Highway Holdings Limited (NASDAQ: HIHO) has reported its fiscal year financial results for the year ended March 31, 2021, reflecting the negative effect of the pandemic and the military coup in Mynamar on its operations in the country. Equally, general components and raw materials shortage, including semiconductor chips and electronic components, impacted the results.
Highway Holdings reported net sales of $2.9 in Q4 2021
Net sales in Q4 2021 dropped from $2.9 million in 2020 to $1.8 million. The sales decline is attributed to a factory closure in Myanmar for two weeks in March following a military coup in the country. As a result, net loss was $0.551 million or $0.14 per share relative to a net income of $0.563 million or $0.14 per share in Q4 2020. Fiscal 2021 net sales were $9.2 million with a net loss of $0.461 million or $0.12 per share.
Roland Kohl, the company’s CEO, said, “The decrease in net sales in our fourth quarter, as well as for the full fiscal year, was primarily attributable to the February 1, 2021, coup d’état in Myanmar, the ongoing business slowdown caused by the global pandemic and the raw materials and parts shortage that started at the end of 2020. As a result of the unrest and a temporary lack of workers at our factory in Myanmar, together with the shortage of material supply, we had an interrupted production flow for almost all of March 2021.”
Highway Holdings is in a strong financial position
Kohl said that most of the company’s employees have returned, and they are now fully operational. However, he said that production loss in March severely impacted the company’s fiscal 2021results considering March is traditionally the company’s strongest month. Kohl indicted that their balance sheet is strong, with total current assets at the end of March being $11.5 million, total cash stood at $7.8 million, and total equity was $9.8 million or $2.4 per share.