HIGHWAY HOLDINGS RESTATES UNAUDITED FINANCIAL STATEMENTS FOR 3 AND 9 MONTHS ENDED DECEMBER 31, 2023 RESULTING IN HIGHER NET INCOME FOR BOTH PERIODS
Investors should no longer rely upon the previously released financial statements cited above. Similarly, any other press releases and investor communications containing information derived from such financial statements should no longer be relied upon.
The Company has concluded that the interim financial statements cannot be relied upon due to the misapplication of a revenue recognition accounting standard following a change in inventory fulfillment and transfer procedures by one of the Company's customers. The inventory adjustment resulted in the erroneous inclusion of
The adjustments to net sales and other line items resulting from the changed inventory transfer policies resulted in an increase in net income for the third quarter of fiscal year 2024 from
Today's announcement reiterates
About Highway Holdings
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, and other factors discussed in the company's various filings with the
(Financial Tables Follow)
HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES |
||||||||||
Consolidated Statement of Income |
||||||||||
(Dollars in thousands, except per share data) |
||||||||||
(Unaudited) |
||||||||||
|
|
|
|
|
||||||
|
Three Months Ended |
|
Nine Months Ended |
|
||||||
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
||
|
20 23 Announced |
|
2023 Restated |
|
20 23 Announced |
|
20 23 Restated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
|
|
|
|
|
|
|
Cost of sales |
3,231 |
|
1,310 |
|
5,140 |
|
3,219 |
|
|
|
Gross profit |
876 |
|
922 |
|
1,636 |
|
1,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
679 |
|
679 |
|
1,728 |
|
1,728 |
|
|
|
Operating income /(loss) |
197 |
|
243 |
|
(92) |
|
(46) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating items |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange gain / (loss) , net |
27 |
|
27 |
|
58 |
|
58 |
|
|
|
Interest income |
63 |
|
63 |
|
156 |
|
156 |
|
||
Gain/(Loss) on disposal of Asset |
3 |
|
3 |
|
16 |
|
16 |
|
|
|
Other income /(expenses) |
8 |
|
8 |
|
14 |
|
14 |
|
|
|
Total non-operating income/ (expenses) |
101 |
|
101 |
|
244 |
|
244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income before income tax and non-controlling interest s |
298 |
|
344 |
|
152 |
|
198 |
|
|
|
Income taxes |
1 |
|
1 |
|
7 |
|
7 |
|
|
|
Net income before non-controlling interests |
299 |
|
345 |
|
159 |
|
205 |
|
|
|
Net loss attributable to non-controlling interests |
3 |
|
3 |
|
18 |
|
18 |
|
|
|
Net i ncome attributable to Highway Holdings Limited 's shareholders |
302 |
|
348 |
|
177 |
|
223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Gain/ (loss) per share – Basic
|
|
|
|
|
|
|
|
|
|
|
Net Gain/ (loss) per share - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
|
|
Basic |
4,386 |
|
4,386 |
|
4,314 |
|
4,314 |
|
|
|
Diluted |
4,396 |
|
4,396 |
|
4,323 |
|
4,323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES |
|||
Consolidated Balance Sheet |
|||
(Dollars in thousands, except per share data) |
|||
|
|
|
|
|
|
|
Dec 31 |
|
20 23 Announced |
|
20 2 3 Restated |
|
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
|
|
|
Accounts receivable, net of doubtful accounts |
3,533 |
|
1,658 |
Inventories |
1,812 |
|
1,858 |
Prepaid expenses and other current assets |
200 |
|
200 |
Income tax recoverable |
- |
|
- |
Total current assets |
11,731 |
|
9,902 |
|
|
|
|
Property, plant and equipment, (net) |
379 |
|
379 |
Operating lease right-of-use assets |
2,004 |
|
2,004 |
Long-term deposits |
205 |
|
205 |
Long-term loan receivable |
95 |
|
95 |
Investments in equity method investees |
- |
|
- |
Total assets |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
|
|
|
Operating lease liabilities, current |
586 |
|
586 |
Other liabilities and accrued expenses |
1,845 |
|
1,845 |
Income tax payable |
551 |
|
551 |
Dividend payable |
46 |
|
46 |
Total current liabilities |
5,505 |
|
3,630 |
|
|
|
|
Long term liabilities: |
|
|
|
Operating lease liabilities, non-current |
1,013 |
|
1,013 |
Deferred income taxes |
98 |
|
98 |
Long terms accrued expenses |
17 |
|
17 |
Total liabilities |
6,633 |
|
4,758 |
|
|
|
|
Shareholders' equity: |
|
|
|
Preferred shares, |
- |
|
- |
Common shares, |
44 |
|
44 |
Additional paid-in capital |
12,140 |
|
12,140 |
Accumulated deficit |
(3,879) |
|
(3,833) |
Accumulated other comprehensive income /(loss) |
(517) |
|
(517) |
Non-controlling interest |
(7) |
|
(7) |
Total shareholders' equity |
7,781 |
|
7,827 |
|
|
|
|
Total liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE