Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | HIGHWAY HOLDINGS LTD |
Document Type | 20-F |
Current Fiscal Year End Date | --03-31 |
Entity Common Stock, Shares Outstanding | 4,086,825 |
Amendment Flag | false |
Entity Central Index Key | 0001026785 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Mar. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-38490 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | Suite 1801 |
Entity Address, Address Line Two | Level 18 |
Entity Address, Address Line Three | Landmark North 39 Lung Sum AvenueSheung Shui |
Entity Address, City or Town | New Territories |
Entity Address, Country | HK |
Entity Interactive Data Current | Yes |
Document Financial Statement Error Correction [Flag] | false |
Document Accounting Standard | U.S. GAAP |
Auditor Name | Centurion ZD CPA & Co. |
Auditor Location | Hong Kong, China |
Auditor Firm ID | 2769 |
Entity Address, Postal Zip Code | 0000 |
Business Contact | |
Document Information Line Items | |
Entity Address, Address Line One | Suite 1801 |
Entity Address, Address Line Two | Level 18 |
Entity Address, Address Line Three | Landmark North39 Lung Sum AvenueSheung Shui |
Entity Address, City or Town | New Territories |
Entity Address, Country | HK |
Contact Personnel Name | Roland Kohl |
City Area Code | (852) |
Contact Personnel Fax Number | 2344 |
Local Phone Number | 2344-4248 |
Contact Personnel Email Address | roland.kohl@highwayholdings.com |
Entity Address, Postal Zip Code | 00000 |
Common Shares, $0.01 par value per share | |
Document Information Line Items | |
Trading Symbol | HIHO |
Title of 12(b) Security | Common Shares, $0.01 par value per share |
Security Exchange Name | NASDAQ |
Preferred Share Purchase Rights | |
Document Information Line Items | |
Trading Symbol | N/A |
Title of 12(b) Security | Preferred Share Purchase Rights |
Security Exchange Name | NASDAQ |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | |||
Revenue from contracts with customers | $ 10,242 | $ 12,365 | $ 9,168 |
Cost of sales | (7,101) | (8,595) | (6,461) |
Gross profit | 3,141 | 3,770 | 2,707 |
Selling, general and administrative expenses | (3,618) | (3,203) | (3,323) |
Operating (loss) income | (477) | 567 | (616) |
Non-operating (expense) income: | |||
Exchange (loss) gain, net | 32 | (24) | (60) |
Interest income | 87 | 11 | 16 |
Other income | 38 | 51 | |
Gain on disposal of property, plant and equipment | 7 | 14 | 9 |
Total non-operating income | 164 | 1 | 16 |
(Loss) income before income taxes | (313) | 568 | (600) |
Income taxes (note 3) | 20 | (101) | 146 |
Net (loss) income | (293) | 467 | (454) |
Net profit attributable to non-controlling interests | (1) | (24) | (7) |
Net (loss) income attributable to Highway Holdings Limited’s shareholders | $ (294) | $ 443 | $ (461) |
Net (loss) income per share: | |||
- basic (in Dollars per share) | $ (0.07) | $ 0.11 | $ (0.12) |
- diluted (in Dollars per share) | $ (0.07) | $ 0.11 | $ (0.12) |
Weighted average number of shares outstanding: | |||
- basic (in Shares) | 4,070,524 | 4,033,346 | 4,006,400 |
- diluted (in Shares) | 4,070,524 | 4,187,731 | 4,006,400 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (293) | $ 467 | $ (454) |
Other comprehensive loss, net of tax: | |||
Change in cumulative foreign currency translation adjustment | (130) | (392) | (148) |
Comprehensive (loss) income | (423) | 75 | (602) |
Comprehensive (income) loss attributable to non-controlling interest | (12) | 17 | (7) |
Comprehensive (loss) income attributable to Highway Holdings Limited’s shareholders | $ (435) | $ 92 | $ (609) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents (note 4) | $ 6,952 | $ 6,010 |
Time deposits | 1,075 | |
Accounts receivable, net (note 5) | 1,886 | 2,260 |
Inventories, net (note 6) | 1,413 | 2,350 |
Prepaid expenses and other current assets (note 7) | 406 | 620 |
Income tax recoverable | 3 | 7 |
Total current assets | 10,660 | 12,322 |
Goodwill, net | ||
Property, plant and equipment, net (note 8) | 401 | 643 |
Operating lease right-of-use assets (note 11) | 2,514 | 1,799 |
Long-term deposits | 213 | |
Long-term loan receivable (note 13) | 95 | 95 |
Investments in equity method investees (note 9) | ||
TOTAL ASSETS | 13,883 | 14,859 |
Current liabilities: | ||
Accounts payable | 928 | 828 |
Operating lease liabilities, current (note 11) | 573 | 933 |
Accrued expenses and other current liabilities (note 10) | 1,991 | 2,599 |
Income tax payable | 568 | 620 |
Dividend payable | 1 | 202 |
Total current liabilities | 4,061 | 5,182 |
Operating lease liabilities, non-current (note 11) | 1,482 | 268 |
Deferred income taxes (note 3) | 107 | 140 |
Long term accrued expenses | 17 | |
Total liabilities | 5,667 | 5,590 |
Commitments and contingencies (note 14) | ||
Shareholders’ equity: | ||
Preferred shares, $0.01 par value (Authorized: 20,000 shares; no shares issued and outstanding as of March 31, 2022 and 2023) | ||
Common shares, $0.01 par value (Authorized: 20,000,000 shares; 4,036,825 shares as of March 31, 2022 and 4,086,825 shares as of March 31, 2023 issued and outstanding) | 41 | 40 |
Additional paid-in capital | 12,003 | 11,816 |
Accumulated deficit | (3,396) | (2,284) |
Accumulated other comprehensive loss | (444) | (303) |
Total Highway Holdings shareholder’s equity | 8,204 | 9,269 |
Non-controlling interests | 12 | |
Total Equity | 8,216 | 9,269 |
TOTAL LIABILITIES AND EQUITY | $ 13,883 | $ 14,859 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred shares, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred shares, shares authorized | 20,000 | 20,000 |
Preferred shares, shares issued | ||
Preferred shares, shares outstanding | ||
Common shares, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 20,000,000 | 20,000,000 |
Common shares, shares issued | 4,086,825 | 4,036,825 |
Common shares, shares outstanding | 4,086,825 | 4,036,825 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Common shares, issued and outstanding | Additional paid-in capital | Retained profits (Accumulated deficit) | Accumulated other comprehensive income (loss) | Total Highway Holdings Limited’s Shareholders’ equity | Non- controlling interests | Total |
Balance beginning at Mar. 31, 2020 | $ 40 | $ 11,537 | $ (865) | $ 196 | $ 10,908 | $ 10 | $ 10,918 |
Balance beginning (in Shares) at Mar. 31, 2020 | 3,972 | ||||||
Balance ending at Mar. 31, 2021 | $ 40 | 11,709 | (2,041) | 48 | 9,756 | 17 | 9,773 |
Balance ending (in Shares) at Mar. 31, 2021 | 4,027 | ||||||
Shares issued | |||||||
Shares issued (in Shares) | 15 | ||||||
Exercise of share options | 79 | 79 | 79 | ||||
Exercise of share options (in Shares) | 40 | ||||||
Share-based compensation | 93 | 93 | 93 | ||||
Net (loss) income | (461) | (461) | 7 | (454) | |||
Cash dividends | (715) | (715) | (715) | ||||
Translation adjustments | (148) | (148) | (148) | ||||
Balance ending at Mar. 31, 2022 | $ 40 | 11,816 | (2,284) | (303) | 9,269 | 9,269 | |
Balance ending (in Shares) at Mar. 31, 2022 | 4,037 | ||||||
Exercise of share options | 20 | 20 | 20 | ||||
Exercise of share options (in Shares) | 10 | ||||||
Share-based compensation | 87 | 87 | 87 | ||||
Net (loss) income | 443 | 443 | 24 | 467 | |||
Cash dividends | (686) | (686) | (686) | ||||
Translation adjustments | (351) | (351) | (41) | (392) | |||
Balance ending at Mar. 31, 2023 | $ 41 | 12,003 | (3,396) | (444) | 8,204 | 12 | 8,216 |
Balance ending (in Shares) at Mar. 31, 2023 | 4,087 | ||||||
Exercise of share options | $ 1 | 98 | 99 | 99 | |||
Exercise of share options (in Shares) | 50 | ||||||
Disposal of a subsidiary | 0 | 0 | |||||
Share-based compensation | 89 | 89 | 89 | ||||
Net (loss) income | (294) | (294) | 1 | (293) | |||
Cash dividends | (818) | (818) | (818) | ||||
Translation adjustments | $ (141) | $ (141) | $ 11 | $ (130) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share | $ 0.2 | $ 0.17 | $ 0.18 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (293) | $ 467 | $ (454) |
Depreciation of property, plant and equipment | 209 | 162 | 159 |
Amortization of operating lease right-of-use assets | 932 | 935 | 841 |
Expected credit loss provision | 503 | 51 | |
Write-down of inventories | 67 | 89 | 125 |
Gain on disposal of property, plant and equipment | (7) | (14) | (9) |
Share-based compensation expenses | 89 | 87 | 93 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (145) | (1,346) | 1,017 |
Deferred tax | (12) | (435) | 349 |
Inventories | 794 | (167) | (301) |
Prepaid expenses and other current assets | 94 | (275) | (112) |
Accounts payable | 148 | 153 | (390) |
Accrued expenses and other current liabilities | (461) | 190 | (87) |
Operating lease liabilities | (888) | (871) | (795) |
Income tax payable | (11) | 541 | (521) |
Income tax recoverable | 4 | (7) | |
Long-term accrued expenses | 17 | ||
Long-term deposits | (231) | 276 | (19) |
Net cash (used in) provided by operating activities | 809 | (164) | (104) |
Cash flows from investing activities: | |||
(Placement)/Withdrawal of time deposits | 1,075 | (1,075) | |
Disposal of a subsidiary | 0 | ||
Purchase of property, plant and equipment | (92) | (134) | (88) |
Proceeds from disposal of property, plant and equipment | 8 | 14 | 10 |
Net cash (used in) provided by investing activities | 991 | (1,195) | (78) |
Cash flows from financing activities: | |||
Shares issued | 1 | 0 | |
Share options exercised | 98 | 20 | 79 |
Cash dividends paid | (1,019) | (569) | (981) |
Net cash used in financing activities | (920) | (549) | (902) |
Net (decrease) increase in cash and cash equivalents | 880 | (1,908) | (1,084) |
Cash and cash equivalents at the beginning of year | 6,010 | 7,757 | 8,827 |
Effect of exchange rate changes on cash and cash equivalents | 62 | 161 | 14 |
Cash and cash equivalents at the end of year | 6,952 | 6,010 | 7,757 |
Supplemental disclosure of cash flow information: | |||
Income taxes | $ (1) | $ 2 | $ 27 |
Organization and Basis of Finan
