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 2010
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 ___
(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 ___ 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 the press releases issued by the registrant on
November 8, 2010 and November 9, 2010.
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, 2010
|
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 LIMITED DECLARES INTERIM CASH DIVIDEND
HONG KONG
– November 9,
2010
-- Highway Holdings
Limited (Nasdaq:HIHO) today announced its board of directors has
declared an interim cash dividend of $0.08 per share on the company’s common
stock. The
dividend will be paid on December 24, 2010 to shareholders of record on November
19, 2010.
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, with manufacturing facilities in
Shenzhen 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 STRONG FISCAL 2011 SECOND QUARTER RESULTS
Sales
Climb 50 Percent; Net Income Up Sharply
HONG KONG — November 8, 2010 — Highway Holdings
Limited (Nasdaq:HIHO)
today reported strong results for its second fiscal quarter ended
September 30, 2010, reflecting an improved business environment among its major
customers and new business gains.
Net
income for the 2011 fiscal second quarter increased to $410,000 or $0.11 per
diluted share, from $139,000, or $0.04 per diluted share, a year earlier. Net
sales for same period climbed 50 percent to $7.8 million from $5.2 million
a year earlier.
Net
income for the first half of fiscal 2011 was $ 454,000, or $0.12 per diluted
share, compared with net income of $3,000, or $0.00 per diluted share, a year
earlier. Net sales for the six-month period jumped 45.3 percent to $14.3
million from $9.8 million a year ago.
“Results
for the quarter and first half of fiscal 2011 reflect a greatly improved
business environment, with increased order flow from existing and new
customers,” said Roland Kohl, president and chief executive
officer.
Despite a
significant increase in both net sales and net income, Kohl stated that net
income could have been higher. He noted that operating income for the quarter
was $167,000, or approximately two percent of net sales, due to a 60
percent increase in labor costs, most of which had not yet been passed through
to customers under terms of existing contracts. Under terms of many of the
company’s OEM contracts, prices are adjusted quarterly to reflect increases in
raw material and employment costs. Kohl added that the company’s strong sales
gains for the quarter were not sufficient to offset these sharp labor and
personnel cost increases. “We anticipate operating income will improve in
future quarters as these higher labor costs are passed through as price
increases to our customers,” Kohl said. He said that prior initiatives
designed to reduce dependency on certain labor processes through assembly
automation and robotic manufacturing technology helped to partially offset the
higher labor costs in the quarter.
Kohl
noted further that investments in automation systems and the initial
start-up costs associated with manufacturing of a recently announced order for
protective mobile phone cases also impacted cost of sales, as well as selling
and general administrative expenses in the second quarter.
Highway
Holdings Ltd.
2-2-2
“Once
manufacturing of the protective
mobile cases ramps up and reaches projected levels, we will be better able to
absorb certain costs and realize better efficiency. This, combined with
projected higher sales, should contribute to enhanced profitability in the
second half,” Kohl said.
Selling,
general and administrative expenses increased to $1.43 million during the second
quarter from $1.22 million in same quarter a year ago. The increase in selling,
general and administrative expenses was the result of the increased costs
associated with adding managers and technicians necessary to service the
increased business -- in addition to the impact of higher wages paid to existing
personnel. Kohl noted that the company has now substantially completed its
consolidation of its factories in Ping Hu and He Yuan into its main facility in
Shenzhen, and that the company is presently in negotiations to sell the
company’s factory in Wuxi. These actions will contribute to further cost
reductions in the future.
The
company realized a currency exchange gain of $235,000 during the quarter, which
partially offset the $257,000 currency loss incurred in the first quarter of
this fiscal year – reflecting the weakening and strengthening value of
the Euro compared with the U.S. dollar. For the six-month period, the
company realized a currency exchange loss of $22,000 compared with a currency
exchange gain of $348,000 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 further increasing by approximately $800,000 to $7.8
million, or approximately $2.07 cash per share.
Current
liabilities at September 30, 2010 totaled $6.8 million and current assets were
$17.2 million. Total shareholders’ equity at September 30, 2010
was $11.9 million, or $ 3.15 per diluted share, compared with $11.7 million, or
$3.11 per diluted share, at March 31, 2010.
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, with manufacturing
facilities in Shenzhen 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,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Net
sales
|
$ | 7,836 | $ | 5,219 | $ | 14,287 | $ | 9,834 | ||||||||
|
Cost
of sales
|
6,240 | 3,904 | 11,259 | 7,776 | ||||||||||||
|
Gross
profit
|
1,596 | 1,315 | 3,028 | 2,058 | ||||||||||||
|
Selling,
general and administrative expenses
|
1,429 | 1,224 | 2,558 | 2,397 | ||||||||||||
|
Operating
income / (loss)
|
167 | 91 | 470 | (339 | ) | |||||||||||
|
Non-operating
items
|
||||||||||||||||
|
Interest
expenses
|
(10 | ) | (12 | ) | (18 | ) | (30 | ) | ||||||||
|
Exchange
gain (loss), net
|
235 | 67 | (22 | ) | 348 | |||||||||||
|
Interest
income
|
0 | 19 | 1 | 23 | ||||||||||||
|
Other
income
|
29 | 2 | 33 | 12 | ||||||||||||
|
Total
non-operating income (expenses)
|
254 | 76 | (6 | ) | 353 | |||||||||||
|
Net
income before income tax and non-controlling interest
|
421 | 167 | 464 | 14 | ||||||||||||
|
Income
taxes
|
19 | 0 | 32 | 0 | ||||||||||||
|
Net
Income before non-controlling interests
|
402 | 167 | 432 | 14 | ||||||||||||
|
Less:
Net income attributable to non-controlling interest
|
8 | (28 | ) | 22 | (11 | ) | ||||||||||
|
Net
Income attributable to Highway Holdings
Limited
|
$ | 410 | $ | 139 | $ | 454 | $ | 3 | ||||||||
|
Net
Income – basic and diluted
|
||||||||||||||||
|
Net Income
attributable to Highway Holdings
Limited
|
$ | 0.11 | $ | 0.04 | $ | 0.12 | $ | 0.00 | ||||||||
|
Weighted
average number of shares
|
||||||||||||||||
|
Basic
|
3,772 | 3,758 | 3,772 | 3,758 | ||||||||||||
|
Diluted
|
3,772 | 3,787 | 3,772 | 3,787 | ||||||||||||
HIGHWAY
HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated
Balance Sheet
(In
thousands, except per share data)
|
Sep
30
|
March
31
|
|||||||
|
2010
|
2010
|
|||||||
|
Current
assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 7,047 | $ | 6,279 | ||||
|
Restricted
cash
|
771 | 771 | ||||||
|
Accounts
receivable, net of doubtful accounts
|
3,971 | 3,240 | ||||||
|
Inventories
|
4,795 | 3,495 | ||||||
|
Prepaid
expenses and other current assets
|
643 | 507 | ||||||
|
Total
current assets
|
17,227 | 14,292 | ||||||
|
Property,
plant and equipment, (net)
|
2,173 | 2,051 | ||||||
|
Investment
in affiliates
|
1 | 1 | ||||||
|
Intangible
assets, (net)
|
0 | 8 | ||||||
|
Total
assets
|
$ | 19,401 | $ | 16,352 | ||||
|
Current liabilities:
|
||||||||
|
Accounts
payable
|
$ | 3,763 | $ | 2,389 | ||||
|
Short-term
borrowing
|
1,192 | 793 | ||||||
|
Current
portion of long-term debt
|
294 | 251 | ||||||
|
Accrual
payroll and employee benefits
|
712 | 542 | ||||||
|
Other
liabilities and accrued expenses
|
846 | 514 | ||||||
|
Total
current liabilities
|
6,807 | 4,489 | ||||||
|
Long-term
debt – net of current portion
|
638 | 44 | ||||||
|
Deferred
income taxes
|
147 | 147 | ||||||
|
Total
liabilities
|
7,592 | 4,680 | ||||||
|
Shareholders' equity:
|
||||||||
|
Common
shares, $0.01 par value
|
37 | 38 | ||||||
|
Additional
paid-in capital
|
11,243 | 11,289 | ||||||
|
Retained
earnings (Accumulated Deficit)
|
614 | 461 | ||||||
|
Accumulated
other comprehensive loss
|
(13 | ) | (13 | ) | ||||
|
Treasury
shares, at cost – 37,800 shares as of March 31, 2010; and September 30,
2010 respectively
|
0 | (53 | ) | |||||
|
Total
Highway Holdings Limited shareholders' equity
|
11,881 | 11,722 | ||||||
|
Non-controlling
interest
|
(72 | ) | (50 | ) | ||||
|
Total
shareholders' equity
|
11,809 | 11,672 | ||||||
|
Total
liabilities and shareholders' equity
|
$ | 19,401 | $ | 16,352 | ||||