Highway Holdings Receives Initial Customer Order for New Brushless Electric Motor

Rhea-AI Summary

Highway Holdings (Nasdaq: HIHO) has received an initial order of 100,000 units for a new model of brushless electric motor from one of its largest strategic customers. The company designed and manufactured this motor specifically for the customer, acting as an Original Design Manufacturer (ODM) rather than an Original Equipment Manufacturer (OEM).

The development of this motor began nearly five years ago but faced significant delays due to COVID-19. Highway Holdings already manufactures synchron and stepping motors for another major customer, and this new brushless electric motor is expected to be a significant addition to their production lines. The company anticipates becoming a leading supplier of this motor type to the customer, with the increased demand expected to boost production volume and contribute significantly to revenue growth in the near future.

Positive

• Received initial order of 100,000 units for new brushless electric motor
• Acted as Original Design Manufacturer (ODM) for strategic customer
• Expected to become a leading supplier of this motor type
• Anticipated boost in production volume
• Projected significant contribution to revenue growth

Negative

• Development faced significant delays due to COVID-19, extending over three years

HONG KONG , Sept. 4, 2024 /PRNewswire/ -- Highway Holdings Limited (Nasdaq: HIHO, the "Company" or "Highway Holdings") today announced the Company received an initial order of 100,000 units for a new model of brushless electric motor from one of its largest strategic customers. The new motor was designed and manufactured by the Company specifically for such customer, with the Company serving as the Original Design Manufacturer ("ODM"), rather than as an Original Equipment Manufacturer ("OEM").

Roland Kohl, chairman, president and chief executive officer of Highway Holdings, commented, "We are very pleased to finally get this order. The development began nearly five years ago under an ODM project instead of an OEM one. However, the original schedule faced significant delays, extending over three years, due to the impact of COVID-19 and its aftermath."

"We currently manufacture synchron and stepping motors for another major customer, and our new model brushless electric motor is a significant addition to our existing production lines. As soon as our new production line gears up and is fully operational, we anticipate becoming a leading supplier of this motor type to the customer we designed the motor for. The increased demand for this new model is expected to significantly boost our production volume and serve as a major contributor to our revenue growth in the near future."

About Highway Holdings Limited

Highway Holdings is an international manufacturer of a wide variety of quality parts and products for blue chip equipment manufacturers based primarily in Germany. Highway Holdings' administrative offices are located in Hong Kong and its manufacturing facilities are located in Yangon, Myanmar and Shenzhen, China. For more information, visit the Company's website at www.highwayholdings.com.

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.

View original content:https://www.prnewswire.com/news-releases/highway-holdings-receives-initial-customer-order-for-new-brushless-electric-motor-302238844.html

SOURCE Highway Holdings Limited

FAQ

What is the initial order size for Highway Holdings' new brushless electric motor?

Highway Holdings (HIHO) received an initial order of 100,000 units for its new model of brushless electric motor from one of its largest strategic customers.

How long did the development of Highway Holdings' new brushless electric motor take?

The development of the new brushless electric motor began nearly five years ago but faced significant delays, extending over three years due to the impact of COVID-19 and its aftermath.

What role did Highway Holdings (HIHO) play in the development of the new brushless electric motor?

Highway Holdings (HIHO) acted as an Original Design Manufacturer (ODM) for the new brushless electric motor, designing and manufacturing it specifically for the customer rather than as an Original Equipment Manufacturer (OEM).

How is the new brushless electric motor expected to impact Highway Holdings' (HIHO) business?

The new brushless electric motor is expected to significantly boost Highway Holdings' (HIHO) production volume and serve as a major contributor to revenue growth in the near future. The company anticipates becoming a leading supplier of this motor type to the customer.