Organization and Basis of Financial Statements | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS | 1. ORGANIZATION AND BASIS OF FINANCIAL STATEMENTS Highway Holdings Limited (the “Company”) was incorporated in the British Virgin Islands on July 20, 1990. It operates through its subsidiaries operating in Hong Kong Special Administrative Region (“Hong Kong”), Shenzhen (comprising Long Hua) of the People’s Republic of China (“China”) and Yangon of the Republic of the Union of Myanmar (“Myanmar”). The Company and its subsidiaries (collectively referred as the “Group”) are engaged in manufacturing and sale of metal, plastic and electronic parts and components. The Group’s manufacturing activities are principally conducted in Shenzhen of China and Yangon of Myanmar, while its selling activities are principally conducted in Hong Kong. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Principles of consolidation (b) Use of estimates The COVID-19 pandemic and the political unrest in Myanmar have created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns and adversely impact the Group’s results of operations. For COVID-19 pandemic, its impact on the Group was generally less significant when compared to previous years. However, any new events or policies on COVID-19 pandemic may affect the Group’s operations in the future. (b) Use of estimates (c) Investments under equity method When the estimated amount to be realized from the investments falls below its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered other than temporary. (d) Cash and cash equivalents Cash equivalents are placed with financial institutions with credit ratings and quality where the Group considers acceptable. (e) Time deposits (f) Accounts receivable - (f) Accounts receivable To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables, other current assets (note 7) and loan receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. Other key factors that influence the expected credit loss analysis include customer demographics, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. As of March 31, 2023, the expected credit loss provision recorded in accounts receivable was $554 (2022: $51). (g) Loan receivables (h) Inventories (i) Goodwill No impairment expenses were recognized during the years ended March 31, 2021, 2022 and 2023. (j) Property, plant and equipment The cost and accumulated depreciation of property, plant and equipment disposed of or sold are removed from the consolidated balance sheets and resulting gains and losses are recognized in the consolidated statements of operations. (k) Impairment or disposal of long-lived assets (other than goodwill) - During the years ended 2021, 2022 and 2023, the Group has reviewed the long-lived assets for impairment, since there are several indicative events and factors identified, including (1) significant adverse changes in the business climate, including the possible negative impact of political unrest in Myanmar, (2) operating and/or cash flow losses, and (3) negative impact on business operations as a result of COVID-19 pandemic and new global human and environmental rights regulations pending or enacted. Management has compared the carrying value of the long-lived asset to the estimated undiscounted operating cash flow based on the above factors. (k) Impairment or disposal of long-lived assets (other than goodwill) (l) Concentration of credit risk The risks with respect to accounts receivables are mitigated by credit evaluations performed on the customers or debtors and ongoing monitoring of outstanding balances. (m) Revenue recognition The Group’s revenue from contracts with customers is derived from product revenue principally from the sales of metal stamping and mechanical OEM and electric OEM products directly to other consumer electronics product manufacturers and from the provision of machinery maintenance services. Product revenue recognition – point of time The Group sell goods to the customer under sales contracts or by purchase orders. The Group has determined there to be one performance obligation for each of the sales contracts and purchase orders. The performance obligations are considered to be met and revenue is recognized when the customer obtains control of the goods. Revenue is recognized at that point of time. The Group has two major goods delivery channels, included: (1) Delivering goods to customers’ predetermined location, the Group has satisfied the contracts’ performance obligations when the goods have been delivered and relevant shipping documents have been collected by the Group; and (2) Picking up goods by customers in the Group’s warehouse, the Group has satisfied the contracts’ performance obligations when the goods have been picked up and the acceptance document has been signed by the customers. Service revenue recognition – over time The Group also provides machinery maintenance services to customers, where revenue is recognized over time. The Group did not recognize any revenue from contracts with customers for performance obligations satisfied over time during the year ended March 31, 2021. The Group recognized certain revenue from contracts with customers for performance obligations satisfied over time, consisting principally of machinery maintenance service income, during the years ended March 31, 2022 and 2023. Breakdown of revenue recognition by product line is as follows: Year ended March 31, 2021 2022 2023 $ $ $ Sale of products 9,168 12,351 10,201 Maintenance service income - 14 41 9,168 12,365 10,242 Breakdown of revenue recognition at a point of time / over time is as follows: Year ended March 31, 2021 2022 2023 $ $ $ Revenue recognized at a point of time 9,168 12,351 10,201 Revenue recognized over time - 14 41 9,168 12,365 10,242 The Group would request a deposit from certain customers upon receiving the purchase order and issue bills to customers upon transfer control of goods and relevant acceptance documents have been collected. Customers’ deposits would be settled part of the outstanding bill upon receiving an acknowledgement from customers. For the remaining balance of outstanding bills, Customers are required to pay over an agreed upon credit period, usually between 30 to 75 days. During fiscal 2022, the Group deviated from its customary credit terms and entered into a contractual deferred payment arrangement with a new significant customer. Under the agreement, the customer has provided the Group with collateral for the rolling credit facility (see note 15). However, the Group has not been able to obtain the valuations of the collateral. Accordingly, no value was assigned to the collateral when assessing the provision level of this customer. Return Rights The Group does not provide its customers with the right of return (except for product quality issue) or production protection. Customer is required to perform product quality check before acceptance of goods delivery. The Group did not recognize for any refund liability according to the product return on the consolidated balance sheets. Value-added taxes and surcharges The Group presents revenue net of VAT and surcharges incurred. The surcharge is sales related taxes representing the City Maintenance and Construction Tax and Education Surtax. The Group incurs expenses or pays fees to external delivery service providers, respectively, and records such expenses and fees like shipping and handling expenses. Total VAT and surcharges paid by the Group during the years ended March 31, 2021, 2022 and 2023 amounted to $121, $133 and $106 respectively. Principals vs. agent accounting The Group records all product revenue on a gross basis. To determine whether the Group is an agent or principal in the sale of products, the Group considers the following indicators: the Group is primarily responsible for fulfilling the promise to provide the specified goods or services, is subject to inventory risks before the specified goods have been transferred to a customer or after transfer of control to the customers, and has discretion in establishing the price of the specified goods. Disaggregation of revenue The Group disaggregates its revenue from different types of contracts with customers by principal product categories, as the Group believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See note 22 for product revenues by segment. Contract balances The Group did not recognize any contract asset as of March 31, 2022 and March 31, 2023. The timing between the recognition of revenue and receipt of payment is not significant. The Group’s contract liabilities consist of deposits received from customers. As of March 31, 2022 and March 31, 2023, the balances of the contract liabilities are $79 and nil Movement of contract liabilities are as follows: Year ended March 31, 2022 2023 $ $ At the beginning of the year 72 79 Deposits received 71 - Recognized as revenue (65 ) (78 ) Exchange 1 (1 ) At the end of the year 79 - (n) Retirement and other post-retirement benefits The Group operates a Mandatory Provident Fund (“MPF”) scheme for all qualifying employees in Hong Kong. The MPF is a defined contribution scheme and the assets of the scheme are managed by a trustee independent of the Group. The MPF is available to all employees aged 10 to 64 with a least 60 days of service under the employment of the Group in Hong Kong. Contributions are made by both the Group and the employee to a cap of HK$1,500 (equivalent to $0.19 per month) each by the Group and by the employee respectively. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $44, $48 and $52 for the years ended March 31, 2021, 2022 and 2023, respectively. Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiary of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $75, $102 and $90 for the years ended March 31, 2021, 2022 and 2023, respectively. The Group was required registration of its employee in Myanmar with the Social Security Board. Contributions are made by the Group to the social security plan at a rate of 3% based on each employee’s relevant compensation, subject to a cap of 9,000 Kyat (equivalent to $0.004) per month. