SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
6-K
REPORT
OF
FOREIGN ISSUER
PURSUANT
TO RULE 13a-16 OR 15d-16 OF
THE
SECURITIES EXCHANGE ACT OF 1934
For
the
month of June 2008
HIGHWAY
HOLDINGS LIMITED
(Translation
of Registrant's Name Into English)
Suite
810, Level 8
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 x
Form
40-F
o
(Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes
o
No
x
(If
"Yes"
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-_______________.)
Attached
to this Report on Form 6-K are two press releases issued by the registrant
on
June 24, 2008 and June 30, 2008.
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:
June 30, 2008
|
By
/s/ ROLAND W.
KOHL
|
|
Roland W. Kohl
|
|
|
Chief Executive Officer
|
|
NEWS
RELEASE
|
|
CONTACT:
|
Gary
S. Maier
|
|
Maier
& Company, Inc.
|
|
(310)
442-9852
|
HIGHWAY
HOLDINGS RECEIVES OEM TOOLING ORDER
FROM
EUROPEAN APPLIANCE COMPANY
HONG
KONG - June
24, 2008 --
Highway
Holdings Limited (Nasdaq:HIHO) today announced
it has received a tooling order from a leading European appliance company to
be
utilized for the production of several plastic components, which, after
assembly, will function as an indicator unit for monitoring the dust bag
capacity of vacuum cleaners.
Terms
were not disclosed.
“Based
on
a long business relationship with one of this organization’s other smaller
factories, we were able to gain interest in our services from a second factory
and secure a tooling order. A tooling order
usually leads to a long-term OEM production arrangement. We regard this as
a
major breakthrough and a strategic opportunity to expand the business
relationship with this highly respected appliance
company,” said Roland Kohl, president and chief executive officer.
He
noted
that the expected original equipment manufacturing order will utilize the
company’s plastic injection molding operation, as well as its assembly
capabilities.
About
Highway Holdings
Highway
Holdings produces a wide variety of high-quality products for blue chip original
equipment manufacturers -- from simple parts and components to sub-assemblies.
It also manufactures finished products, such as light fixtures, LED lights,
radio chimes and other electronic products. Highway Holdings is headquartered
in
Hong Kong and operates four manufacturing facilities in the People's Republic
of
China.
Except
for the historical information contained 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 Securities and Exchange Commission, including
without limitation, the company’s annual reports on Form 20-F.
#
#
#
|
|
NEWS
RELEASE
|
|
CONTACT:
|
Gary
S. Maier
|
Maier
& Company, Inc.
(310)
442-9852
HIGHWAY
HOLDINGS REPORTS FISCAL 2008 FOURTH QUARTER/ YEAR-END
RESULTS
--Backlog
Up Sharply As Operations Recover From Labor Unrest in
China--
HONG
KONG —June 30, 2008 —
Highway
Holdings Limited (Nasdaq:HIHO)
today
reported results
for its fiscal fourth quarter and year ended March 31, 2008 , reflecting the
impact of labor unrest in China in preceding quarters associated with new
government regulations concerning labor benefits and entitlements, overtime
work
reductions and workers’ compensation claims
Net
sales
for the fiscal fourth quarter were $7.8 million compared with $7.9 million
a
year earlier. For the same period, the company reported a net loss of $1.3
million, or $0.35 per share, compared with a net loss of $442,000, $0.13 per
share, a year ago.
Net
sales
for fiscal year 2008 increased 5.4 percent to $33.2 million from $31.4 million
in fiscal 2007, due to an $889,000 increase in sales derived from the company’s
OEM metal/plastic product business and a $1,268,000 increase in OEM electric
product sales. The company reported a net loss for fiscal 2008 of $1.9 million,
or $0.50 per share, compared with net income of $594,000, or $0.16 per diluted
share, a year earlier. Highway Holdings’ metal/plastic and electric products
constitute the company’s largest operations, representing approximately 96
percent of its net sales.
“Fiscal
2008 was a challenging period for the company. Nonetheless, we were able to
achieve an increase in net sales on a year-over-year basis and an order backlog
of approximately $5.0 million. As we commence a new fiscal year, the company’s
business opportunities are strong - and potentially enhanced by weaker
competitors not being able to survive the turmoil during the past year. We
are
optimistic that we will be able to maintain a stable workforce, manage increases
in energy and raw material costs and regain the momentum,” said Roland Kohl,
president and chief executive officer.
(more)
The
decrease in both the company’s gross profits and in its gross profits as a
percentage of sales reflects the significant increases in both the company’s
cost of labor and the cost of raw materials. Despite a $1,695,000 increase
in
net sales, the company’s gross profit decreased to $5,074,000 in fiscal 2008.
