HONG
KONG, July 12, 2024 /PRNewswire/ -- Highway
Holdings Limited (Nasdaq: HIHO) (the "Company" or "Highway
Holdings") today announced it has restated its unaudited quarterly
financial statements for the three and nine months ended
December 31, 2023, which were
released in an earnings press release on February 1, 2024. The decision to restate the
financial statements was approved on July
12, 2024 by Highway Holdings' Board of Directors upon the
recommendation of the Audit Committee of the Board of Directors and
after consultation with management.
Investors should no longer rely upon the previously released
financial statements cited above. Similarly, any other press
releases and investor communications containing information derived
from such financial statements should no longer be relied upon.
The Company has concluded that the interim financial statements
cannot be relied upon due to the misapplication of a revenue
recognition accounting standard following a change in inventory
fulfillment and transfer procedures by one of the Company's
customers. The inventory adjustment resulted in the erroneous
inclusion of $1,875,000 in net sales
and $1,921,000 in cost of sales from
the transfers of certain parts to be included in products
manufactured by the Company for its customer. This misapplication
was identified during the preparation of Highway Holdings' Annual
Report on Form 20-F for the fiscal year ended March 31, 2024. The restated financial statements
for the three and nine months ended December
31, 2023 are attached to this press release.
The adjustments to net sales and other line items resulting from
the changed inventory transfer policies resulted in an increase in
net income for the third quarter of fiscal year 2024 from
$302,000, or $0.07 per diluted share, to $348,000, or $0.08
per diluted share, and resulted in an increase in net income for
the first nine months of fiscal year 2024 from $177,000, or $0.04
per diluted share, to $223,000, or
$0.05 per diluted share in the
restated financial statements
Today's announcement reiterates Highway Holdings' continued
commitment to improve its practices and uphold the highest
standards of financial reporting.
About Highway Holdings
Highway Holdings is an international manufacturer of a wide
variety of quality parts and 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. For more
information visit website www.highwayholdings.com.
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, the impact of the worldwide COVID-19
pandemic, 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)
|
HIGHWAY HOLDINGS
LIMITED AND SUBSIDIARIES
|
|
Consolidated
Statement of Income
|
|
(Dollars in thousands,
except per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
|
|
|
|
|
|
2023
Announced
|
|
2023
Restated
|
|
2023
Announced
|
|
2023
Restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$4,107
|
|
$2,232
|
|
$6,776
|
|
$4,901
|
|
|
|
Cost of
sales
|
3,231
|
|
1,310
|
|
5,140
|
|
3,219
|
|
|
|
Gross profit
|
876
|
|
922
|
|
1,636
|
|
1,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
679
|
|
679
|
|
1,728
|
|
1,728
|
|
|
|
Operating
income/(loss)
|
197
|
|
243
|
|
(92)
|
|
(46)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange gain
/(loss),
net
|
27
|
|
27
|
|
58
|
|
58
|
|
|
|
Interest
income
|
63
|
|
63
|
|
156
|
|
156
|
|
|
Gain/(Loss) on
disposal of Asset
|
3
|
|
3
|
|
16
|
|
16
|
|
|
|
Other
income/(expenses)
|
8
|
|
8
|
|
14
|
|
14
|
|
|
|
Total non-operating
income/ (expenses)
|
101
|
|
101
|
|
244
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before income
tax and non-controlling interests
|
298
|
|
344
|
|
152
|
|
198
|
|
|
|
Income taxes
|
1
|
|
1
|
|
7
|
|
7
|
|
|
|
Net income before
non-controlling interests
|
299
|
|
345
|
|
159
|
|
205
|
|
|
|
Net loss
attributable to non-controlling
interests
|
3
|
|
3
|
|
18
|
|
18
|
|
|
|
Net income
attributable to Highway
Holdings
Limited's shareholders
|
302
|
|
348
|
|
177
|
|
223
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Gain/ (loss) per
share –
Basic
|
$0.07
|
|
$0.08
|
|
$0.04
|
|
$0.05
|
|
|
|
Net Gain/ (loss) per
share -
Diluted
|
$0.07
|
|
$0.08
|
|
$0.04
|
|
$0.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number
of shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
4,386
|
|
4,386
|
|
4,314
|
|
4,314
|
|
|
|
Diluted
|
4,396
|
|
4,396
|
|
4,323
|
|
4,323
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIGHWAY HOLDINGS
LIMITED AND SUBSIDIARIES
|
|
Consolidated Balance
Sheet
|
|
(Dollars in thousands,
except per share data)
|
|
|
|
|
|
Dec
31
|
|
Dec 31
|
|
2023
Announced
|
|
2023
Restated
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$6,186
|
|
$6,186
|
|
Accounts receivable,
net of doubtful accounts
|
3,533
|
|
1,658
|
|
Inventories
|
1,812
|
|
1,858
|
|
Prepaid expenses and
other current assets
|
200
|
|
200
|
|
Income tax
recoverable
|
-
|
|
-
|
|
Total current
assets
|
11,731
|
|
9,902
|
|
|
|
|
|
Property, plant and
equipment, (net)
|
379
|
|
379
|
|
Operating lease
right-of-use assets
|
2,004
|
|
2,004
|
|
Long-term
deposits
|
205
|
|
205
|
|
Long-term loan
receivable
|
95
|
|
95
|
|
Investments in equity
method investees
|
-
|
|
-
|
|
Total assets
|
$14,414
|
|
$12,585
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$2,477
|
|
$602
|
|
Operating lease
liabilities, current
|
586
|
|
586
|
|
Other liabilities and
accrued expenses
|
1,845
|
|
1,845
|
|
Income tax
payable
|
551
|
|
551
|
|
Dividend
payable
|
46
|
|
46
|
|
Total current
liabilities
|
5,505
|
|
3,630
|
|
|
|
|
|
Long term
liabilities:
|
|
|
|
|
Operating lease
liabilities, non-current
|
1,013
|
|
1,013
|
|
Deferred income
taxes
|
98
|
|
98
|
|
Long terms accrued
expenses
|
17
|
|
17
|
|
Total
liabilities
|
6,633
|
|
4,758
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Preferred shares, $0.01
par value
|
-
|
|
-
|
|
Common shares, $0.01
par value
|
44
|
|
44
|
|
Additional paid-in
capital
|
12,140
|
|
12,140
|
|
Accumulated
deficit
|
(3,879)
|
|
(3,833)
|
|
Accumulated other
comprehensive income/(loss)
|
(517)
|
|
(517)
|
|
Non-controlling
interest
|
(7)
|
|
(7)
|
|
Total shareholders' equity
|
7,781
|
|
7,827
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$14,414
|
|
$12,585
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/highway-holdings-restates-unaudited-financial-statements-for-3-and-9-months-ended-december-31-2023-resulting-in-higher-net-income-for-both-periods-302195333.html
SOURCE Highway Holdings Limited