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $6, $4 and $4 for the years ended March 31, 2021, 2022 and 2023, respectively. (o) Foreign currency translations and transactions Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rates prevailing on the transaction dates. The transaction date is the date on which the Group initially recognizes such non-monetary assets and liabilities. Non-monetary assets and liabilities that are stated at fair value are translated using the exchange rates prevailing at the dates the fair value is measured. The resulting exchange differences are recognized in accumulated other comprehensive income/loss. (o) Foreign currency translations and transactions Exchange rates used to translate amounts in Chinese Renminbi and Myanmar Kyat into the U.S. dollars, the reporting currency are as follows: Year ended March 31, 2021 2022 2023 Items in the consolidated statement of operations: Chinese Renminbi 6.83 6.44 6.83 Myanmar Kyat 1,365 1,729 1,995 As of March 31, 2022 2023 Balance sheet items, except for equity accounts Chinese Renminbi 6.35 6.86 Myanmar Kyat 1,768 2,103 Chinese Renminbi and Myanmar Kyat are not fully convertible currencies. Any restrictions on currency exchange may limit the Group’s ability to convert Chinese Renminbi and Myanmar Kyat into U.S. dollars or Hong Kong dollars or vice versa. (p) Income taxes The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest related to unrecognized tax benefits and penalties, if any, within income tax expenses. (q) Net (loss) income per share Diluted net (loss) income per share is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares pertaining to stock options and similar instruments had been issued and if the additional common shares were dilutive. Diluted net (loss) income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock and options, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). Anti-dilutive potential ordinary shares are not considered in the calculation of the diluted earnings per share. Potential ordinary shares are anti-dilutive when the conversion of ordinary shares increases the earnings per share or decreases the net loss per share. (r) Comprehensive (loss) income The Group presents the components of net (loss) income, the components of other comprehensive (loss) income and total comprehensive (loss) income in two separate but consecutive statements. (s) Fair value measurement and financial instruments ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The carrying amounts of financial instruments, which consist of cash and cash equivalents, time deposits, accounts receivable, other current assets, accounts payable and other liabilities approximate their fair values due to the short-term nature of these instruments. (t) Non-controlling interest On February 24, 2023, the Group’s non-wholly owned dormant subsidiary, Advanced Clean Innovation Asia (“ACIA”) Limited, was de-registered. Gain or loss on deregistration is calculated as follows: $ Net liability of ACIA as of April 1, 2022 (4 ) Share of 49% by non-controlling interest as of April 1, 2022 (2 ) Share of profit by non-controlling interest for the year ended March 31, 2023 2 Gain or loss on deregistration (0 ) (u) Stock-based compensation The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Valuation Model, and recognized as expenses (a) immediately at the grant date if no vesting conditions are required; and (b) for share options or restricted shares granted with only service conditions, using the straight-line vesting method, over the vesting period. The expected volatility was based on the historical volatilities of the Company’s listed common stocks in the United States and other relevant market information. The Group uses historical data to estimate share option exercises and employee departure behavior used in the valuation model. The expected terms of share options granted is derived from the output of the option pricing model and represents the period of time that share options granted are expected to be outstanding. Since the share options once exercised will primarily trade in the U.S. capital market, the risk-free rate for periods within the contractual term of the share option is based on the U.S. Treasury yield curve in effect at the time of grant. Details of grants of restricted shares to non-employee consultants after the effectiveness of ASU 2018-07 -Compensation - stock compensation (Topic 718) - Improvements to nonemployee share-based payment accounting are disclosed in note 21. (v) Leases The Group determines if a contract contains a lease based on whether it has the right to obtain substantially all of the economic benefits from the use of an identified asset which the Group does not own and whether it has the right to direct the use of an identified asset in exchange for consideration. Right of use (“ROU”) assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. ROU assets are recognized as the amount of the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Group’s incremental borrowing rate (“IBR”), because the interest rate implicit in most of the Group’s leases is not readily determinable. (v) Leases Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The Group recognized no impairment of ROU assets as of March 31, 2023 and March 31, 2022. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current in the consolidated balance sheets at March 31, 2023 and March 31, 2022. (w) Dividends (x) Government grants - (y) Commitments and contingencies - (z) Recently Adopted Accounting Standards In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The Company applied the new standard beginning April 1, 2022 and the adoption did not have a material impact on the Group’s consolidated financial statements (see note 12). (aa) Accounting standards issued but not adopted as of March 31, 2023 - (aa) Accounting standards issued but not adopted as of March 31, 2023 In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, that is intended to improve the accounting and disclosures for investments in tax credit structures. This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The adoption of ASU 2023-02 is not expected to have any impact on the Group’s consolidated financial statement presentation or disclosures. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 3. INCOME TAXES Income is subject to tax in the various countries in which the Group operates. No income tax arose in the United States of America in any of the periods presented. The Company is not taxed in the British Virgin Islands. The Group’s operating subsidiaries, other than Nissin Metal and Plastic (Shenzhen) Company Limited (“Nissin PRC”) and Kayser Myanmar Manufacturing Company Ltd. (“Kayser Myanmar”), are all incorporated in Hong Kong and are subject to Hong Kong taxation on income derived from their activities conducted in Hong Kong. Hong Kong Profits Tax has been calculated at 16.5% of the estimated assessable profit for the years ended March 31, 2021, 2022 and 2023. As of March 21, 2018, the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first HK$2 million (equivalent to $257) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%. Nissin PRC, which is established and operated in China, was subject to the uniform income tax rate of 25% in China. In March 2022, the State Taxation Administration of PRC issued an announcement and Nissin PRC satisfies the requirements of a “small-size, low profit” enterprise. Starting from January 1, 2022 and until December 31, 2024, Nissin PRC is eligible to enjoy a preferential income tax rate of 2.5% for the first 1 million Renminbi (“RMB”) assessable profit. Assessable profit above RMB 1 million is charged at 5%. The Group’s manufacturing operations were conducted mainly in Long Hua, Shenzhen and Yangon of Myanmar during the years ended March 31, 2021, 2022 and 2023. However, Kayser Myanmar enjoyed a tax exemption for the period from the date of incorporation through the end of December 31, 2017 and was subject to an income tax rate of 25% from January 1, 2018 to September 30, 2021. Starting from October 1, 2021 onwards, income tax rate was reduced to 22%. The components of (loss) income before income taxes are as follows: Year ended March 31, 2021 2022 2023 $ $ $ Hong Kong (233 ) 100 (1,065 ) China (458 ) 354 774 Myanmar 91 114 (22 ) (600 ) 568 (313 ) Income tax (credit) expense consists of the following: Year ended March 31, 2021 2022 2023 $ $ $ Current tax: Hong Kong Current tax 5 - - Under/(over) provision in prior year 7 (5 ) (12 ) China Current tax - - 1 Under/(over) provision in prior year - - - Myanmar Current tax - - - Under provision in prior year - - 3 Deferred tax (158 ) 106 (12 ) Total (146 ) 101 (20 ) A reconciliation between income taxes computed by applying the Hong Kong profits tax rate to profit/loss before income taxes, the income taxes are as follows: Year ended March 31, 2021 2022 2023 % % % Profits tax rate in Hong Kong 16.5 16.5 16.5 Non-deductible items/non-taxable income 25.5 30.8 15.9 Changes in valuation allowances (18.4 ) (1.9 ) 22.6 Overprovision of profits tax in prior year (1.1 ) (0.9 ) 2.9 Effect of different tax rate of subsidiaries operating in other jurisdictions 5.7 6.3 (18.8 ) Tax effect of tax losses not recognized 2.0 (4.4 ) (55.7 ) Tax effect of changes in tax rate - (3.7 ) - Utilization of tax losses previously not recognized (6.8 ) (3.7 ) - Others 0.9 (21.2 ) 23.0 Effective tax rate 24.3 17.8 6.4 Deferred income tax liabilities (assets) are as follows: As of March 31, 2022 2023 $ $ Deferred tax liabilities: Property, plant and equipment 4 5 Operating lease right-of-use assets 389 562 Total deferred tax liabilities 393 567 Deferred tax assets: Lease liabilities (256 ) (460 ) Tax loss carry forwards (491 ) (469 ) Valuation allowance 494 469 Total deferred tax assets (253 ) (460 ) Net deferred tax liabilities 140 107 Movement of valuation allowances are as follows: Year ended March 31, 2021 2022 2023 $ $ $ At the beginning of the year 552 593 494 Current year addition (reduction) 41 (99 ) (25 ) At the end of the year 593 494 469 A valuation allowance has been provided on the deferred tax asset because the Group believes it is not more than likely that the asset will be realized. As of March 31, 2022 and 2023, a valuation allowance was provided for the deferred tax asset relating to the future benefit of net operating loss carryforward and deferred deductible expenses, as the management determined that the net operating loss carryforward and deferred deductible expenses were not more likely than not to be utilized. If events occur in the future that allows the Group to realize more of its deferred tax assets than the presently recorded amount, an adjustment to the valuation allowance will be made when those events occur. As of March 31, 2022 and 2023, tax losses amounting to approximately $2,837 and $3,604, respectively. As of March 31, 2022 and 2023, the other tax losses carried forward of $2,562 and $3,604, respectively may be carried forward indefinitely. Uncertainties exist with respect to how China’s current income tax law applies to the Group’s overall operations, and more specifically, with regard to tax residency status. China’s Enterprise Income Tax (“EIT”) Law includes a provision specifying that legal entities organized outside of China will be