The company’s gross profits as a percentage of its net sales decreased to 15.3
percent in fiscal 2008 from 19.8 percent fiscal 2007. In addition to increased
labor and energy costs, the company paid
$188,000
and established
a reserve of $510,000 for potential labor claims awaiting decision by Chinese
courts - all of which impacted the company’s cost of goods sold in fiscal 2008.
During fiscal 2008, the cost of most raw materials also increased significantly,
including significant steel, plastic and component price increases. The rapid
rise in raw material costs combined with increased labor and energy costs
inhibited the company’s ability to pass these increases through to its customers
in a timely manner -- resulting in lower gross margins and reduced gross
profit
in fiscal 2008. In addition, during fiscal 2008, the RMB currency increased
substantially in value compared with the U.S. dollar. The company has adjusted
its pricing for new orders to take into account the new higher prices and
other
manufacturing costs, and therefore expects that its gross margins will increase
during the current fiscal year ending March 31, 2009. Selling, general and
administrative expenses for fiscal 2008 increased by $1,501,000,
or 25.7
percent, compared with fiscal 2007. The primary factors include (1) substantial
increases in professional fees, including payments to is auditors and attorneys;
(2) the additional general and administrative expenses attributable to the
newly
acquired Golden Bright operations (Golden Bright was acquired during fiscal
2007
and, therefore, only approximately one-half year’s expenses were included in
last fiscal year’s expenses); (3) increased charges from local governmental
agencies; (4) increased payroll expenses of its staff in China; (5) increased
transportation expenses; (6) a rise in bad debt expenses; and (7) a significant
loss of business at the company’s Goldenbright operations due to labor strikes
and worker slowdowns - resulting in operating losses due to insufficient
business turnover to cover minimum expenses to operate this factory.
The
company’s interest expenses decreased slightly in fiscal 2008 from $242,000 in
fiscal 2007 to $225,000 in fiscal 2008 due to the decrease in interest rates.
However, the company’s interest income in fiscal 2008 also decreased by $61,000
due to the decrease in the interest rates. As in fiscal 2007, the company
in
fiscal 2008 received income from currency exchange gains. The currency exchange
gains in both fiscal 2007 and 2008 were the result of the increase in the
value
of the euro compared to the U.S. dollar, which increased the value of payments
the company received in Euros from its sales in Europe. Sales to European
customers who paid in Euros represented approximately 18 percent of the
company’s net sales in fiscal 2008 and 20 percent in fiscal 2007. Since the
company does not undertake any currency hedging transactions, its financial
results will be affected by the future fluctuations of currencies. The company
does, however, have agreements with certain of its European customers that
limit
the risk of currency fluctuations.
Despite
the losses incurred by the company during the past fiscal year, as of March
31,
2008 the company had current assets of $16,790,000, working capital of
$7,556,000,
and
long-term debt, net of the current portion, of only $522,000.
(more)
About
Highway Holdings
Highway
Holdings produces a wide variety of high-quality products for blue chip original
equipment manufacturers -- from simple parts and components to sub-assemblies.
It also manufactures finished products, such as light fixtures, LED lights,
radio chimes and other electronic products. Highway Holdings is headquartered
in
Hong Kong and operates four manufacturing facilities in the People's Republic
of
China.
Except
for the historical information contained 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 Securities and Exchange Commission, including
without limitation, the company’s annual reports on Form 20-F.
