HIGHWAY HOLDINGS REPORTS SECOND QUARTER FISCAL YEAR 2026 RESULTS

HONG KONG, Dec. 15, 2025 /PRNewswire/ — Freeway Holdings Restricted (Nasdaq: HIHO, the “Company” or “Highway Holdings”) nowadays reported effects for the second one quarter of fiscal presen 2026 and the six months ended September 30, 2025.

Internet gross sales for the second one quarter of fiscal presen 2026 had been $1.18 million in comparison to $2.11 million in the second one quarter of fiscal presen 2025. Internet loss for the second one quarter of fiscal presen 2026 was once $373,000, or web lack of $0.08 in step with diluted percentage, in comparison with web source of revenue of $231,000, or web source of revenue of $0.05 in step with diluted percentage in the second one quarter of fiscal presen 2025.

Roland Kohl, chairman, president and eminent government officer of Freeway Holdings, famous, “The adverse pressure on our long-term OEM business continues, including a reorganization of one of our customer’s production plants which shifted a substantial part of our motor OEM business to that customer’s own motor manufacturing company in Czechia. We still maintain a smaller portion of this OEM customer’s motor business but the revenue contribution from this customer has been substantially reduced.”

“While this action will result in a substantial reduction of our previous motor OEM business, we are fortunate that at the same time, another OEM customer finally approved the mass production of its motor product. We are in the early ramp-up phase, which will cause a time period with lower motor sales, but this new motor business is expected to eventually compensate for the loss of the other customer’s motor business. Since all of the remaining motor manufacturing shall be performed in China, this will result in a workforce reduction in our Myanmar plant.”

“On the positive side, we recently also received a substantial order from our old gaming industry business customer. We are happy that this prior business was not lost and is coming back strongly. But we still expect a gap in time between the loss of the old business and the new, replacement business.”

“As an OEM supplier, our success remains fully dependent on the success of our customers, with failures having an outsized impact on our business. We continue to evaluate options to ease the dependent, captured situation we are faced with. We have looked at numerous German companies for the purpose of M&A only to discover during the due diligence process that their businesses were having the same or even worse problems, which would only serve to further burden our business. As a result, it has taken a much longer time to find a viable acquisition. We are, however, optimistic at this juncture that we have found a suitable target, which we are in the final stage of negotiation with. We believe there are many synergies with this company that will benefit both parties. At the same time, we continue to look actively for other types of business. For example, we started to look inside the China market. This is a longer-term effort, given we have previously focused only on manufacturing for export. We are presently in a testing phase determining how best to enter the Chinese market given our core manufacturing business.  We are also evaluating a potential entirely new revenue stream – providing services for the Chinese market’s large and fast growing elderly population. As this would represent an entirely new business line, we are proceeding cautiously to test viability, while minimizing development costs. These new activities align with our long-term focus on reinvigorating revenue and profit growth, and building a more stable model that is not in a captive position. While these new activities will take time and burden in a limited way our existing business, we are confident we are moving in the right direction with the intention of moving the company into a stronger position over the coming year.”

Improper benefit for the second one quarter of fiscal presen 2026 was once $301,000 in comparison with $834,000 within the presen in the past length basically because of the 44% short in gross sales over the similar length. Improper benefit as a share of gross sales for the second one quarter of fiscal presen 2026 was once 25.5 p.c, in comparison to 39.4 p.c within the presen in the past length, basically because of lowered gross sales. Improper benefit for the primary part of fiscal presen 2026 was once $828,000 in comparison with $1,495,000 within the presen in the past length. Improper benefit as a share of gross sales for the primary part of fiscal presen 2026 was once 30.4 p.c in comparison with 37.4 p.c within the presen in the past length.

Promoting, normal and administrative bills for the second one quarter of fiscal presen 2026 quite larger to $843,000 from $724,000.

Internet source of revenue for the second one quarter of fiscal presen 2026 displays a foreign money alternate acquire of $11,000 in comparison to a $58,000 acquire within the presen in the past. The Corporate reported a foreign money alternate acquire of $15,000 for the primary part of fiscal presen 2026, in comparison with a $96,000 acquire within the presen in the past length.

Passion source of revenue was once roughly $54,000 for the second one quarter of fiscal presen 2026 in comparison to roughly $97,000 for the primary part of fiscal presen 2026. The Corporate continues to get pleasure from the reasonably prime rates of interest on mounted deposits in spite of the negligible short in rates of interest within the contemporary months. Upon overview of its China tax place, the Corporate reversed a portion of its prior presen’s source of revenue tax provision for a Chinese language subsidiary.

The Corporate’s stability sheet residue sturdy, with overall property of $8.37 million and money and money equivalents in plenty of $5.6 million, or roughly $1.21 in step with diluted percentage. The money and money similar quantity exceeded all of its short- and long-term liabilities via roughly $3.2 million. General shareholders’ fairness at September 30, 2025, was once $6.0 million, or $1.30 in step with diluted percentage.

About Freeway Holdings Restricted

Freeway Holdings is a global producer of all kinds of attribute portions and merchandise for blue chip apparatus producers based totally basically in Germany. Freeway Holdings’ administrative workplaces are positioned in Hong Kong and its production amenities are positioned in Yangon, Myanmar, and Shenzhen, China. For more info talk over with web site www.highwayholdings.com.

Apart from for the ancient knowledge contained herein, the issues mentioned on this press drop are forward-looking statements which contain dangers and uncertainties, together with however now not restricted to financial, aggressive, governmental, political and technological elements affecting the corporate’s revenues, operations, markets, merchandise and costs, and alternative elements mentioned within the corporate’s diverse filings with the Securities and Alternate Fee, together with with out limitation, the corporate’s annual reviews on Mode 20-F.

(Monetary Tables Apply)

SOURCE Freeway Holdings Restricted