considered residents for China income tax purposes if their place of effective management or control is within China. The Implementation Rules to the EIT Law provides that non-resident legal entities will be considered as China residents if substantial and overall management and control over the manufacturing and business operations, personnel, accounting, properties, etc. occur within China. The Company does not believe that its legal entities organized outside of China should be treated as residents for the EIT Law’s purposes. Substantially, the Company’s overall management and business operation are located outside China. The Company does not expect any significant adverse impact on the Company’s consolidated results of operations. The Group has made its assessment of the level of the tax authority for each tax position (including the potential application of interest and penalties) based on the technical merits and has measured the unrecognized tax benefits associated with the tax positions. Based on the evaluation by the Group, it was concluded that there are no significant uncertain tax positions requiring recognition in the consolidated financial statements. The Group classifies interest and/or penalties related to unrecognized tax benefits as a component of income tax provisions; however, as of March 31, 2022 and 2023, there is no interest and penalties related to uncertain tax positions, and the Group has no material unrecognized tax benefit which would favourably affect the effective income tax rate in future periods. The Group does not anticipate any significant increases or decreases to its liability for unrecognized tax benefit within the next twelve months. The fiscal years 2016 to 2023 remain subject to examination by the Hong Kong tax authority. For PRC, fiscal years 2013 to 2023 remain subject to examination by the PRC tax authority. For Myanmar, fiscal years 2021 to 2023 remain subject to examination by Myanmar tax authority. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following: As of March 31, 2022 2023 $ $ Cash on hand 49 48 Bank deposits 5,961 6,904 6,010 6,952 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net is analyzed as follows: As of March 31, 2022 2023 $ $ Accounts receivable 2,311 2,440 Less: allowance for expected credit losses (51 ) (554 ) Total accounts receivable, net 2,260 1,886 Details of the movements of the expected credit loss provision are as follows: Year ended March 31, 2021 2022 2023 $ $ $ At beginning of year - - 51 Provision for the year - 51 503 At end of year - 51 554 As of March 31, 2023, $28 of expected credit loss provision was related to an off-balance sheet exposure of a customer (2022: $8). |
Inventories, Net
Inventories, Net | 12 Months Ended |
Mar. 31, 2023 | |
Inventories, Net [Abstract] | |
INVENTORIES, NET | 6. INVENTORIES, NET Inventories consisted of the following: As of March 31, 2022 2023 $ $ Raw materials 1,578 1,043 Work in progress 417 149 Finished goods 355 221 2,350 1,413 Slow moving inventories amounting to $125, $89 and $67 were written off during the years ended March 31, 2021, 2022 and 2023, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of March 31, 2022 2023 $ $ Prepaid expenses 145 141 Payment in advance 154 164 Deposits 295 54 Other 26 47 620 406 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, NET | 8. PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of March 31, 2022 2023 $ $ At cost: Machinery and equipment 11,707 11,149 Furniture and fixtures 89 79 Leasehold improvements 1,086 822 Motor vehicles 168 163 Total 13,050 12,213 Less: Accumulated depreciation and impairment (12,407 ) (11,812 ) Property, plant and equipment, net 643 401 Depreciation expense incurred for the years ended March 31, 2021, 2022 and 2023 were $159, $162 and $209, respectively. No impairment of property, plant and equipment was recognized during the years ended March 31, 2021, 2022 and 2023, respectively. |
Investments in Equity Method In
Investments in Equity Method Investees | 12 Months Ended |
Mar. 31, 2023 | |
Investments in Equity Method Investees [Abstract] | |
INVESTMENTS IN EQUITY METHOD INVESTEES | 9. INVESTMENTS IN EQUITY METHOD INVESTEES The following table provides a reconciliation of the investments in equity method investees in the Group’s consolidated balance sheets as of March 31, 2022 and 2023 and the amount of underlying equity in net assets of the equity investees: As of March 31, 2022 2023 $ $ The Group’s proportionate share of equity in the net assets of equity investees 5 5 Less: Accumulated impairment losses recognized (5 ) (5 ) Investments in equity investees reported in the consolidated balance sheets - - As of March 31, 2022 and 2023, investment in equity method investees represented the 50% equity interest in Kayser Technik (Overseas) Inc. (K.T.I) (“Kayser Technik (Overseas)”), a company incorporated in Republic of Panama, which was formerly engaged in the trading of camera batteries, films, and disposable cameras. Kayser Technik (Overseas) was inactive, and the investment was fully impaired as of March 31, 2022 and 2023. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 10. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: As of March 31, 2022 2023 $ $ Accrued payroll 243 90 Accrued housing allowance 231 210 Accrued other social benefits 1,462 1,193 Deposits received from customers 79 - Accrued audit fee 200 205 Others 384 293 2,599 1,991 Accrued other social benefits represented the provision of employment termination payments based on management approved restructuring plan for relocating its manufacturing facilities based on China’s Labor laws. The restructuring plan is currently in process and expected to be completed within twelve months from March 31, 2023. The provision amount is reasonably estimated based on China’s Labor laws and management estimation of acceptance rate. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | 11. LEASES On March 21, 2023 , the Group entered into a lease agreement for executive and administrative offices in Hong Kong, under a three-year lease that expire in March 2026. On March 1, 2023, the Group entered into lease agreements for factory space and dormitories located in Shenzhen, China that expire in February 2026. On March 29, 2019, the Group entered into a lease agreement for factory space located in Yangon, Myanmar that expire in March 2069. The lease for the factory space has a term of 50 years, Kayser Myanmar has the option to extend the lease term for two consecutive 10-year terms on the same terms and conditions as in effect for the initial 50-year period. Kayer Myanmar is obligated under the lease to make monthly lease payment equal to 10 million Myanmar Kyat (equivalent to $4.8 per month as of March 31, 2023). During the year ended March 31, 2019, Kayser Myanmar has paid Konig Company $950 as prepaid rent under the lease, approximately 12 years of rental payments. 2021 2022 2023 $ $ $ Operating lease cost 731 * 871 * 888 * Weighted Average Remaining Lease Term - Operating leases 9.06 years 11.22 years 8.15 years Weighted Average Discount Rate - Operating leases 8.17 % 8.59 % 7.56 % * Included unconditional government subsidy $66, $ nil The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2023 Operating $ Year ending March 31, 2024 648 2025 665 2026 628 2027 - 2028 - Thereafter 2,164 Total undiscounted cash flows 4,105 Less: imputed interest (2,050 ) Present value of lease liabilities 2,055 |
Government Grants and Subsidies
Government Grants and Subsidies | 12 Months Ended |
Mar. 31, 2023 | |
Government Grants and Subsidies [Abstract] | |
GOVERNMENT GRANTS AND SUBSIDIES | 12. GOVERNMENT GRANTS AND SUBSIDIES Government subsidies received during the years ended March 31 2021, 2022 and 2023 are as follows. These subsidies are related to the relief for COVID-19 pandemic provided by governments and are accounted for in the consolidated statements of operations by offsetting the specific expenses when received. Year ended March 31, 2021 2022 2023 $ $ $ Rental payment for factory space and dormitories located in Shenzhen (offset against cost of sales) 66 - 247 Salaries of Hong Kong employees (offset against selling, general and administrative expenses) 144 - 62 Total 210 - 309 Rental payment subsidies in Shenzhen were granted by the People’s Government of Shenzhen Municipality. During the year ended March 31, 2023, 3-month waiver and 3-month 50% concession on rental payment for factory space and dormitories were granted. During the year ended March 31, 2021. 1-month waiver was granted. These subsidies were unconditional and non-recapturable, and were granted by directly reducing the payment amount in the rental invoices. Salaries subsidies in Hong Kong were provided by the Hong Kong government under the COVID-19 Employment Support Scheme for the Group’s employees employed by the subsidiaries in Hong Kong. During the year ended March 31, 2021, 6-month salaries were subsidized in the form of cash by the Hong Kong government, subject to a maximum subsidy of $1.2 per employee per month. During the year ended March 31, 2023, 3-month salaries were subsidized in the form of cash by the Hong Kong government, subject to a maximum subsidy of $1 per employee per month. The Company would be subject to penalties if certain criteria on number of employees employed were not met. |
Long-Term Loan Receivable
Long-Term Loan Receivable | 12 Months Ended |
Mar. 31, 2023 | |
Long-Term Loan Receivable [Abstract] | |
LONG-TERM LOAN RECEIVABLE | 13. LONG-TERM LOAN RECEIVABLE Long-term loan receivable represents loans to the managing director of a subsidiary with a fixed interest rate of 8% per annum and loan periods of 36 months, repayable by March 30, 2025 to March 30, 2026. The loan receivables principal and interest are expected to be repaid on the loan maturity date. Interest income of $8 was receivable for each of the years ended March 31, 2021, 2022 and 2023. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES As of March 31, 2022 and 2023, the Group did not have commitments for capital expenditure contracted for but not provided in the consolidated financial statements in respect of the acquisition of property, plant and equipment. |
Off-Balance Sheet Exposures
Off-Balance Sheet Exposures | 12 Months Ended |
Mar. 31, 2023 | |
Off-Balance Sheet Exposures [Abstract] | |
OFF-BALANCE SHEET EXPOSURES | 15. OFF-BALANCE SHEET EXPOSURES Pursuant to agreements signed in October 2020 and January 2021, the Group has extended a credit facility of $1,000 to a new customer for 30 months expiring on April 5, 2023. The agreement and the credit facility were extended for a further 24 months based on a promissory note signed on May 30, 2023 and that the outstanding balance as of March 31, 2023 will be repaid by July 31, 2023. This credit facility is collateralized by the intellectual property rights of the customer, personal guarantees of the shareholders of the customer and 10% of the common stock of the customer. As of March 31, 2023, the customer has utilized $737 (2022: $699) of the credit facility and the amount was reflected in accounts receivable. The Group has an off-balance sheet exposure of credit facility of $263 as of March 31, 2023 (2022: $301). The allowance for expected credit losses for the utilized credit facility and unutilized credit facility were $475 and $28 respectively, as of March 31, 2023 (2022: $18 and $8 respectively). Subsequently, this customer has fully settled the outstanding balance on July 6, 2023. |
Dividends
Dividends | 12 Months Ended |
Mar. 31, 2023 | |
Dividends [Abstract] | |
DIVIDENDS | 16. DIVIDENDS Dividends are recognized when declared. The Company declared two dividend payments during the fiscal year ended March 31, 2023: a dividend of $0.15 per share that was paid on October 7, 2022 and a dividend of $0.05 per share that was paid on January 5, 2023. The Company declared three dividend payments during the fiscal year ended March 31, 2022: a dividend of $0.06 per share that was paid on October 12, 2021, a dividend of $0.06 per share that was paid on November 24, 2021, and a dividend of $0.05 per share that was paid on April 8, 2022. The Company declared three dividend payments during the fiscal year ended March 31, 2021: a dividend of $0.10 per share that was paid on October 13, 2020, a dividend of $0.06 per share that was paid on November 25, 2020, and a dividend of $0.02 per share that was paid on April 8, 2021. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 12 Months Ended |
Mar. 31, 2023 | |
Concentrations of Credit Risk and Major Customers [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | 17. CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS The Group’s financial instruments that are exposed to concentrations of credit risk consist primarily of its cash and cash equivalents and accounts receivables. The Group’s cash and cash equivalents are high-quality deposits placed with authorized banking institutions. This investment policy limits the Group’s exposure to concentrations of credit risk. Accounts receivable from the four customers with the largest receivable balances or customers that individually comprised 10% or more of receivable balance as of March 31, 2022 and 2023 are as follows: Percentage of 2022 2023 % % Customer B 23.3 31.7 Customer A 30.3 30.2 Customer D 12.5 14.5 Customer C 22.0 14.1 Four largest receivable balances 88.1 90.5 A substantial percentage of the Group’s sales are made to three customers and are typically on an open account basis. Customers accounting for 10% or more of total revenue from contracts with customers in any of the years ended March 31, 2021, 2022 and 2023 are as follows: Year ended March 31, 2021 2022 2023 % % % Customer B (note a) 46.6 33.4 35.3 Customer C (note b) 25.9 26.5 33.0 Customer D (note a) 15.3 16.7 16.5 Customer E (note a) *** *** 10.0 87.8 76.6 94.8 Notes: (a) Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. (b) Sales to this customer was reported in the Metal Stamping operating segment. |
Foreign Currency Exchange Risk
Foreign Currency Exchange Risk | 12 Months Ended |
Mar. 31, 2023 | |
Foreign Currency Exchange Risk [Abstract] | |
FOREIGN CURRENCY EXCHANGE RISK | 18. FOREIGN CURRENCY EXCHANGE RISK The Group receives revenue primarily in U.S. dollars. Payments are made in U.S. dollars, Hong Kong dollars, Chinese Renminbi, Euro and Myanmar Kyat. Currency exchange rate fluctuations affect the Group’s operating costs, and also affect the price the Group receives for the products that it sells. Most of the Group’s net sales are to Europe. In order to mitigate the currency exchange rate risks related to changes in the value of the U.S. dollar, the Group has requested its European customers to pay in U.S. dollars, and in fiscal 2023, substantially all of the Group’s European customers did so. In addition, the Group has entered into agreements with certain of its larger European customers that permit the Group’s prices to be adjusted every three months to account for currency fluctuations. The Group does not utilize any form of financial hedging or option instruments to limit its exposure to exchange rate or material price fluctuations and has no current intentions to engage in such activities in the future. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Mar. 31, 2023 | |
Net (Loss) Income Per Share [Abstract] | |
NET (LOSS) INCOME PER SHARE | 19. NET (LOSS) INCOME PER SHARE The following table sets forth the computation of basic and diluted net (loss) income per share for years indicated: Year ended March 31, 2021 2022 2023 $ $ $ Net (loss) income attributable to Highway Holdings Limited’s shareholders, basic and diluted (461 ) 443 (294 ) Shares: Weighted average common shares used in computing basic net (loss) income per share 4,006,400 4,033,346 4,070,524 Dilutive stock option - 154,385 - Weighted average common shares used in computing diluted net (loss) income per share 4,006,400 4,187,731 4,070,524 Net (loss) income per share, basic (0.12 ) 0.11 (0.07 ) Net (loss) income per share, diluted (0.12 ) 0.11 (0.07 ) For the years ended March 31, 2021 and March 31, 2023 stock options to purchase 365,000 shares and 225,000 shares of the Company’s stock were excluded respectively from the EPS calculation, as their effects were anti-dilutive. |
Staff Retirement Plans
Staff Retirement Plans | 12 Months Ended |
Mar. 31, 2023 | |
Staff Retirement Plans [Abstract] | |
STAFF RETIREMENT PLANS | 20. STAFF RETIREMENT PLANS The Group operates a Mandatory Provident Fund (“MPF”) scheme for all qualifying employees in Hong Kong. The MPF is a defined contribution scheme and the assets of the scheme are managed by a trustee independent of the Group. The MPF is available to all employees aged 18 to 64 with at least 60 days of service under the employment of the Group in Hong Kong. Contributions are made by the Group to the MPF at a rate of 5% based on each employee’s relevant compensation, subject to a cap of HK$1,500 (equivalent to $0.19) per month. The Group’s full-time employees in China participate in a government-mandated multiemployer defined contribution plan pursuant to which certain medical care unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The China labor regulations require the Group to accrue for these benefits based on certain percentages of the employees’ salaries. No forfeited contributions may be used by the employer to reduce the existing level of contributions. Under the Social Security Schemes in Myanmar, the Group was required registration of its employees with the Social Security Board. Contributions are made by the Group to the social security plan at a rate of 3% based on each employee’s relevant compensation, subject to a cap of 9,000 Kyat (equivalent to $0.004) per month. There is no gratuity/end of service/pension entitlements stipulated under Myanmar law for private sector employees. Presently there is no pension plan required by Myanmar law compelling private sector employees or employers to make pension contributions. The Group does not provide additional private pension plans to its employees in Myanmar. The cost of the Group’s contribution to the staff retirement plans in Hong Kong, China and Myanmar amounted to $125, $154 and $146 for the years ended March 31, 2021, 2022 and 2023, respectively. |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 12 Months Ended |
Mar. 31, 2023 | |
Stock Options and Restricted Shares [Abstract] | |
STOCK OPTIONS AND RESTRICTED SHARES | 21. STOCK OPTIONS AND RESTRICTED SHARES The Group has adopted the “2010 Stock Option and Restricted Stock Plan” (the “2010 Option Plan”). Under the 2010 Option Plan, the Group is authorized to grant options, and to issue restricted shares, for a total of 600,000 shares. On August 8, 2019, the Board of Directors of the Company granted awards for a total of 585,000 shares of stock options and restricted shares under the Company’s 2010 Option Plan. The awards consisted of 160,000 non-qualified share options to 20 key employees, 250,000 non-qualified share options to 7 directors of the Company, including 60,000 options to the Company’s Chief Executive Officer and Chairman of the Board, and 175,000 restricted shares to 12 managers and key employees. The stock options are fully vested, have a five-year term, and an exercise price of $1.97 (the closing price of the Company’s common stock on August 7, 2019). The restricted shares granted will vest in five years, on August 8, 2024. In the event that any recipient’s employment with the Company or its subsidiaries is terminated before August 8, 2024, the Company will have the right to repurchase the restricted shares at a price of $0.01 per share. On June 20, 2020, the Board of Directors of the Company granted awards for a total of 40,000 shares options to two directors under the Company’s 2010 Option Plan. On June 20, 2020, the Group has adopted the “2020 Stock Option and Restricted Stock Plan” (the “2020 Option Plan”). Under the 2020 Option Plan, the Company is authorized to grant options, and to issue restricted shares, for a total of 500,000 shares. The 2020 Option Plan is administered by the Compensation Committee appointed by the Board of Directors, which determines the terms of the options granted, including the exercise price, the number of common shares subject to the option and the option’s exercisability. Unless otherwise specified by the Compensation Committee, the maximum term of options granted under the 2020 Option Plan is five years. No options have been granted under the 2020 Option Plan. On January 4, 2021, the Board of Directors granted awards for a total of 15,000 restricted shares at share price $4.12 to three consultants (5,000 restricted shares to each consultant) based in Germany under the 2020 Option Plan. The number of restricted shares to be vested will be based on the aggregate amount of qualified revenues brought by the consultants to the Group during the 3-year vesting period from January 4, 2021 to January 4, 2024. Stock Options Issued to Directors and Key Employees For the year ended March 31, 2020, 410,000 stock options were granted by the Company. The fair value of options granted to employees and directors in fiscal year 2020 was $0.33 per stock option, which was estimated on the date of grant using the Black-Scholes Option Valuation Model: 2020 Exercise price $ 1.97 Risk-free interest rate 1.66 % Expected life 2.5 years Expected volatility 41.83 % Expected dividend yield 8 % For the year ended March 31, 2021, 40,000 stock options were granted by the Company. The fair value of options granted to directors in fiscal year 2021 was $0.66 per stock option. It was estimated on the date of grant using the Black-Scholes Option Valuation Model: 2021 Exercise price $ 2.42 Risk-free interest rate 0.22 % Expected life 2.5 years Expected volatility 53.56 % Expected dividend yield 8 % No options were granted for the years ended March 31, 2022 and March 31, 2023. The expected volatility A summary of stock option activity during the years ended March 31, 2021, 2022 and 2023 is as follows: Number of Weighted Weighted Average remaining contractual life (years) $ Outstanding as of April 1, 2020 385,000 1.97 4.36 Granted 40,000 2.42 - Exercised (40,000 ) - - Cancelled (20,000 ) - - Outstanding as of March 31, 2021 365,000 1.97 3.36 Exercised (10,000 ) - - Cancelled (5,000 ) - - Outstanding as of March 31, 2022 350,000 1.97 2.36 Exercised (50,000 ) - - Cancelled (75,000 ) - - Outstanding as of March 31, 2023 225,000 1.97 1.36 Exercisable as of March 31, 2022 350,000 1.97 2.36 Exercisable as of March 31, 2023 225,000 1.97 1.36 The aggregate intrinsic values of the stock options outstanding as of March 31, 2022 and 2023 were $298 and $16, respectively. The intrinsic values of the stock options at March 31, 2022 and 2023 are the amount by which the market value of the Company’s common stock of $2.82 and $2.04 as of March 31, 2022 and 2023, respectively, exceeds the exercise price of the option. Restricted Shares Issued to Key Employees and Consultants For the year ended March 31, 2020, 175,000 restricted shares were granted to key employees under the 2010 Option Plan. The restricted shares will vest in five years. In the event that any recipient’s employment with the Group is terminated before August 8, 2024, the Company will have the right to repurchase the restricted shares at a price of $0.01 per share. For the year ended March 31, 2021, a total of 15,000 restricted shares were granted to three consultants under the 2020 Option Plan. The number of restricted shares to be vested will be based on the aggregate amount of qualified revenues brought by the consultants to the Group during the 3-year vesting period from January 4, 2021 to January 4, 2024. On condition that the qualified revenues at the end of the vesting period do not meet the pre-agreed target, the number of restricted shares to be vested will be in proportion to the actual qualified revenues to the pre-agreed target. The fair value of these shares was $4.12 based on the stock price per share on January 4, 2021, the date the awards were determined by the Compensation Committee of the Board. No restricted shares were granted for the years ended March 31, 2022 and March 31, 2023. The restricted shares granted under the 2010 Option Plan and the 2020 Option Plan resulted in a compensation expense of $73, $89 and $89 for the years ended March 31, 2021, 2022 and 2023 respectively, which is included in selling, general and administrative expenses. As of March 31, 2021, 2022 and 2023, there were respectively $287, $198 and $109 unrecognized compensation cost related to non-vested restricted shares granted under the 2010 Option Plan and the 2020 Option Plan. The cost was expected to be recognized over a weighted-average period of 3.36, 2.36 and 1.36 years respectively. As of March 31, 2021, 2022 and 2023, the Company has the right to repurchase 190,000, 190,000 and 190,000 restricted shares respectively at a price of $0.01 per share when restricted shares be forfeited and reconveyed to the Company. |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2023 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | 22. SEGMENT INFORMATION The Group’s chief operating decision maker, who has been identified as the Company’s Chief Executive Officer, evaluates segment performance and allocates resources based on several factors, of which the primary financial measure is operating income. The Group operates in two segments, Metal stamping and mechanical OEM segment and Electric OEM segment. The Metal stamping and mechanical OEM segment focus on manufacturing and sale of metal parts and components. The Electric OEM segment focuses on manufacturing and sale of plastic and electronic parts and components. Corporate represented expenses that are not allocated to reportable segments and other corporate items. A summary of the revenue from contracts with customers, profitability information and asset information by segment and geographical areas is shown below: Year ended March 31, 2021 2022 2023 $ $ $ Revenue from contracts with customers: Metal stamping and Mechanical OEM 5,192 7,213 6,654 Electric OEM 3,976 5,152 3,588 Total revenue from contracts with customers 9,168 12,365 10,242 Operating (loss) income: Metal stamping and Mechanical OEM (327 ) 339 (212 ) Electric OEM (207 ) 307 (95 ) Corporate (82 ) (79 ) (170 ) Total operating income (loss) (616 ) 567 (477 ) Depreciation expense: Metal stamping and Mechanical OEM 90 95 137 Electric OEM 69 67 72 Total depreciation 159 162 209 Capital expenditure: Metal stamping and Mechanical OEM 50 78 60 Electric OEM 38 56 32 Total capital expenditure 88 134 92 As of March 31, 2022 2023 $ $ Total assets: Metal stamping and Mechanical OEM 7,784 8,099 Electric OEM 6,961 5,696 Corporate 114 88 Total assets 14,859 13,883 As of March 31, 2022 2023 $ $ Property, plant and equipment, net: Metal stamping and Mechanical OEM 380 266 Electric OEM 263 135 Total property, plant and equipment, net 643 401 All of the Group’s sales are coordinated through its head office in Hong Kong. The Group considers revenues to be generated by geographic area based on the physical location of customers. t Year ended March 31, 2021 2022 2023 $ $ $ Revenue from contracts with customers: Hong Kong and China 1,554 2,105 1,510 Europe 7,269 8,761 8,268 Other Asian countries 37 76 27 North America 308 1,423 437 Total revenue from contracts with customers 9,168 12,365 10,242 All of the Group’s property, plant and equipment are located in Hong Kong, China and Myanmar. The breakdown by geographic area is as follows: As of March 31, 2022 2023 $ $ Property, plant and equipment, net: Hong Kong and China 128 110 Myanmar 515 291 Total property, plant and equipment, net 643 401 |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transaction [Abstract] | |
RELATED PARTY TRANSACTION | 23. RELATED PARTY TRANSACTION There are no material related party transactions for the years ended March 31, 2021, 2022 and 2023. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 24. SUBSEQUENT EVENT The Group has evaluated events from the year ended March 31, 2023 through the date the financial statements were issued. The following subsequent event is disclosed. On May 13, 2023, Mr. Roland Kohl, the Chief Executive Officer of the Group, was granted 300,000 shares of restricted shares under the Group’s 2020 Stock Option and Restricted Stock Plan. The restricted shares award granted to Mr. Roland Kohl is subject to vesting in tranches upon the Group’s achievement of certain strategic transactions within five years from the date the shares were granted, and any shares not vested by the five-year anniversary of the date of grant or upon termination of Mr. Roland Kohl’s employment with the Group shall be forfeited and reconveyed to the Group. The restricted shares vest in three (3) tranches, with 100,000 of the shares vesting in two tranches, and all of the unvested shares vesting in one tranche. Each tranche vests upon completion of a certain milestone by the Group relating to the consummation by the Group or its subsidiaries of certain strategic transactions within five (5) years from the date of grant. The independent members of the Board shall have the final determination as to whether the Group has achieved any of the share release milestones. These restricted shares are fully issued as of July 13, 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of consolidation | (a) Principles of consolidation |
Use of estimates | (b) Use of estimates The COVID-19 pandemic and the political unrest in Myanmar have created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business slowdowns and adversely impact the Group’s results of operations. For COVID-19 pandemic, its impact on the Group was generally less significant when compared to previous years. However, any new events or policies on COVID-19 pandemic may affect the Group’s operations in the future. (b) Use of estimates |
Investments under equity method | (c) Investments under equity method When the estimated amount to be realized from the investments falls below its carrying value, an impairment charge is recognized in the consolidated statements of operations when the decline in value is considered other than temporary. |
Cash and cash equivalents | (d) Cash and cash equivalents Cash equivalents are placed with financial institutions with credit ratings and quality where the Group considers acceptable. |
Time deposits | (e) Time deposits |
Accounts receivable | (f) Accounts receivable - (f) Accounts receivable To estimate expected credit losses, the Group has identified the relevant risk characteristics of its customers and the related receivables, other current assets (note 7) and loan receivables which include size, type of the services or the products the Group provides, or a combination of these characteristics. Receivables with similar risk characteristics have been grouped into pools. For each pool, the Group considers the past collection experience, current economic conditions, future economic conditions (external data and macroeconomic factors) and changes in the Group’s customer collection trends. Other key factors that influence the expected credit loss analysis include customer demographics, payment terms offered in the normal course of business to customers, and industry-specific factors that could impact the Group’s receivables. Additionally, external data and macroeconomic factors are also considered. This is assessed at each quarter based on the Group’s specific facts and circumstances. No significant impact of changes in the assumptions since adoption. As of March 31, 2023, the expected credit loss provision recorded in accounts receivable was $554 (2022: $51). |
