HIGHWAY HOLDINGS REPORTS FISCAL YEAR 2025 THIRD QUARTER AND NINE MONTH RESULTS

21% YoY Increase in Revenue for the Fiscal Year 2025 Nine Months , /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO) (the "Company" or "Highway Holdings") today reported financial results for its fiscal third quarter 2025 and fiscal nine months ended December 31, 2024, with a 21% increase in revenue and a $0.05 increase in diluted earnings per share for the nine months results of fiscal year 2025, compared to the year ago period. Net revenue for the third quarter of fiscal year 2025 decreased 13.5% to $1.9 million compared with $2.2 million in the year ago period. Net income for the third quarter of fiscal year 2025 decreased to $92,000, or $0.02 per diluted share, compared with $348,000 or $0.08 per diluted share in the year ago period. Net revenue for the first nine months of fiscal year 2025 increased 21% to $5.9 million, compared with $4.9 million in the year ago period. Net income for the first nine months of 2025 was $421,000, or $0.1 per diluted share, compared with a net income of $223,000, or $0.05 per diluted share for the year ago period. Roland Kohl, chairman, president and chief executive officer of Highway Holdings, said, "While our revenue growth was healthy for the first nine months of fiscal year 2025, the overall near-term situation remains generally challenged as previously reported. Being an OEM manufacturer, we depend on the business health and quality of our customers. We are seeing some encouraging signs at specific customers, but the broader rebound has been slowed by the uncertain macro environment, following the fallout of COVID, as orders for customer products have been adversely impacted by the Russia/Ukraine war, the conflict in the Middle East, and uncertainty around potential policy changes from the incoming new administration in the U.S. It remains to be seen how much of the uncertainty and paused demand will be short-term in nature." "Longer-term, we see market changes as a positive and a better option than being stuck in neutral. We are optimistic and focused on leveraging the company's strengths, customer relationships, highly valued experience and healthy financial position to benefit from the eventual uptick in demand and build value for shareholders. As noted last quarter, as part of our business growth strategy, we are evaluating numerous possible ventures, which could substantially improve the Company's future. This includes diligently working a new restructured deal with Synova to reflect the significantly changed market situation. We are separately evaluating other potential strategic transactions regarding both direct and indirect manufacturing outside of Asia which may benefit our company and our customers. Lastly, we are working diligently on creating a new second line of business to help drive growth and diversification. We are confident that with our present efforts we will be less reliant on the business health our customers. In this respect, we are cautiously optimistic that the company is on the right track for a better future as we continue to build on our track record of success over the long-term." Select Additional Financial Results: Gross margin for the third quarter of fiscal year 2025 was 34 percent, compared to 41 percent in the year ago period, mainly reflecting the impact of a different product mix with various margin levels particularly for a large game console customer. Gross margin for the first nine months of fiscal year 2025 increased 250 basis points to 36.5 percent, compared to 34 percent in the year ago period, with the improvement led by higher revenue and slight rebound in utilization levels. The Company reported a $144,000 currency exchange gain for the first nine months of fiscal year 2025, compared with a $58,000 currency exchange gain in the year ago period, primarily due to the weakening of the Chinese RMB and Myanmar Kyat. The Company does not engage in currency exchange rate hedging, and the fluctuation in the exchange rate of the RMB and Kyat are expected to affect the Company's future results. The Company's balance of cash at December 31, 2024 was approximately $5.2 million, or a balance of cash of approximately $1.19 per diluted share. The Company's current ratio was 2.56:1 at December 31, 2024. About Highway Holdings Highway Holdings is an international manufacturer of a wide variety of quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative offices are located in Hong Kong and its manufacturing facilities are located in Yangon, Myanmar and Shenzhen, China. For more information visit website www.highwayholdings.com. 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 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 Nine Months Ended December 31, December 31, 2024 2023 2024 2023 Net sales $1,929 $2,232 $5,925 $4,901 Cost of sales 1,259 1,310 3,760 3,219 Gross profit 670 922 2,165 1,682 Selling, general and administrative expenses 666 679 2,048 1,728 Operating income 4 243 117 (46) Non-operating items Exchange gain /(loss), net 48 27 144 58 Interest income 44 63 147 156 Gain/(Loss) on disposal of assets - 3 - 16 Other income/(expenses) 4 8 16 14 Total non-operating income/ (expenses) 96 101 307 244 Net income before income tax and non-controlling interests 100 344 424 198 Income taxes - 1 - 7 Net income before non-controlling interests 100 345 424 205 Less: net gain attributable to non-controlling interests (8) 3 (3) 18 Net income attributable to Highway Holdings Limited's shareholders 92 348 421 223 Net Gain/ (loss) per share – Basic $0.02 $0.08 $0.10 $0.05 Net Gain/ (loss) per share - Diluted $0.02 $0.08 $0.10 $0.05 Weighted average number of shares outstanding Basic 4,402 4,386 4,398 4,314 Diluted 4,402 4,396 4,398 4,323 HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES Consolidated Balance Sheet (Dollars in thousands, except per share data) (unaudited) Dec 31, (audited) Mar 31, 2024 2024 Current assets: Cash and cash equivalents $5,235 $6,601 Accounts receivable, net of doubtful accounts 1,959 1,253 Inventories 1,469 1,566 Prepaid expenses and other current assets 402 226 Total current assets 9,065 9,646 Property, plant and equipment, (net) 53 - Operating lease right-of-use assets 1,012 1,375 Long-term deposits 206 202 Long-term loan receivable 95 95 Investments in equity method investees - - Total assets $10,431 $11,318 Current liabilities: Accounts payable $953 $935 Operating lease liabilities, current 633 588 Other liabilities and accrued expenses 1,402 1,789 Income tax payable 490 480 Dividend payable 67 45 Total current liabilities 3,545 3,837 Long term liabilities: Operating lease liabilities, non-current 351 803 Long term accrued expenses 40 40 Total liabilities 3,936 4,680 Shareholders' equity: Preferred shares, $0.01 par value - - Common shares, $0.01 par value 44 44 Additional paid-in capital 12,169 12,117 Accumulated deficit (5,124) (5,015) Accumulated other comprehensive income/(loss) (590) (501) Non-controlling interest (4) (7) Total shareholders' equity 6,495 6,638 Total liabilities and shareholders' equity $10,431 $11,318 SOURCE Highway Holdings Limited WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

HIGHWAY HOLDINGS REPORTS FISCAL YEAR 2025 THIRD QUARTER AND NINE MONTH RESULTS

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