HIGHWAY HOLDINGS REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Financial Highlights – Fiscal Full Year 2025 Compared to Fiscal Full Year 2024:

— Revenue Increases 17.5% YoY

— Gross Profit Increases 47% YoY

— Returns to Full Year Profitability

Highway Holdings Limited (Nasdaq: HIHO) today reported results for the fiscal fourth quarter and fiscal year ended March 31, 2025.The Company notes that while its financial results continue to reflect the lasting impact of COVID-19 and its aftermath, it was able to achieve improvements in revenue and profitability for the fiscal full year 2025 compared to the fiscal full year 2024.

For the fiscal 2025 fourth quarter, net sales were $1.5 million compared to $1.4 million in the year ago period, reflecting the ongoing negative impact of the COVID-19 pandemic and subsequent boom and bust period, which led to a sudden reduction in sales and inventory imbalance at the Company's customers and a material decline in new orders. Gross profit was $305,000 compared to $26,000 in the year ago period. Net loss for the fiscal 2025 fourth quarter was $315,000, or $0.07 per diluted share, compared to a net loss of $1.2 million, or $0.26 per diluted share in the year ago period.

Net sales for the fiscal year 2025 were $7.4 million compared to $6.3 million for the fiscal year 2024, reflecting the above noted negative impact of the COVID-19 pandemic. Gross profit for the fiscal year 2025 was $2.5 million with a gross margin of 33%, compared to $1.7 million and 27% percent for the fiscal year 2024. Net income for the fiscal year 2025 was$106,000,or $0.02per diluted share, compared with a net loss of $959,000,or $0.22 per diluted share, in the fiscal year 2024.

Roland Kohl, chairman, president and chief executive officer of Highway Holdings, said, “The lasting impacts of COVID-19 and its aftermath, along with ongoing geopolitical challenges, including the ongoing Ukraine-Russia war and the U.S.-China trade war with business damaging tariffs, have kept our traditional OEM business under pressure as most of our customers' businesses remain significantly weaker than pre-pandemic levels. Recovery has been affected by the multiple headwinds with business softer as many customers are still searching for a path to sustainable recovery. We have remained focused during this challenging period and were able to achieve some progress with growth in revenue and profitability for the fiscal full year 2025 compared to the fiscal full year 2024.”

“Recognizing this business reality, we have been actively pursuing new growth avenues both organically and through strategic acquisitions. For example, we slowed down the M&A process with Synova since it was also impacted by the negative headwinds but we pivoted to due diligence on other opportunities. We believe that in this difficult time it is actually the best opportunity to find new OEM business. This all takes time, however, being conservative in all our approaches resulted in our still strong financial position with total equity of $6.3 million as of March 31, 2025, representing approximately $1.42 per diluted share, giving us the financial strength to best position the company for growth. With a strengthened Board and getting younger managers involved in the company's decision making, we believe 2025 will mark the beginning of a new lease on life for the company.”

The company reported a $124,000 currency exchange gain for the fiscal year 2025 compared with a $198,000 currency exchange gain in the fiscal year 2024. The currency exchange gain in the current year was mainly due to the weakened Kyat. 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.

The Company's cash balance at March 31, 2025 was approximately $6 million, or approximately $1.36 per diluted share. Total current assets at March 31, 2025, were $8.6 million, with working capital of $5.5 million and a current ratio of 2.8:1

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 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, the political situation in Myanmar, relations between the U.S. and China, 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)

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Consolidated Statement of IncomeHIGHWAY HOLDINGS LIMITED AND SUBSIDIARIESConsolidated Statement of Income(Dollars in thousands, except per share data) Three Months Ended Year Ended March 31, March 31, (Unaudited) (Audited) 2025 2024 2025 2024Net sales $1,487 $1,420 $7,412 $6,321Cost of sales 1,182 1,394 4,942 4,613Gross profit 305 26 2,470 1,708Selling, general and administrative expenses 957 749 3,005 2,477Impairment of property, plant and equipment – 335 – 335Impairment of operating lease right of use assets – 572 – 527Operating income/(loss) (652) (1,585) (535) (1,631)Non-operating itemsExchange gain/(loss), net (20) 140 124 198Interest income 56 92 203 248Gain on disposal of assets 333 14 333 16Other income 6 2 22 30Total non-operating income / (expenses) 375 248 682 492Share of profits / (loss) of equity investee – – – -Net income/(loss) before income tax and non- (277) (1,337) 147 (1,139)controlling InterestIncome taxes (38) 154 (38) 161Net income/(loss) before non-controlling interests (315) (1,183) 109 (978)Less: Net gain / (loss) attributable to non- 0 (1) (3) (19)controlling InterestsNet income/(loss) attributable to Highway ($315) ($1,182) $106 ($959)Holdings Limited shareholdersNet income/(loss) per share:Basic ($0.07) ($0.26) $0.02 ($0.22)Diluted ($0.07) ($0.26) $0.02 ($0.22)Weighted average number of shares outstanding:Basic 4,402 4,474 4,402 4,373Diluted 4,402 4,474 4,402 4,373

HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIESConsolidated Balance Sheet(In thousands, except per share data) March 31, March 31, 2025 2024Current assets:Cash and cash equivalents $5,972 $6,601Accounts receivable, net of doubtful accounts 1,022 1,253Inventories 1,146 1,566Prepaid expenses and other current assets 430 226Income tax recoverable – -Total current assets 8,570 9,646Property, plant, and equipment, (net) 94 -Operating lease right-of-use assets 784 1,375Long-term deposits 11 202Long-term loan receivable 95 95Investments in equity method investees – -Total assets $9,554 $11,318Current liabilities:Accounts payable $613 $935Operating lease liabilities, current 630 588Accrual expenses and other liabilities 1,274 1,789Income tax payable 486 480Dividend payable 81 45Total current liabilities 3,084 3,837Long term liabilities:Operating lease liabilities, non-current 180 803Deferred income taxes – -Long term accrued expenses 23 40Total liabilities 3,287 4,680Shareholders' equity:Preferred shares, $0.01 par value – -Common shares, $0.01 par value 44 41Additional paid-in capital 12,178 12,117Accumulated deficit (5,437) (5,015)Accumulated other comprehensive income /(loss) (516) (501)Non-controlling interest (2) (7)Total equity 6,267 6,638Total liabilities and shareholders' equity $9,554 $11,318

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SOURCE Highway Holdings Limited

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