Loan receivables | (g) Loan receivables |
Inventories | (h) Inventories |
Goodwill | (i) Goodwill No impairment expenses were recognized during the years ended March 31, 2021, 2022 and 2023. |
Property, plant and equipment | (j) Property, plant and equipment The cost and accumulated depreciation of property, plant and equipment disposed of or sold are removed from the consolidated balance sheets and resulting gains and losses are recognized in the consolidated statements of operations. |
Impairment or disposal of long-lived assets (other than goodwill) | (k) Impairment or disposal of long-lived assets (other than goodwill) - During the years ended 2021, 2022 and 2023, the Group has reviewed the long-lived assets for impairment, since there are several indicative events and factors identified, including (1) significant adverse changes in the business climate, including the possible negative impact of political unrest in Myanmar, (2) operating and/or cash flow losses, and (3) negative impact on business operations as a result of COVID-19 pandemic and new global human and environmental rights regulations pending or enacted. Management has compared the carrying value of the long-lived asset to the estimated undiscounted operating cash flow based on the above factors. (k) Impairment or disposal of long-lived assets (other than goodwill) |
Concentration of credit risk | (l) Concentration of credit risk The risks with respect to accounts receivables are mitigated by credit evaluations performed on the customers or debtors and ongoing monitoring of outstanding balances. |
Revenue recognition | (m) Revenue recognition The Group’s revenue from contracts with customers is derived from product revenue principally from the sales of metal stamping and mechanical OEM and electric OEM products directly to other consumer electronics product manufacturers and from the provision of machinery maintenance services. Product revenue recognition – point of time The Group sell goods to the customer under sales contracts or by purchase orders. The Group has determined there to be one performance obligation for each of the sales contracts and purchase orders. The performance obligations are considered to be met and revenue is recognized when the customer obtains control of the goods. Revenue is recognized at that point of time. The Group has two major goods delivery channels, included: (1) Delivering goods to customers’ predetermined location, the Group has satisfied the contracts’ performance obligations when the goods have been delivered and relevant shipping documents have been collected by the Group; and (2) Picking up goods by customers in the Group’s warehouse, the Group has satisfied the contracts’ performance obligations when the goods have been picked up and the acceptance document has been signed by the customers. Service revenue recognition – over time The Group also provides machinery maintenance services to customers, where revenue is recognized over time. The Group did not recognize any revenue from contracts with customers for performance obligations satisfied over time during the year ended March 31, 2021. The Group recognized certain revenue from contracts with customers for performance obligations satisfied over time, consisting principally of machinery maintenance service income, during the years ended March 31, 2022 and 2023. Breakdown of revenue recognition by product line is as follows: Year ended March 31, 2021 2022 2023 $ $ $ Sale of products 9,168 12,351 10,201 Maintenance service income - 14 41 9,168 12,365 10,242 Breakdown of revenue recognition at a point of time / over time is as follows: Year ended March 31, 2021 2022 2023 $ $ $ Revenue recognized at a point of time 9,168 12,351 10,201 Revenue recognized over time - 14 41 9,168 12,365 10,242 The Group would request a deposit from certain customers upon receiving the purchase order and issue bills to customers upon transfer control of goods and relevant acceptance documents have been collected. Customers’ deposits would be settled part of the outstanding bill upon receiving an acknowledgement from customers. For the remaining balance of outstanding bills, Customers are required to pay over an agreed upon credit period, usually between 30 to 75 days. During fiscal 2022, the Group deviated from its customary credit terms and entered into a contractual deferred payment arrangement with a new significant customer. Under the agreement, the customer has provided the Group with collateral for the rolling credit facility (see note 15). However, the Group has not been able to obtain the valuations of the collateral. Accordingly, no value was assigned to the collateral when assessing the provision level of this customer. Return Rights The Group does not provide its customers with the right of return (except for product quality issue) or production protection. Customer is required to perform product quality check before acceptance of goods delivery. The Group did not recognize for any refund liability according to the product return on the consolidated balance sheets. Value-added taxes and surcharges The Group presents revenue net of VAT and surcharges incurred. The surcharge is sales related taxes representing the City Maintenance and Construction Tax and Education Surtax. The Group incurs expenses or pays fees to external delivery service providers, respectively, and records such expenses and fees like shipping and handling expenses. Total VAT and surcharges paid by the Group during the years ended March 31, 2021, 2022 and 2023 amounted to $121, $133 and $106 respectively. Principals vs. agent accounting The Group records all product revenue on a gross basis. To determine whether the Group is an agent or principal in the sale of products, the Group considers the following indicators: the Group is primarily responsible for fulfilling the promise to provide the specified goods or services, is subject to inventory risks before the specified goods have been transferred to a customer or after transfer of control to the customers, and has discretion in establishing the price of the specified goods. Disaggregation of revenue The Group disaggregates its revenue from different types of contracts with customers by principal product categories, as the Group believes it best depicts the nature, amount, timing and uncertainty of its revenue and cash flows. See note 22 for product revenues by segment. Contract balances The Group did not recognize any contract asset as of March 31, 2022 and March 31, 2023. The timing between the recognition of revenue and receipt of payment is not significant. The Group’s contract liabilities consist of deposits received from customers. As of March 31, 2022 and March 31, 2023, the balances of the contract liabilities are $79 and nil Movement of contract liabilities are as follows: Year ended March 31, 2022 2023 $ $ At the beginning of the year 72 79 Deposits received 71 - Recognized as revenue (65 ) (78 ) Exchange 1 (1 ) At the end of the year 79 - |
Retirement and other post-retirement benefits | (n) Retirement and other post-retirement benefits The Group operates a Mandatory Provident Fund (“MPF”) scheme for all qualifying employees in Hong Kong. The MPF is a defined contribution scheme and the assets of the scheme are managed by a trustee independent of the Group. The MPF is available to all employees aged 10 to 64 with a least 60 days of service under the employment of the Group in Hong Kong. Contributions are made by both the Group and the employee to a cap of HK$1,500 (equivalent to $0.19 per month) each by the Group and by the employee respectively. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $44, $48 and $52 for the years ended March 31, 2021, 2022 and 2023, respectively. Full time employees of the Group in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require that the PRC subsidiary of the Group make contributions to the government for these benefits based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government. The Group has no legal obligation for the benefits beyond the contributions made. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $75, $102 and $90 for the years ended March 31, 2021, 2022 and 2023, respectively. The Group was required registration of its employee in Myanmar with the Social Security Board. Contributions are made by the Group to the social security plan at a rate of 3% based on each employee’s relevant compensation, subject to a cap of 9,000 Kyat (equivalent to $0.004) per month. Total amounts of such employee benefit expenses, which were expensed as incurred, were approximately $6, $4 and $4 for the years ended March 31, 2021, 2022 and 2023, respectively. |
Foreign currency translations and transactions | (o) Foreign currency translations and transactions Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rates prevailing on the transaction dates. The transaction date is the date on which the Group initially recognizes such non-monetary assets and liabilities. Non-monetary assets and liabilities that are stated at fair value are translated using the exchange rates prevailing at the dates the fair value is measured. The resulting exchange differences are recognized in accumulated other comprehensive income/loss. (o) Foreign currency translations and transactions Exchange rates used to translate amounts in Chinese Renminbi and Myanmar Kyat into the U.S. dollars, the reporting currency are as follows: Year ended March 31, 2021 2022 2023 Items in the consolidated statement of operations: Chinese Renminbi 6.83 6.44 6.83 Myanmar Kyat 1,365 1,729 1,995 As of March 31, 2022 2023 Balance sheet items, except for equity accounts Chinese Renminbi 6.35 6.86 Myanmar Kyat 1,768 2,103 Chinese Renminbi and Myanmar Kyat are not fully convertible currencies. Any restrictions on currency exchange may limit the Group’s ability to convert Chinese Renminbi and Myanmar Kyat into U.S. dollars or Hong Kong dollars or vice versa. |
Income taxes | (p) Income taxes The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Group records interest related to unrecognized tax benefits and penalties, if any, within income tax expenses. |
