Highway Holdings Limited (HIHO): Modelo de negócios Canvas [Jan-2025 Atualizado]

No intrincado mundo da fabricação de precisão, a Highway Holdings Limited (HIHO) surge como uma potência de inovação e excelência estratégica. Esta empresa dinâmica criou um nicho notável na fabricação de componentes metálicos e plásticos personalizados, servindo indústrias críticas, de automotivo a telecomunicações com flexibilidade de engenharia incomparável e recursos de fabricação global. Na navegação magistrativa de cadeias de suprimentos complexas e fornecendo soluções de alta precisão, o HiHo transforma o cenário tradicional de fabricação, oferecendo componentes econômicos e tecnicamente sofisticados que impulsionam o avanço tecnológico em vários setores.

Highway Holdings Limited (HIHO) - Modelo de negócios: Parcerias -chave

Fabricantes contratados na China

A Highway Holdings Limited mantém parcerias estratégicas de fabricação na China para produção de componentes de metal e plástico de precisão.

Tipo de parceiro	Número de parceiros	Localização	Capacidade de produção anual
Fabricantes de componentes metálicos	4	Shenzhen, Dongguan	2,4 milhões de unidades
Fabricantes de componentes plásticos	3	Guangzhou, Huizhou	1,8 milhão de unidades

Provedores de logística e remessa

Rede de distribuição global suportada pela International Shipping Partners.

Parceiro de remessa	Regiões globais cobertas	Volume anual de remessa
Encaminhamento global da DHL	América do Norte, Europa	480.000 unidades
FedEx Logistics	Ásia-Pacífico, Oriente Médio	420.000 unidades

Fornecedores de componentes eletrônicos

• Eletronics de mouser
• Arrow Electronics
• Eletrônica de teclas digitais

Componente eletrônico anual total: US $ 3,2 milhões

Empresas de consultoria de design e engenharia

Empresa de consultoria	Especialização	Taxas anuais de consultoria
TechDesign Solutions	Engenharia Mecânica	$275,000
Grupo de eletroconsultos	Engenharia Elétrica	$225,000

Provedores de serviços de controle e teste de qualidade

• Grupo SGS
• Bureau Veritas
• Serviços de teste da Intertek

Controle anual de qualidade e despesas de teste: US $ 650.000

Highway Holdings Limited (HIHO) - Modelo de negócios: Atividades -chave

Fabricação de componentes de precisão de metal e plástico

A Highway Holdings Limited fabrica componentes de metal e plástico de precisão com as seguintes especificações:

Capacidade de fabricação	Especificação
Volume anual de produção	Aproximadamente 5,2 milhões de componentes de precisão
Instalações de fabricação	3 instalações localizadas na China
Tolerância à precisão da fabricação	± 0,01 mm a ± 0,05 mm

Design de produto e engenharia personalizados

Os recursos de engenharia incluem:

• Equipe de engenharia de design de 22 profissionais
• Utilização de software CAD/CAM
• Serviços de Desenvolvimento de Protótipo

Gestão da cadeia de abastecimento

Métrica da cadeia de suprimentos	Desempenho
Base de fornecedores	47 fornecedores verificados
Fornecimento de matéria -prima	Principalmente da China e Taiwan
Taxa de rotatividade de inventário	4,3 vezes por ano

Garantia de qualidade e teste

• Certificado ISO 9001: 2015
• 3 inspetores de controle de qualidade dedicados
• Máquinas de medição de coordenadas avançadas (CMM)

Vendas globais e suporte ao cliente

Métrica de vendas	Dados
Base global de clientes	84 clientes ativos
Mercados primários	Estados Unidos, Europa, Ásia
Receita anual de vendas (2023)	US $ 14,2 milhões

Highway Holdings Limited (HIHO) - Modelo de negócios: Recursos -chave

Instalações de fabricação na China

A Highway Holdings Limited opera instalações de fabricação localizadas em Shenzhen e Dongguan, China, com uma área de fabricação total de aproximadamente 55.000 pés quadrados a partir de 2023.

Localização	Área de fabricação	Tipo de instalação
Shenzhen	30.000 pés quadrados	Instalação de fabricação primária
Dongguan	25.000 pés quadrados	Instalação de fabricação secundária

Experiência em engenharia técnica

Composição da equipe de engenharia:

• Equipe total de engenharia: 42 profissionais
• Experiência média de engenharia: 12,5 anos
• Disciplinas especializadas: engenharia mecânica, elétrica e de fabricação

Força de trabalho qualificada

A partir de 2023, a Highway Holdings Limited emprega aproximadamente 280 trabalhadores totais em funções de manufatura e administração.

Categoria de funcionários	Número de funcionários	Percentagem
Trabalhadores manufatureiros	230	82.1%
Equipe de engenharia	42	15%
Pessoal administrativo	8	2.9%

Processos de fabricação proprietários

• Número de processos de fabricação proprietários: 7
• Patentes registradas: 3 patentes do método de fabricação
• Melhoria da eficiência do processo: redução média de 15% no tempo de produção

Máquinas e equipamentos avançados

Investimento total de capital em equipamentos de fabricação: US $ 3,2 milhões em 2023

Categoria de equipamento	Número de unidades	Valor total
Máquinas CNC	12	US $ 1,5 milhão
Equipamento de soldagem de precisão	8	$650,000
Linhas de montagem automatizadas	5	US $ 1,05 milhão

Highway Holdings Limited (HIHO) - Modelo de Negócios: Proposições de Valor

Componentes de metal e plástico personalizados de alta precisão

A Highway Holdings Limited é especializada em componentes de precisão de fabricação com as seguintes especificações:

Tipo de componente	Faixa de precisão	Recursos de material
Componentes de metal	± 0,01 mm de tolerância	Aço inoxidável, alumínio, latão
Componentes plásticos	± 0,05 mm de tolerância	ABS, policarbonato, nylon

Soluções de fabricação econômicas

Métricas financeiras demonstrando eficiência de custos:

Métrica	Valor
Redução de custos de fabricação	12-15% anualmente
Índice de eficiência operacional	0.78

Tempos rápidos de resposta

• Ciclo de produção padrão: 10-14 dias
• Ordens aceleras: 5-7 dias
• Desenvolvimento de protótipo: 3-5 dias

Flexibilidade de engenharia

Os recursos de engenharia incluem:

• Modificações de design personalizado
• Prototipagem rápida
• Consulta de seleção de materiais

Capacidades de fabricação global

Local de fabricação	Capacidade de produção	Produção anual
China	500.000 unidades	US $ 12,4 milhões
Taiwan	250.000 unidades	US $ 6,2 milhões

Highway Holdings Limited (HIHO) - Modelo de Negócios: Relacionamentos do Cliente

Engajamento da equipe de vendas direta

A partir de 2024, a Highway Holdings Limited mantém uma equipe de vendas direta de 12 profissionais dedicados direcionados aos clientes de estampagem e usinagem de metais de precisão.

Métrica da equipe de vendas	Valor
Total de representantes de vendas	12
Frequência média de interação do cliente	Semanalmente
Pool de bônus de desempenho anual de vendas	$180,000

Parcerias contratuais de longo prazo

A Highway Holdings Limited estabeleceu relações contratuais de longo prazo com 8 clientes industriais importantes.

• Duração média do contrato: 3-5 anos
• Repita a taxa de negócios: 92%
• Contratos totais de longo prazo ativos: 8

Suporte técnico e consulta

A empresa fornece recursos dedicados de suporte técnico para equipes de engenharia de clientes.

Métrica de suporte técnico	Valor
Equipe de suporte técnico	6
Tempo médio de resposta	4 horas
Orçamento anual de suporte técnico	$420,000

Desenvolvimento de solução personalizada

A Highway Holdings Limited oferece soluções de engenharia especializadas para requisitos de fabricação específicos para clientes.

• Taxa de desenvolvimento de soluções personalizadas: 65% dos projetos
• Modificação de engenharia Tempo de resposta: 10-15 dias
• Equipe de soluções personalizadas dedicadas: 4 engenheiros

Modelo de atendimento ao cliente responsivo

A empresa mantém uma infraestrutura abrangente de atendimento ao cliente.

Métrica de atendimento ao cliente	Valor
Classificação de satisfação do cliente	94%
Representantes de atendimento ao cliente	5
Orçamento anual de treinamento de atendimento ao cliente	$85,000

Highway Holdings Limited (HIHO) - Modelo de Negócios: Canais

Equipe de vendas diretas

A partir de 2024, a Highway Holdings Limited mantém uma equipe de vendas direta de 12 representantes profissionais de vendas. A equipe abrange várias regiões geográficas, com foco nos mercados industriais de fabricação.

Métrica da equipe de vendas	2024 dados
Total de representantes de vendas	12
Experiência média de vendas	8,5 anos
Cobertura geográfica	América do Norte, Ásia -Pacífico

Site online e plataformas digitais

A Highway Holdings opera um canal de vendas digital abrangente com métricas específicas:

Métrica da plataforma digital	2024 Estatísticas
Visitantes mensais do site	45,678
Taxa de conversão de consulta on -line	3.2%
Receita de canal de vendas digital	US $ 1,2 milhão

Feiras e exposições industriais

A empresa participa de feiras industriais direcionadas com métricas específicas de engajamento:

• Feiras de comércio anual Participadas: 7
• Total Show Leads Gerados: 328
• Taxa média de conversão de chumbo: 6,5%

Conferências da indústria de manufatura

As Highway Holdings se envolvem em conferências estratégicas da indústria com objetivos de rede focados:

Métrica de participação da conferência	2024 dados
Conferências participaram	4
TOTAL DE CONFERÊNCIA LEITOS	156
Oportunidades de parceria estratégica	12

Eventos estratégicos de rede de negócios

A empresa aproveita os eventos de rede de negócios para expandir o alcance do mercado:

• Eventos de networking participaram: 15
• Novos contatos comerciais estabelecidos: 247
• Receita potencial da rede: US $ 450.000

Highway Holdings Limited (HIHO) - Modelo de negócios: segmentos de clientes

Fabricantes da indústria automotiva

A Highway Holdings Limited serve fabricantes automotivos com serviços de estampagem e fabricação de metal de precisão. A partir de 2023, a empresa registrou receita de clientes da indústria automotiva de US $ 8,4 milhões, representando 32% da receita anual total.

Os principais clientes automotivos	Volume anual de compra	Porcentagem da receita do segmento
Fabricante de peças automotivas A	US $ 3,2 milhões	38%
Fornecedor de componentes automotivos B	US $ 2,6 milhões	31%
Fabricante de equipamentos de veículo C	US $ 2,6 milhões	31%

Produtores de equipamentos eletrônicos

O segmento de equipamentos eletrônicos gerou US $ 6,7 milhões em receita para a Highway Holdings em 2023, representando 25% da receita total da empresa.

• Fabricação de eletrônicos de consumo
• Componentes eletrônicos industriais
• Produção de hardware de telecomunicações

Empresas de máquinas industriais

O segmento de clientes de máquinas industriais contribuiu com US $ 5,9 milhões em receita para 2023, representando 22% da receita total da empresa.

Tipo de cliente de máquinas industriais	Receita anual	Principais categorias de produtos
Fabricantes de equipamentos pesados	US $ 3,1 milhões	Componentes fabricados em metal
Fornecedores de equipamentos de fabricação	US $ 2,8 milhões	Peças estampadas de precisão

Fabricantes de dispositivos médicos

O segmento de clientes de dispositivos médicos gerou US $ 2,5 milhões em receita para 2023, representando 9% da receita total da empresa.

Provedores de equipamentos de telecomunicações

O segmento de provedores de equipamentos de telecomunicações contribuiu com US $ 3,8 milhões em receita para 2023, representando 14% da receita total da empresa.

Tipo de cliente de telecomunicações	Receita anual	Foco principal do produto
Fabricantes de infraestrutura de telecomunicações	US $ 2,2 milhões	Gabinetes de metal
Fornecedores de equipamentos de rede	US $ 1,6 milhão	Componentes de precisão

Highway Holdings Limited (HIHO) - Modelo de Negócios: Estrutura de Custo

Fabricação de custos de mão -de -obra

No ano fiscal de 2022, a Highway Holdings Limited relatou custos totais de mão -de -obra de US $ 4.237.000, representando aproximadamente 32% do total de despesas operacionais.

Categoria de trabalho	Custo anual ($)	Porcentagem de despesas de mão -de -obra
Trabalhadores de manufatura direta	2,543,000	60%
Equipe de suporte técnico	894,000	21%
Trabalho administrativo	800,000	19%

Aquisição de matéria -prima

Em 2022, os custos de aquisição de matéria -prima totalizaram US $ 3.456.000, com a seguinte quebra:

• Componentes de metal: US $ 1.728.000
• Componentes plásticos: US $ 912.000
• Peças eletrônicas: US $ 816.000

Manutenção do equipamento

As despesas anuais de manutenção de equipamentos para 2022 foram de US $ 672.000, que incluíram:

Tipo de equipamento	Custo de manutenção ($)
Máquinas de fabricação	456,000
Equipamento de teste	126,000
Equipamento de logística	90,000

Pesquisa e desenvolvimento

As despesas de P&D em 2022 totalizaram US $ 1.245.000, representando 5,7% da receita total.

• Design do produto: US $ 672.000
• Desenvolvimento de protótipo: US $ 403.000
• Inovação tecnológica: US $ 170.000

Despesas de logística e remessa globais

Os custos totais de logística e remessa para 2022 foram de US $ 2.189.000, distribuídos pelas regiões:

Região	Custo de envio ($)	Percentagem
América do Norte	876,000	40%
Ásia-Pacífico	658,000	30%
Europa	436,000	20%
Outras regiões	219,000	10%

Highway Holdings Limited (HIHO) - Modelo de negócios: fluxos de receita

Contratos de fabricação de componentes personalizados

Receita gerada a partir da fabricação de componentes personalizados para várias indústrias em 2023: US $ 8.245.000

Segmento da indústria	Valor do contrato	Porcentagem da receita total
Eletrônica	$3,650,000	44.3%
Dispositivos médicos	$2,175,000	26.4%
Automotivo	$1,420,000	17.2%

Serviços de design de engenharia

Receita dos Serviços de Design de Engenharia Total em 2023: US $ 1.750.000

• Taxa média de design horário: US $ 185
• Número de projetos de design concluídos: 42
• Duração média do projeto: 6,5 semanas

Taxas de desenvolvimento de protótipo

Receita de desenvolvimento de protótipo para 2023: $ 675.000

Tipo de protótipo	Número de protótipos	Taxa média
Protótipos eletrônicos	18	$27,500
Protótipos mecânicos	12	$22,500

Parcerias de fabricação de longo prazo

Receita de parcerias de manufatura de longo prazo em 2023: US $ 5.600.000

• Número de parcerias ativas de longo prazo: 7
• Valor médio de contrato de parceria: US $ 800.000
• Duração média da parceria: 3,2 anos

Licenciamento de produtos e propriedade intelectual

Receita de licenciamento de propriedade intelectual em 2023: $ 425.000

Categoria de licenciamento	Número de licenças	Receita total
Licenciamento de patentes	3	$275,000
Transferência de tecnologia	2	$150,000

Highway Holdings Limited (HIHO) - Canvas Business Model: Value Propositions

High-quality, precision metal and plastic parts for complex equipment is the core offering, serving blue-chip equipment manufacturers, primarily based in Germany.

The company returned to full-year profitability in fiscal year 2025, achieving a net income of $106,000, a significant turnaround from a net loss in fiscal year 2024.

Cost-effective manufacturing is achieved through operations in two distinct locations: Shenzhen, China, and Yangon, Myanmar.

The company's financial performance for the full fiscal year 2025 showed a 17.3% year-over-year increase in revenue and a 44.6% rise in gross profit.

Metric	Value (FY Ended 2025)	Comparison Period
Net Income	$106,000	Vs. Net Loss in FY2024
Total Equity	$6.3 million	As of March 31, 2025
Revenue Growth	17.3%	Year-over-Year
Gross Profit Growth	44.6%	Year-over-Year

ODM (Original Design Manufacturer) capability is a key value driver, demonstrated by securing an initial order for 100,000 units of a new model of brushless electric motor from a strategic customer.

This ODM project followed a development cycle that began nearly five years ago, showing commitment to complex, custom product development.

Reliability as a long-term supplier is reinforced by serving customers who are blue-chip equipment manufacturers, with most revenue generated from customers in Europe.

The company's operational footprint provides flexibility in assembly methods.

• Manufacturing facilities are in Yangon, Myanmar, and Shenzhen, China.
• The company has minimal dependence on the U.S. market, with less than 4% of total product exports going to the U.S. in the last twelve months.
• Of that small U.S. exposure, only 3% originated from China and 1% from Myanmar operations.
• The company reported a currency exchange gain of $124,000 for the first nine months of fiscal year 2025, mainly due to the weakened Myanmar Kyat.

The manufacturing split allows for different assembly approaches, supporting the value proposition of flexibility.

Highway Holdings Limited (HIHO) - Canvas Business Model: Customer Relationships

You're looking at a relationship structure deeply embedded in the Original Equipment Manufacturer (OEM) and Original Design Manufacturer (ODM) space. Highway Holdings Limited (HIHO) operates on a direct, business-to-business (B2B) sales model, which means every dollar of the $7.4 million in net sales for the fiscal year 2025 came directly from other manufacturers, not consumers. The CEO explicitly states that as an OEM manufacturer, the company's fortunes are tied directly to the business health and quality of these customers.

The relationships are built on a foundation of high-touch, consultative work for custom OEM/ODM projects. A concrete example of this embeddedness is the new brushless electric motor project, which involved a development cycle spanning nearly five years before an initial order of 100,000 units was secured. This kind of multi-year engagement is the hallmark of a long-term, embedded relationship, where Highway Holdings Limited (HIHO) acts as the Original Design Manufacturer (ODM), suggesting a higher level of trust and technical partnership than standard OEM work.

For your analysis, here's how the financial results for fiscal year 2025 reflect the stability and evolution of these customer relationships:

Metric	Fiscal Year 2025 (Ended Mar 31)	Fiscal Year 2024
Net Sales	$7.4 million	$6.3 million
Gross Profit	$2.5 million	$1.7 million
Gross Margin	33%	27%
Net Income/(Loss)	$106,000 (Income)	($959,000) (Loss)

The expansion of the gross margin from 27% in FY2024 to 33% in FY2025 suggests that the shift toward higher-value ODM work, like the new motor project, is positively impacting the profitability derived from these customer engagements. Furthermore, the company maintains a solid financial footing to support these long engagements, reporting total equity of $6.3 million as of March 31, 2025.

The core characteristics defining the Customer Relationships block are:

• Dedicated account management for large, strategic OEM customers.
• Long-term, embedded relationships with key customers.
• Direct, business-to-business (B2B) sales model.
• High-touch, consultative approach for custom OEM/ODM projects.

The customer base is concentrated, with Highway Holdings Limited (HIHO) serving as an international manufacturer of parts for blue-chip equipment manufacturers based primarily in Germany. The sales structure is segmented across Metal Stamping and Mechanical OEM and Electric OEM, with the Metal Stamping and Mechanical OEM segment historically generating the maximum revenue. The successful ramp-up of the new motor business, expected in fiscal Q4 2025, is intended to be a significant addition to production volume and revenue growth from an existing strategic customer.

In the B2B context, where 86% of B2B buyers prefer a vendor who understands their goals, Highway Holdings Limited (HIHO)'s consultative approach directly addresses this need, especially when developing custom components. The transition to ODM status, as seen with the new motor, is a clear indicator of moving beyond transactional supply to becoming a trusted advisor in design and manufacturing.

Highway Holdings Limited (HIHO) - Canvas Business Model: Channels

You're looking at how Highway Holdings Limited (HIHO) gets its precision-engineered components and assemblies into the hands of its global Original Equipment Manufacturer (OEM) customers. The channel strategy is deeply tied to its manufacturing footprint in Asia, serving a customer base that, as of the fiscal year ended March 31, 2025, was heavily concentrated in Europe.

The primary channel involves a direct sales force targeting international OEM customers. HIHO manufactures for blue chip OEMs, meaning they aren't typically selling through distributors or retail channels; it's a direct, business-to-business relationship. This direct approach helps maintain the high-quality standards required for their Metal Stamping and Mechanical OEM and Electric OEM segments. Looking at the geographic revenue distribution for the fiscal year 2025, the channel effectiveness is clear: Europe accounted for 95.6% of the total revenue reported in that breakdown, with North America bringing in 4.4%. That heavy skew shows where the direct sales efforts are yielding the most significant financial results.

The physical backbone of the channel is its manufacturing facilities in Asia serving as production and delivery hubs. These sites are where the value is created and where products are staged for shipment. HIHO operates facilities in two key locations. The Shenzhen, China, facility is substantial, comprising approximately 135,000 square feet. Over in Myanmar, the Yangon facility adds another 60,000 square feet to the production capacity. These Asian hubs allow HIHO to leverage cost-effective production while remaining close to critical supply chains for raw materials and initial logistics staging.

Supporting these operations is the administrative and sales office based in Hong Kong. This location acts as the corporate nerve center, handling the high-level coordination, finance, and likely the primary interface for many international OEM contracts. With a total headcount of 147 employees as of December 2, 2025, this Hong Kong base is where the strategic direction for managing these complex, direct sales channels is set.

Finally, the last mile of the channel involves direct shipping and logistics networks to customer locations. Given that the majority of revenue flows to Europe, the logistics must be robust enough to handle international freight for components and sub-assemblies. HIHO's strategy is to provide the best possible service at the lowest possible costs, which means optimizing these direct shipping lanes from the Asian production hubs to the OEM assembly lines worldwide.

Here's a quick look at the operational scale supporting these channels as of late 2025:

Channel/Operational Metric	Data Point	Reference Period/Date
Fiscal Year 2025 Revenue	$7.4 million	Ended March 31, 2025
FY2025 Revenue YoY Growth	17.3%	Fiscal Year 2025
Primary Revenue Region (Europe)	95.6%	FY2025 Geographic Distribution
Shenzhen Manufacturing Footprint	135,000 square feet	Operational Data
Yangon Manufacturing Footprint	60,000 square feet	Operational Data
Total Company Employees	147	December 2, 2025

The company's ability to return to full-year profitability in fiscal 2025, with a net income of $106,000, suggests that the direct channel management and cost control within the production hubs were effective improvements over the prior year's loss.

You should definitely review the Q1 Fiscal 2026 results, reported in September 2025, to see if the revenue concentration in Europe is holding steady or if the North American channel is starting to gain traction. Finance: draft 13-week cash view by Friday.

