Highway Holdings Ltd (NASDAQ: HIHO)

Highway Holdings Limited is a manufacturing company that produces a wide variety of high quality metal, plastic, and electronic components, subassemblies, and finished products for original equipment manufacturers. The company was founded in 1990 and began as a metal stamping operation in Hong Kong before moving its production to Shenzhen, China. Over time it expanded to include a facility in Yangon, Myanmar to handle labor intensive assembly. Its manufacturing capabilities cover metal stamping, screen printing, plastic injection molding, pad printing, and electronic assembly of printed circuit boards. The company operates primarily as a contract manufacturer serving OEMs in the office equipment, electronics, and appliance sectors.

The company generates revenue from the sale of manufactured components and from providing design, tooling, and engineering services to its customers. Sales are driven by original equipment manufacturers that integrate the parts into products such as photocopiers, laser printers, print cartridges, electrical connectors, vacuum cleaners, LED power supplies, stepping motors, and pumps for dishwashers. Geographic revenue shows a strong dependence on Europe, which accounted for 85.3% of net sales in the fiscal year ended March 31, 2025, while Asia and North America contributed smaller shares. The company also reports sales by 2 business segments, with the metal stamping and mechanical OEM segment representing 60.7% of sales and the electric OEM segment representing 39.3% in the same period.

The company operates through the following segments: Metal Stamping and Mechanical OEM, and Electric OEM.

• Metal Stamping and Mechanical OEM: This segment performs metal stamping, mechanical component fabrication, tooling design and production, screen printing, and plastic injection molding. It supplies parts such as metal brackets, gears, and housings that are used in office machines and home appliances. The segment also provides prototyping and low volume production runs for customers needing custom metal parts.

• Electric OEM: This segment handles electronic assembly, printed circuit board fabrication, and plastic component production for electronic devices. It produces items such as power supplies, motor controllers, sensors, and connectors that are incorporated into products like printers and vacuum cleaners. The segment also offers design support for circuitry and helps customers with component selection and layout.

Within the competitive contract manufacturing industry, Highway Holdings Limited differentiates itself through a German management culture that emphasizes precision and quality, and through its vertically integrated model that combines design, tooling, and production under 1 roof. The company holds ISO 9001 and ISO 14001 certifications, which support its reputation for consistent product quality and environmental management. These strengths enable it to compete on the basis of high quality, reliable delivery, and competitive pricing against both local Chinese manufacturers and larger global contract makers.

The company serves a customer base consisting primarily of European original equipment manufacturers, with additional customers in Asia and North America. Its products are used by manufacturers of office equipment, communications gear, and household appliances. Although the customer list is not disclosed in the filing, the company notes that a small number of large accounts generate a substantial portion of its sales, with 3 customers each exceeding 10% of revenue in the fiscal year ended March 31, 2025. This concentration means that the success of the business is closely tied to the continued demand from these key accounts.