HONG KONG, Oct. 12, 2004 (PRIMEZONE) -- Highway Holdings Limited (Nasdaq:HIHO) today announced it has received credit facility increases from The Hongkong and Shanghai Banking Corporation Limited and DBS Bank Hong Kong Limited, representing an aggregate increase of approximately $1.02 million from its existing combined credit facilities of $2.82 million to $3.84 million. Terms are substantially equivalent to its existing credit facilities.
The company indicated that the current operations do not require additional financial resources, but these increased banking facilities may be utilized for working capital and general corporate purposes for new business expansion.
"The granting of these increased credit facilities highlights the company's solid financial position and provides the flexibility to manage our business effectively," said Roland Kohl, president and chief executive officer of Highway Holdings.
At fiscal year end, March 31, 2004, the company had working capital of $8.8 million, compared with $7.7 million at March 31, 2003. Total Shareholders' equity improved to $12.8 million from $11.9 million last year. The company's current ratio was 2.61:1 at March 31, 2004, with essentially no long-term debt.
About Highway Holdings
Highway Holdings produces a wide variety of high-quality products for blue chip original equipment manufacturers -- from simple parts and components to sub-assemblies and finished products. It also manufactures clocks, clock movements and watches for sale under the company's own Kienzle Uhren brand name, as well as for unaffiliated companies. Additionally, Highway Holdings manufactures or produces other finished products, including single-use and 35mm cameras and certain electronic products. Highway Holdings is headquartered in Hong Kong and operates manufacturing facilities in Shenzhen province of the People's Republic of China.
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, 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.