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 November 2009
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 is the press release issued by the registrant on
November 10, 2009.
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: November
30, 2009
|
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 REPORTS FISCAL 2010 SECOND QUARTER RESULTS
--Net
profit increases; Sees Signs of Recovery from Worldwide Economic
Downturn--
HONG KONG — November 10, 2009
— Highway Holdings Limited (Nasdaq: ) today
reported results for its second fiscal quarter ended September 30, 2009,
reflecting a modest gain in net income and gross margin improvement despite the
impact of global economic conditions on net sales.
Net
income for the 2010 fiscal second quarter increased to $139,000, or $0.04 per
diluted share, from $100,000, or $0.03 per diluted share, a year earlier. Net
sales for same period were $5.2 million compared with $9.5 million a year
earlier.
Net
income for the first half of fiscal 2010 was $3,000, compared with a net income
of $387,000, a year earlier. Net sales for the six-month period were $9.8
million compared with $18.9 million a year ago --reflecting the full impact of
global economic conditions on the company’s major customers during the first two
quarters of the new fiscal year.
“As
expected, net sales were substantially lower during the first six months of this
fiscal year than last year as a result of fewer orders received and a change in
pricing policy that reduces our sales price when material costs
decrease. The decrease in orders was due to the effects of the
worldwide recession on our clients. Orders, however, started to
improve beginning in August,” said Roland Kohl, president and chief
executive officer.
Kohl
further noted that despite reduced sales levels, the company was able to post a
profit for both the second fiscal quarter and the six-month period– a result of
management’s precautionary measures that were implemented at the beginning of
the current recession, including a 50 percent reduction in the workforce;
successful new pricing policies with customers to address raw material cost
price fluctuations; greater utilization of automation, and improved overall
efficiency. “As a result of these measures and several other
initiatives, I believe that we are well positioned to realize significant
improvement in our operating results as economic conditions improve and net
sales increase,” Kohl said
(more)
Highway
Holdings Ltd.
2-2-2
Gross
profit as a
percentage of sales for the quarter increased to 25.2
percent from 19.1 percent in the same period a
year ago as a result of the company’s new pricing policies and the increase in
automation.
Selling,
general and administrative expenses decreased to $1.22 million during the second
quarter of the current fiscal year from $1.45 million in same quarter a year
ago. The decrease in selling, general and administrative expenses was the result
of ongoing streamlining of its administrative operations and the decrease in
sales. The company is in the process of consolidating three of its manufacturing
operations into one. Kohl noted that the company’s factory located in
He Yuan has already been relocated to the company’s facilities in Long Hua, and
that its Golden Bright facility in Ping Hsu is in the process of also being
integrated into the main operation in Long Hua. Once completed, the
consolidation of these three facilities is expected to contribute major further
cost reductions.
The
company realized a $67,000 currency exchange gain during the fiscal 2010 second
quarter compared with a $197,000 currency exchange loss during the same period
last year, due to the strong value of the Euro compared with the U.S.
dollar. For the six-months, the company realized a currency exchange
gain of $348,000 compared with a currency exchange loss of $205,000 a year
earlier. Since the company does not engage in currency exchange rate hedging,
the company will in the future continue to realize currency exchange gains and
losses as a result of the fluctuation of currency exchange rates.
Kohl
highlighted the company’s strong balance sheet, with cash and cash equivalents
and restricted cash increasing by $68,000 to $6.9 million, or $1.8 cash per
share, from March 31, 2009 to September 30, 2009. He also noted that inventory,
accounts receivable and other current assets at September 30, 2009 were reduced
by $1.03 million from levels at March 31, 2009 – representing cash, cash
equivalents and restricted cash being approximately half of current
assets. Current liabilities at September 30, 2009 totaled $4.86
million and current assets were 13.9 million. Total shareholders’
equity at September 30, 2009 was $ 11.2 million, or $2.96 per diluted share,
compared with $11.4 million, or $3.07 per diluted share, at March 31,
2009.
Highway
Holdings Ltd.
