of the worldwide COVID-19 pandemic, and other factors discussed in the company’svarious filings with the Securities and Exchange Commission, including without limitation, the company’s annual reports onForm 20-F.
(Financial Tables Follow)
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HIGHWAY HOLDINGSLIMITED AND SUBSIDIARIES
Consolidated Statementof Income
(Dollars in thousands, except per share data)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| **** | 2020 | **** | 2019 | **** | 2020 | **** | 2019 | **** | ||||
| Net sales | $ | 2,544 | $ | 3,590 | $ | 7,320 | $ | 9,630 | ||||
| Cost of sales | 1,676 | 2,379 | 5,000 | 6,828 | ||||||||
| Gross profit | 868 | 1,211 | 2,320 | 2,802 | ||||||||
| Selling, general and administrative expenses | 849 | 875 | 2,277 | 2,801 | ||||||||
| Operating income/(loss) | 19 | 336 | 43 | 1 | ||||||||
| Non-operating items | ||||||||||||
| Exchange gain /(loss), net | (22 | ) | 17 | (60 | ) | 112 | ||||||
| Interest income | 7 | 12 | 15 | 42 | ||||||||
| Gain/(Loss) on disposal of Asset | 0 | 14 | 9 | 17 | ||||||||
| Other income/(expenses) | 0 | 0 | 8 | 1 | ||||||||
| Total non-operating income/ (expenses) | (15 | ) | 43 | (28 | ) | 172 | ||||||
| Net profit before income tax and non-controlling interests | 4 | 379 | 15 | 173 | ||||||||
| Income taxes benefit/(expense) | 80 | (60 | ) | 80 | (60 | ) | ||||||
| Net profit before non-controlling interests | 84 | 319 | 95 | 113 | ||||||||
| Less: net gain/(loss) attributable to non-controlling interests | 0 | 1 | 5 | (10 | ) | |||||||
| Net income/(loss) attributable to Highway Holdings Limited’s shareholders | 84 | $ | 318 | 90 | $ | 123 | ||||||
| Net Gain/ (loss) per share – Basic and Diluted | ||||||||||||
| Basic | $ | 0.02 | $ | 0.08 | $ | 0.02 | $ | 0.03 | ||||
| Diluted | $ | 0.02 | $ | 0.08 | $ | 0.02 | $ | 0.03 | ||||
| Weighted average number of shares outstanding | ||||||||||||
| Basic | 3,977 | 3,977 | 3,977 | 3,895 | ||||||||
| Diluted | 4,173 | 3,977 | 4,073 | 3,895 |
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HIGHWAY HOLDINGSLIMITED AND SUBSIDIARIES
Consolidated Balance Sheet
(Dollars in thousands, except per share data)
| Mar 31 | |||||
|---|---|---|---|---|---|
| 2020 | |||||
| Current assets: | |||||
| Cash and cash equivalents | 7,487 | $ | 8,827 | ||
| Accounts receivable, net of doubtful accounts | 2,017 | 2,008 | |||
| Inventories | 1,501 | 2,000 | |||
| Prepaid expenses and other current assets | 583 | 388 | |||
| Total current assets | 11,588 | 13,223 | |||
| Property, plant and equipment, (net) | 966 | 878 | |||
| Operating lease right-of-use assets | 2,944 | 3,710 | |||
| Long-term deposits | 263 | 263 | |||
| Long-term loan receivable | 95 | 95 | |||
| Investments in equity method investees | - | - | |||
| Total assets | 15,856 | $ | 18,169 | ||
| Current liabilities: | |||||
| Accounts payable | 620 | $ | 997 | ||
| Operating lease liabilities, current | 749 | 782 | |||
| Other liabilities and accrued expenses | 2,021 | 2,294 | |||
| Income tax payable | 553 | 564 | |||
| Dividend payable | 5 | 351 | |||
| Total current liabilities | 3,948 | 4,988 | |||
| Long term liabilities : | |||||
| Operating lease liabilities, non-current | 1,351 | 2,034 | |||
| Deferred income taxes | 229 | 229 | |||
| Total liabilities | 5,528 | 7,251 | |||
| Shareholders’ equity: | |||||
| Preferred shares, 0.01 par value | - | - | |||
| Common shares, 0.01 par value | 40 | 40 | |||
| Additional paid-in capital | 11,596 | 11,537 | |||
| Accumulated deficit | (1,410 | ) | (865 | ) | |
| Accumulated other comprehensive income/(loss) | 87 | 196 | |||
| Non-controlling interest | 15 | 10 | |||
| Total shareholders’ equity | 10,328 | 10,918 | |||
| Total liabilities and shareholders’ equity | 15,856 | $ | 18,169 |
All values are in US Dollars.
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NEWS RELEASE
| CONTACT: | Gary S. Maier |
|---|
(310) 471-1288
HIGHWAY HOLDINGS LIMITED DECLARES CASHDIVIDEND
HONG KONG –February 16,2021-- Highway Holdings Limited (Nasdaq:HIHO) today announced its board of directors has declared a cash dividend of $0.02 per share on the company’s common stock. The dividend will be paid on April 8, 2021 to shareholders of record on March 1, 2021.
About Highway Holdings
Highway Holdings is an international manufacturer of a wide variety of quality parts products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings’ administrative offices are located in Hong Kong, and its manufacturing facilities are located in Yangon, Myanmar and Shenzhen, China.
Except for the historical informationcontained herein, the matters discussed in this press release are forward-looking statements which involve risks and uncertainties,including but not limited to economic, competitive, governmental, political and technological factors affecting the company’s revenues,operations, markets, products and prices, and other factors discussed in the company’s various filings with the Securitiesand Exchange Commission, including without limitation, the company’s annual reports on Form 20-F.
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