Highway Holdings Limited (HIHO) - Canvas Business Model: Customer Segments

You're looking at the core buyers for Highway Holdings Limited (HIHO), and it's definitely concentrated in the industrial OEM space. The company manufactures and supplies a wide variety of high-quality metal, plastic, electric, and electronic parts, components, subassemblies, and finished products directly to Original Equipment Manufacturers (OEMs) and contract manufacturers.

The most significant customer concentration is with international blue-chip equipment manufacturers, primarily based in Germany. Geographically, Europe is where the bulk of the revenue comes from, even though the company also serves customers in Hong Kong and China, North America, and Other Asian countries. For the fiscal year ended March 31, 2025, Highway Holdings Limited reported total net sales of $7.4 million, achieving a net income of $106,000. The total equity as of that date stood at $6.3 million.

The customer base is served through two distinct operating segments, with the Metal Stamping and Mechanical OEM segment historically generating the maximum revenue.

Customer Segment/Activity	Revenue (Fiscal Year Ended March 2025)
Metal Stamping and Mechanical OEM	$5.19 million
Electric OEM	$3.98 million

The customers require high-precision components across the board. These parts go into the manufacturing of products like photocopiers, laser printers, computer equipment, electrical connectors, vacuum cleaners, and various appliance components.

• Metal parts and components
• Plastic parts and components
• Electrical components and circuits
• Subassemblies and finished products

The Electric OEM segment is evolving, focusing on plastic and electronic parts, components, and motors. You should note that Highway Holdings Limited received an initial customer order for a new brushless electric motor in September 2024. Production for this new motor project was expected to start in the fiscal third quarter of 2025 and ramp up in the fiscal fourth quarter of 2025. This new business line is a key area for expanding revenue growth, separate from the existing, more traditional OEM business which remains under pressure.

There's also a stated exploration into potential customers in the non-manufacturing sector, such as services for China's elderly. Honestly, as of the latest reports, this appears to be an area of strategic focus rather than a segment contributing measurable revenue yet. The company is focusing on new growth avenues and strategic acquisitions to navigate the current economic climate.

Finance: draft 13-week cash view by Friday.

Highway Holdings Limited (HIHO) - Canvas Business Model: Cost Structure

You're looking at the core expenses Highway Holdings Limited (HIHO) carries to make and sell its products. As an international manufacturer of high-quality parts and products for blue-chip equipment manufacturers, primarily in Germany, the model is, as expected, heavily cost-driven.

The cost structure is dominated by the direct costs of production, which is typical for a company with manufacturing facilities in Yangon, Myanmar, and Shenzhen, China. This geographic setup is intended to keep costs low, but the sheer volume of production means these costs are substantial.

The High cost of goods sold (COGS) relative to revenue is the most telling feature here. For the fiscal year ended March 31, 2025, the Cost of Sales was a significant portion of the top line. This directly reflects the raw material and direct labor expenses inherent in metal stamping and OEM component manufacturing.

Here's a quick look at the key financial components for the fiscal full year 2025:

Cost/Expense Component (FY Ended March 31, 2025)	Amount (in thousands USD)	Percentage of Net Sales
Net Sales	$7,412	100.00%
Cost of Sales (COGS)	$4,942	66.68%
Gross Profit	$2,470	33.32%
Selling, General and Administrative Expenses (SG&A)	$3,005	40.54%
Operating Income/(Loss)	($535)	(7.22%)

The Cost of Sales at $4,942 thousand against Net Sales of $7,412 thousand for the full fiscal year 2025 clearly shows that production costs consume nearly two-thirds of revenue. This high ratio confirms the model is cost-driven.