3-3-3
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 LED lights, radio chimes and other
electronic products. Highway Holdings is headquartered in Hong Kong
and operates three 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)
# # #
HIGHWAY
HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated
Statement of Income
(Dollars
in thousands, except per share data)
(Unaudited)
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
|
September
30,
|
September
30,
|
|||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Net
sales
|
$ | 5,219 | $ | 9,507 | $ | 9,834 | $ | 18,854 | ||||||||
|
Cost
of sales
|
3,904 | 7,690 | 7,776 | 15,092 | ||||||||||||
|
Gross
profit
|
1,315 | 1,817 | 2,058 | 3,762 | ||||||||||||
|
Selling,
general and administrative expenses
|
1,224 | 1,445 | 2,397 | 3,058 | ||||||||||||
|
Operating
income / (loss)
|
91 | 372 | (339 | ) | 704 | |||||||||||
|
Non-operating
items
|
||||||||||||||||
|
Interest
expenses
|
(12 | ) | (48 | ) | (30 | ) | (88 | ) | ||||||||
|
Exchange
gain (loss), net
|
67 | (197 | ) | 348 | (205 | ) | ||||||||||
|
Interest
income
|
19 | 9 | 23 | 20 | ||||||||||||
|
Other
income
|
2 | 4 | 12 | 19 | ||||||||||||
|
Total
non-operating income (expenses)
|
76 | (232 | ) | 353 | (254 | ) | ||||||||||
|
Net
income before income tax and non-controlling interest
|
167 | 140 | 14 | 450 | ||||||||||||
|
Income
taxes
|
0 | 38 | 0 | 77 | ||||||||||||
|
Net
Income before non-controlling interests
|
167 | 102 | 14 | 373 | ||||||||||||
|
Less:
Net income attributable to non-controlling interest
|
(28 | ) | (2 | ) | (11 | ) | 14 | |||||||||
|
Net
Income attributable to Highway Holdings
Limited
|
$ | 139 | $ | 100 | $ | 3 | $ | 387 | ||||||||
|
Net Income
– basic and diluted
|
||||||||||||||||
|
Net Income
attributable to Highway Holdings
Limited
|
$ | 0.04 | $ | 0.03 | $ | 0.00 | $ | 0.10 | ||||||||
|
Weighted
average number of shares
|
||||||||||||||||
|
Basic
|
3,758 | 3,734 | 3,758 | 3,734 | ||||||||||||
|
Diluted
|
3,787 | 3,734 | 3,787 | 3,734 | ||||||||||||
HIGHWAY
HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated
Balance Sheet
(In
thousands, except per share data)
|
Sep
30
|
March
31
|
|||||||
|
2009
|
2009
|
|||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 5,877 | $ | 5,809 | ||||
|
Restricted
cash
|
1,028 | 1,028 | ||||||
|
Accounts
receivable, net of doubtful accounts
|
2,568 | 3,426 | ||||||
|
Inventories
|
3,824 | 4,010 | ||||||
|
Prepaid
expenses and other current assets
|
617 | 672 | ||||||
|
Total
current assets
|
13,914 | 14,945 | ||||||
|
Property,
plant and equipment, (net)
|
2,464 | 2,840 | ||||||
|
Investment
in affiliates
|
2 | 2 | ||||||
|
Intangible
assets, (net)
|
16 | 24 | ||||||
|
Total
assets
|
16,396 | $ | 17,811 | |||||
|
Current
liabilities:
|
||||||||
|
Accounts
payable
|
$ | 2,362 | $ | 2,166 | ||||
|
Short-term
borrowing
|
553 | 1,850 | ||||||
|
Current
portion of long-term debt
|
265 | 259 | ||||||
|
Accrual
payroll and employee benefits
|
424 | 373 | ||||||
|
Other
liabilities and accrued expenses
|
1,252 | 1,257 | ||||||
|
Total
current liabilities
|
4,856 | 5,905 | ||||||
|
Long-term
debt – net of current portion
|
161 | 294 | ||||||
|
Deferred
income taxes
|
163 | 163 | ||||||
|
Total
liabilities
|
5,180 | 6,362 | ||||||
|
Shareholders'
equity:
|
||||||||
|
Common
shares, $0.01 par value
|
37 | 37 | ||||||
|
Additional
paid-in capital
|
11,224 | 11,224 | ||||||
|
Retained
earnings (Accumulated Deficit)
|
42 | 154 | ||||||
|
Accumulated
other comprehensive loss
|
(14 | ) | (6 | ) | ||||
|
Treasury
shares, at cost – 37,800 shares as of March 31, 2009; and September 30,
2009 respectively
|
(53 | ) | (53 | ) | ||||
|
Total
Highway Holdings Limited shareholders' equity
|
11,236 | 11,356 | ||||||
|
Non-controlling
interest
|
(20 | ) | 93 | |||||
|
Total
shareholders' equity
|
11,216 | 11,449 | ||||||
|
Total
liabilities and shareholders' equity
|
16,396 | $ | 17,811 | |||||