(Financial
Tables Follow)
#
#
#
(more)
HIGHWAY
HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated
Statement of Income
(Dollars
in thousands, except per share data)
(Unaudited)
|
Quarter
ended
|
Year
End
|
||||||||||||
|
(Unaudited)
|
(Audited)
|
||||||||||||
|
March
31
|
March
31
|
||||||||||||
|
2008
|
2007
|
2008
|
2007
|
||||||||||
|
Net
sales
|
$
|
7,771
|
$
|
7,946
|
$
|
33,164
|
$
|
31,469
|
|||||
|
Cost
of sales
|
(7,012
|
)
|
(6,517
|
)
|
(28,090
|
)
|
(25,233
|
)
|
|||||
|
Gross
profit
|
759
|
1,429
|
5,074
|
6,236
|
|||||||||
|
Selling,
general and administrative expenses
|
(2,354
|
)
|
(1,825
|
)
|
(7,351
|
)
|
(5,850
|
)
|
|||||
|
Operating
Income (loss)
|
(1,595
|
)
|
(396
|
)
|
(2,277
|
)
|
386
|
||||||
|
Non-operating
items
|
|||||||||||||
|
Interest
expense
|
(44
|
)
|
(73
|
)
|
(225
|
)
|
(242
|
)
|
|||||
|
Exchange
gain (loss), net
|
107
|
(26
|
)
|
283
|
245
|
||||||||
|
Interest
income
|
18
|
32
|
100
|
161
|
|||||||||
|
Other
income
|
10
|
37
|
60
|
92
|
|||||||||
|
Gain
on disposal of partial interest in a subsidiary
|
111
|
-
|
111
|
-
|
|||||||||
|
Gain
on disposal of investment securities
|
2
|
-
|
2
|
-
|
|||||||||
|
Total
non-operating income (expenses)
|
204
|
(30
|
)
|
331
|
256
|
||||||||
|
Net
income (loss) before income tax and minority interests
|
(1,391
|
)
|
(426
|
)
|
(1,946
|
)
|
642
|
||||||
|
Income
taxes
|
(9
|
)
|
(16
|
)
|
(28
|
)
|
(48
|
)
|
|||||
|
Income
(loss) before minority interests
|
(1,400
|
)
|
(442
|
)
|
(1,974
|
)
|
594
|
||||||
|
Minority
Interests
|
53
|
-
|
53
|
-
|
|||||||||
|
Net
income (loss)
|
($1,347
|
)
|
($442
|
)
|
$
|
(1,921
|
)
|
$
|
594
|
||||
|
Earnings
(loss) per share - basic
|
($0.35
|
)
|
($0.13
|
)
|
$
|
(0.50
|
)
|
$
|
0.16
|
||||
|
Weight
average number of shares - basic
|
3,810
|
3,636
|
3,810
|
3,636
|
|||||||||
|
Earnings
(loss) per share - diluted
|
($0.35
|
)
|
($0.13
|
)
|
$
|
(0.50
|
)
|
$
|
0.16
|
||||
|
Weight
average number of shares - diluted
|
3,810
|
3,636
|
3,810
|
3,690
|
|||||||||
HIGHWAY
HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated
Balance Sheet
(In
thousands, except per share data)
|
March
31
|
March
31
|
||||||
|
2008
|
2007
|
||||||
|
Current
assets:
|
|||||||
|
Cash
and cash equivalents
|
$
|
3,889
|
$
|
5,299
|
|||
|
Restricted
cash
|
1,671
|
1,221
|
|||||
|
Accounts
receivable, net of doubtful accounts
|
4,766
|
4,742
|
|||||
|
Inventories
|
5,775
|
6,104
|
|||||
|
Short
term Investment
|
-
|
316
|
|||||
|
Prepaid
expenses and other current assets
|
689
|
680
|
|||||
|
Total
current assets
|
16,790
|
18,362
|
|||||
|
Property,
plant and equipment, (net)
|
3,646
|
3,980
|
|||||
|
Investment
in affiliates
|
2
|
2
|
|||||
|
Intangible
assets, (net)
|
52
|
70
|
|||||
|
Total
assets
|
20,490
|
22,414
|
|||||
|
Current
liabilities:
|
|||||||
|
Accounts
payable
|
$
|
3,757
|
$
|
3,990
|
|||
|
Short-term
borrowing
|
2,214
|
3,097
|
|||||
|
Current
portion of long-term debt
|
311
|
478
|
|||||
|
Accrued
mould charges
|
260
|
253
|
|||||
|
Accrual
payroll and employee benefits
|
988
|
446
|
|||||
|
Other
liabilities and accrued expenses
|
1,704
|
1,154
|
|||||
|
Total
current liabilities
|
9,234
|
9,418
|
|||||
|
Long-term
debt - net of current portion
|
522
|
655
|
|||||
|
Deferred
income taxes
|
189
|
174
|
|||||
|
Total
liabilities
|
9,945
|
10,247
|
|||||
|
Minority
Interest
|
151
|
-
|
|||||
|
Shareholders'
equity:
|
|||||||
|
Common
shares, $0.01 par value, authorized 20,000,000 shares
|
|||||||
|
3,779,746
shares as of March 31, 2007 and 3,819,900 shares
|
|||||||
|
As
of March 31, 2008 respectively, issued and outstanding
|
38
|
38
|
|||||
|
Additional
paid-in capital
|
11,562
|
11,304
|
|||||
|
Retained
earnings (Accumulated Deficit)
|
(614
|
)
|
1,439
|
||||
|
Accumulated
other comprehensive loss
|
(26
|
)
|
(48
|
)
|
|||
|
Subscription
receivable - 128,534 shares in
2007
|
(-
|
)
|
(513
|
)
|
|||
|
Treasury
shares, at cost - 37,800 shares in 2007; 166,334 shares in 2008
|
(566
|
)
|
(53
|
)
|
|||
|
Total
shareholders' equity
|
10,394
|
12,167
|
|||||
|
Total
liabilities and shareholders' equity
|
20,490
|
22,414
|
|||||