Business
HIGHWAY HOLDINGS REPORTS FISCAL FOURTH QUARTER AND FULL YEAR 2023 RESULTS
HONG KONG, July 13, 2023 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO) today reported results for the fiscal fourth quarter and fiscal year ended
About this update from Highway Holdings Limited
[{"type":"text","content":"HONG KONG, July 13, 2023 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO) today reported results for the fiscal fourth quarter and fiscal year ended March 31, 2023, which reflect the adverse impact of the sudden lifting of COVID-19 restrictions in China and the lingering negative impact on the Company's business and sales. The Company noted financial results are not comparable with results from prior years, as ongoing business uncertainties required it to take multiple provision charges, while prior periods separately benefited from non-recurring subsidies.\nFor the fiscal 2023 fourth quarter, net sales were $1.7 million compared to $3.0 million in the year ago period, reflecting the negative impact of the COVID-19 pandemic, including manufacturing, customer and supply chain restrictions and closures, unpredictability in ordering patterns and sickness of substantially all employees in China caused by the sudden lifting of all COVID-19 restrictions followed by the annual Chinese New Year Holidays, which resulted in reduced production operations and shutdowns for about one month at the Company's Shenzhen, China factory. Gross profit was $0.26 million, compared to $0.89 million in the year ago period. Net loss for the fiscal 2023 fourth quarter was $1.13 million, or $0.28 per diluted share, compared to a net loss of $0.369 million or $0.09 per diluted share in the year ago period.\nNet sales for fiscal year 2023 were $10.2 million compared to $12.4 million for the fiscal year 2022, reflecting the above noted negative impact of the COVID-19 pandemic. Gross profit for the fiscal year 2023 was $3.1 million with a gross margin of 30.7%, compared to $3.8 million and 30.4% percent for the fiscal year 2022. Net loss for fiscal 2023 was $294,000, or $0.07 per diluted share, compared with a net gain of $443,000, or $0.11 per diluted share, a year earlier.\nRoland Kohl, chairman, president and chief executive officer of Highway Holdings, said, \"The decrease in sales for fiscal 2023, including the fourth quarter, was mainly a result of the complex business situation caused by the global impact of COVID-19, which caused numerous challenges in the supply chain, logistics, and our business operations, including reduced production operations and shutdowns. During the multiple years of the COVID-19 pandemic and lockdowns, hidden behind all...