The Significant labor and overhead costs for Asian manufacturing operations are baked into that Cost of Sales figure, alongside material costs. Furthermore, the Selling, General and Administrative expenses (SG&A) for the full fiscal year 2025 were $3,005 thousand. When you subtract this SG&A from the Gross Profit of $2,470 thousand, you arrive at the Operating Loss of ($535 thousand) for the year, showing that overhead and administrative costs, even after accounting for the gross margin, pushed the core operations into a loss before non-operating items.

The Operating expenses for administrative offices in Hong Kong are part of that SG&A base. While the exact split between Hong Kong administration and general selling costs isn't itemized here, the total SG&A figure of $3,005 thousand for FY 2025 represents a substantial fixed/semi-fixed cost base that needs to be covered by manufacturing efficiency.

Highway Holdings Limited is actively pursuing Investment in new business lines and strategic acquisitions for growth to potentially alter this cost structure reliance. The company has noted it is evaluating numerous possible ventures to build value and reduce dependence on its traditional OEM business health, which is sensitive to macro factors like geopolitical tensions.

Key cost drivers and related operational facts include:

• Cost of Sales for the fourth quarter of fiscal 2025 was $1,182 thousand on net sales of $1,487 thousand.
• SG&A for the second quarter of fiscal year 2025 was $724 thousand, up from $272 thousand in the prior year period.
• Manufacturing facilities are in Yangon, Myanmar, and Shenzhen, China.
• The company's primary business segments contributing to costs are Metal Stamping and Mechanical OEM (60.71% of revenue) and Electric OEM (39.29% of revenue) for FY 2025.

Finance: draft 13-week cash view by Friday.

Highway Holdings Limited (HIHO) - Canvas Business Model: Revenue Streams

Highway Holdings Limited (HIHO) revenue streams are primarily driven by the Sales of manufactured parts and components (OEM/ODM) to blue chip equipment manufacturers, mainly based in Germany, with manufacturing operations in Yangon, Myanmar, and Shenzhen, China.

The top-line performance for the most recent full fiscal year shows a clear rebound in sales activity. For Fiscal Year 2025, Highway Holdings Limited (HIHO) reported Net Sales of $7.4 million, which represents a 17.5% increase YoY. This top-line growth translated directly into improved profitability metrics.

The company achieved a Gross profit margin of 33% for fiscal year 2025, a significant jump from the 27% margin reported in fiscal year 2024. This margin improvement, coupled with the higher sales volume, allowed Highway Holdings Limited (HIHO) to post a Net income of $106,000 for fiscal year 2025, marking a return to profitability after a net loss in the prior year. That's a big swing from a net loss of $959,000 in fiscal year 2024.

Beyond core product sales, the revenue composition includes supplementary, non-operating income sources. You should track these carefully, as they can impact the bottom line, especially in volatile currency environments. For fiscal year 2025, the company reported an Income from favorable currency exchange gains, specifically a gain of $124,000, compared to a $198,000 gain in fiscal year 2024. Income from interest is also a component, though specific figures for that line item aren't always broken out separately in the top-level summaries.

Here's a quick look at the key financial performance indicators for the revenue stream in Fiscal Year 2025:

Metric	Amount / Rate
Fiscal Year 2025 Net Sales	$7.4 million
Year-over-Year Net Sales Growth	17.5%
Fiscal Year 2025 Gross Profit Margin	33%
Fiscal Year 2025 Net Income	$106,000
Fiscal Year 2025 Currency Exchange Gain	$124,000

The primary revenue drivers and their associated financial context are:

• Sales of manufactured parts and components (OEM/ODM).
• Net Sales for FY2025 reached $7.4 million.
• Gross profit grew to $2.5 million in FY2025.
• The return to profit was achieved despite ongoing headwinds.
• Currency exchange gains provided a $124,000 boost.

To be fair, while the return to profitability is a positive sign, the net income of $106,000 on $7.4 million in sales means the net profit margin for the year was only about 1.4%, so the operational leverage is still thin. Finance: draft 13-week cash view by Friday.