HIGHWAY HOLDINGS LIMITED
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The company is a leading OEM/ODM manufacturer of various components, subassemblies and products for multinational companies. The company specializes in designing and manufacturing film camera, underwater products, specialized LCD-TV/Monitors, LED lights, light fixtures, watches and clocks. The company also offers metal manufacturing services, including metal stamping, spray painting, screen printing, plastic injection molding, pad printing, and electronic assembly services as well as provides electronic assembly services, such as chip on board assembly, IC-bonding, and SMT automatic components assembly of printed circuit boards.
The company supplies metal, plastic, electric and electronic components, subassemblies and finished products for major original equipment manufacturers (OEMs) and contract manufacturers in Japan, Germany and the United States. The company is based in Hong Kong and has manufacturing facilities in Long Hua and Ping Hu in Shenzhen; He Yuan, Guangdong; and Wu Xi, Jiangsu, China.
The company’s mission is to become the best outsourcing solution for multi-national companies. The company was established in 1990 and was listed on the Nasdaq Stock Market since 1996 under the trading symbol ”HIHO”. The company established Wuxi Kayser Metal Mfg. Ltd., a manufacturer of metal components, in 2005 and acquired Golden Bright Plastic Manufacturing Company Limited, a specialist in plastic injection molding and mold making, in 2006.
The Company engages in the manufacture of metal, plastic, electric and electronic components, subassemblies, and finished products for original equipment manufacturers and contract manufacturers in Germany, the United States, Hong Kong, North America, China, Europe, and Japan.
Description and history
The Company engages in the manufacture and supply of metal, plastic, and electric parts and components for original equipment manufacturers and contract manufacturers.
The Company began its operations in 1990 in Hong Kong as a metal stamping company. In 1991, the Company transferred the metal stamping operations to a factory in Long Hua, Shenzhen, China, where the metal stamping and the Company’s other operations have been conducted pursuant to agreements entered into between certain China companies set up by the local government and the Shenzhen City Baoan District Foreign Economic Development Head Company and its designees (collectively, the “BFDC”) (the agreements, collectively the “BFDC Agreements”). As a result of the BFDC Agreements, the Company is provided with manufacturing facilities and labor by affiliates of local government instrumentalities, for which the Company pays management fees, based on a negotiated sum per factory worker, and other charges, as well as rent for the factory complex.
Since its organization in 1990, the Company has primarily been a manufacturer of high quality metal parts for major Japanese and German OEMs.
After establishing its metal manufacturing operations, the Company in 1991 began a camera manufacturing business by acquiring the Hi-Lite Camera Company, a Hong Kong camera company.
In 1997, the Company purchased substantially all the assets of Kienzle Uhrenfabrik GmbH (“Kienzle Uhren”), a clock and watch manufacturer that traces its origin back to 1822 in Germany, that was at the time in receivership. The purchase included the trademark to the “Kienzle” name and the equipment, machinery, tools, patents and furniture and office equipment of Kienzle Uhren. Subsequent to purchasing the equipment, the assets of Kienzle Uhren were dismantled, packed and shipped from Germany to the Company’s facilities in Hong Kong and China. Thereafter, the Company commenced manufacturing clocks for third parties for sale under various brand names (such as Braun, Swatch, and Casio), as well as clocks for the Company’s own account (which clocks were sold under the Company’s own “Kienzle” brand name).
During the fiscal years ended March 31, 2003 and 2004, the Company has also licensed the “Kienzle” mark for use with various other products in Europe, which products were manufactured by others. The Company also manufactured and sold watches, both under its “Kienzle” brand name and for sale under other labels. However, as with the camera operations, the market for clocks and watches has, during the past few years, decreased and become extremely price competitive. As a result, in fiscal year ended March 31, 2006, the Company sold all of its rights to the “Kienzle” trademark for an aggregate purchase price of $2,160,000 and terminated most of its clock and watch operations. The Company now only manufactures clocks and watches on a limited basis as an OEM manufacturer for third party clock/watch companies.
The company’s products are used in the manufacture of various products, such as photocopiers, laser printers, compact disc players, laser disc players, cassette players, computer equipment, electrical components, electrical connectors, cameras, clocks, automobile accessories, vacuum cleaners, light fixtures, electro motors, wireless chimes, air pumps and dishwashers, and other washing machine components. It also assists customers in the design and development of the tooling used in the metal and plastic manufacturing process. In addition, the company provides metal manufacturing services, including metal stamping, spray painting, screen printing, plastic injection molding, and pad printing, as well as electronic assembly services comprising chip on board assembly, IC-bonding, and SMT automatic components assembly of printed circuit boards. Further, it manufactures clocks and watches, as well as underwater digital camera casings and waterproof LED lights for various OEM customers
On September 19, 2006 the Company acquired 100% equity interest in Golden Bright Plastic Manufacturing Company Limited (‘Golden Bright’) for a cash consideration of $514. Golden Bright, a company incorporated in Hong Kong, is engaged in the manufacturing and trading of plastic injection products. In accordance with the purchase agreement, additional consideration of $1,028 was payable, contingent on the former substantial shareholders of Golden Bright continuing as employees for a requisite service period of three years and on the acquired subsidiary achieving a certain level of specified revenue and earnings targets.
The Company’s Common Shares are currently traded on the Nasdaq Capital Market under the symbol “HIHO” and are not listed for trading in any trading market outside the United States
Specializes in the manufacture of various components, subassemblies and products for multinational companies
GOLDEN BRIGHT PLASTIC MANUFACTURING COMPANY LIMITED
DELOITTE TOUCHE TOHMATSU CERTIFIED PUBLIC ACCOUNTANTS
US SIC Code
Landmark North, Level 8, Suite 81039
Lung Sum Avenue
City province or state postal code
852, SHEUNG SHUI
Phone: +852 852 2494 0923
Fax: +852 852 2343 4976
Country address: HONG KONG
Website url: www.highwayholdings.com