Net (loss) income per share | (q) Net (loss) income per share Diluted net (loss) income per share is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if all the potential common shares pertaining to stock options and similar instruments had been issued and if the additional common shares were dilutive. Diluted net (loss) income per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method for the outstanding unvested restricted stock and options, and the if-converted method for the outstanding convertible instruments. Under the treasury stock method, options are assumed to be exercised at the beginning of the period (or at the time of issuance, if later) and as if funds obtained thereby were used to purchase common stock at the average market price during the period. Under the if-converted method, outstanding convertible instruments are assumed to be converted into common stock at the beginning of the period (or at the time of issuance, if later). Anti-dilutive potential ordinary shares are not considered in the calculation of the diluted earnings per share. Potential ordinary shares are anti-dilutive when the conversion of ordinary shares increases the earnings per share or decreases the net loss per share. |
Comprehensive (loss) income | (r) Comprehensive (loss) income The Group presents the components of net (loss) income, the components of other comprehensive (loss) income and total comprehensive (loss) income in two separate but consecutive statements. |
Fair value measurement and financial instruments | (s) Fair value measurement and financial instruments ● Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. ● Level 2 applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical asset or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. ● Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Determining which category an asset or liability falls within the hierarchy requires significant judgment. The carrying amounts of financial instruments, which consist of cash and cash equivalents, time deposits, accounts receivable, other current assets, accounts payable and other liabilities approximate their fair values due to the short-term nature of these instruments. |
Non-controlling interest | (t) Non-controlling interest |
Stock-based compensation | (u) Stock-based compensation The fair value of each option award is estimated on the date of grant using the Black-Scholes Option Valuation Model, and recognized as expenses (a) immediately at the grant date if no vesting conditions are required; and (b) for share options or restricted shares granted with only service conditions, using the straight-line vesting method, over the vesting period. The expected volatility was based on the historical volatilities of the Company’s listed common stocks in the United States and other relevant market information. The Group uses historical data to estimate share option exercises and employee departure behavior used in the valuation model. The expected terms of share options granted is derived from the output of the option pricing model and represents the period of time that share options granted are expected to be outstanding. Since the share options once exercised will primarily trade in the U.S. capital market, the risk-free rate for periods within the contractual term of the share option is based on the U.S. Treasury yield curve in effect at the time of grant. Details of grants of restricted shares to non-employee consultants after the effectiveness of ASU 2018-07 -Compensation - stock compensation (Topic 718) - Improvements to nonemployee share-based payment accounting are disclosed in note 21. |
Leases | (v) Leases The Group determines if a contract contains a lease based on whether it has the right to obtain substantially all of the economic benefits from the use of an identified asset which the Group does not own and whether it has the right to direct the use of an identified asset in exchange for consideration. Right of use (“ROU”) assets represent the Group’s right to use an underlying asset for the lease term and lease liabilities represent the Group’s obligation to make lease payments arising from the lease. ROU assets are recognized as the amount of the lease liability, adjusted for lease incentives received. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the Group’s incremental borrowing rate (“IBR”), because the interest rate implicit in most of the Group’s leases is not readily determinable. (v) Leases Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred. The Group recognized no impairment of ROU assets as of March 31, 2023 and March 31, 2022. The operating lease is included in operating lease right-of-use assets, operating lease liabilities-current and operating lease liabilities-non-current in the consolidated balance sheets at March 31, 2023 and March 31, 2022. |
Dividends | (w) Dividends |
Government grants | (x) Government grants - |
Commitments and contingencies | (y) Commitments and contingencies - |
Recently Adopted Accounting Standards | (z) Recently Adopted Accounting Standards In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. The Company applied the new standard beginning April 1, 2022 and the adoption did not have a material impact on the Group’s consolidated financial statements (see note 12). (aa) Accounting standards issued but not adopted as of March 31, 2023 - (aa) Accounting standards issued but not adopted as of March 31, 2023 In March 2023, the FASB issued ASU No. 2023-02, Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method, that is intended to improve the accounting and disclosures for investments in tax credit structures. This ASU allows reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The adoption of ASU 2023-02 is not expected to have any impact on the Group’s consolidated financial statement presentation or disclosures. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of revenue recognition by product line | Year ended March 31, 2021 2022 2023 $ $ $ Sale of products 9,168 12,351 10,201 Maintenance service income - 14 41 9,168 12,365 10,242 |
Schedule of revenue recognition at a point of time | Year ended March 31, 2021 2022 2023 $ $ $ Revenue recognized at a point of time 9,168 12,351 10,201 Revenue recognized over time - 14 41 9,168 12,365 10,242 |
Schedule of movement of contract liabilities | Year ended March 31, 2022 2023 $ $ At the beginning of the year 72 79 Deposits received 71 - Recognized as revenue (65 ) (78 ) Exchange 1 (1 ) At the end of the year 79 - |
Schedule of consolidated statement of operations | Year ended March 31, 2021 2022 2023 Items in the consolidated statement of operations: Chinese Renminbi 6.83 6.44 6.83 Myanmar Kyat 1,365 1,729 1,995 |
Schedule of balance sheet items, except for equity accounts | As of March 31, 2022 2023 Balance sheet items, except for equity accounts Chinese Renminbi 6.35 6.86 Myanmar Kyat 1,768 2,103 |
Schedule of gain or loss on deregistration | $ Net liability of ACIA as of April 1, 2022 (4 ) Share of 49% by non-controlling interest as of April 1, 2022 (2 ) Share of profit by non-controlling interest for the year ended March 31, 2023 2 Gain or loss on deregistration (0 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before income taxes | Year ended March 31, 2021 2022 2023 $ $ $ Hong Kong (233 ) 100 (1,065 ) China (458 ) 354 774 Myanmar 91 114 (22 ) (600 ) 568 (313 ) |
Schedule of income tax (credit) expense | Year ended March 31, 2021 2022 2023 $ $ $ Current tax: Hong Kong Current tax 5 - - Under/(over) provision in prior year 7 (5 ) (12 ) China Current tax - - 1 Under/(over) provision in prior year - - - Myanmar Current tax - - - Under provision in prior year - - 3 Deferred tax (158 ) 106 (12 ) Total (146 ) 101 (20 ) |
Schedule of effective income tax rate reconciliation | Year ended March 31, 2021 2022 2023 % % % Profits tax rate in Hong Kong 16.5 16.5 16.5 Non-deductible items/non-taxable income 25.5 30.8 15.9 Changes in valuation allowances (18.4 ) (1.9 ) 22.6 Overprovision of profits tax in prior year (1.1 ) (0.9 ) 2.9 Effect of different tax rate of subsidiaries operating in other jurisdictions 5.7 6.3 (18.8 ) Tax effect of tax losses not recognized 2.0 (4.4 ) (55.7 ) Tax effect of changes in tax rate - (3.7 ) - Utilization of tax losses previously not recognized (6.8 ) (3.7 ) - Others 0.9 (21.2 ) 23.0 Effective tax rate 24.3 17.8 6.4 |
Schedule of deferred income tax liabilities (assets) | As of March 31, 2022 2023 $ $ Deferred tax liabilities: Property, plant and equipment 4 5 Operating lease right-of-use assets 389 562 Total deferred tax liabilities 393 567 Deferred tax assets: Lease liabilities (256 ) (460 ) Tax loss carry forwards (491 ) (469 ) Valuation allowance 494 469 Total deferred tax assets (253 ) (460 ) Net deferred tax liabilities 140 107 |
Schedule of valuation allowance | Year ended March 31, 2021 2022 2023 $ $ $ At the beginning of the year 552 593 494 Current year addition (reduction) 41 (99 ) (25 ) At the end of the year 593 494 469 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of March 31, 2022 2023 $ $ Cash on hand 49 48 Bank deposits 5,961 6,904 6,010 6,952 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | As of March 31, 2022 2023 $ $ Accounts receivable 2,311 2,440 Less: allowance for expected credit losses (51 ) (554 ) Total accounts receivable, net 2,260 1,886 |
Schedule of movements of the expected credit loss provision | Year ended March 31, 2021 2022 2023 $ $ $ At beginning of year - - 51 Provision for the year - 51 503 At end of year - 51 554 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Inventories, Net [Abstract] | |
Schedule of inventories | As of March 31, 2022 2023 $ $ Raw materials 1,578 1,043 Work in progress 417 149 Finished goods 355 221 2,350 1,413 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses And Other Current Assets Disclosure Abstract | |
Schedule of prepaid expenses and other current assets | As of March 31, 2022 2023 $ $ Prepaid expenses 145 141 Payment in advance 154 164 Deposits 295 54 Other 26 47 620 406 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of property, plant and equipment, net | As of March 31, 2022 2023 $ $ At cost: Machinery and equipment 11,707 11,149 Furniture and fixtures 89 79 Leasehold improvements 1,086 822 Motor vehicles 168 163 Total 13,050 12,213 Less: Accumulated depreciation and impairment (12,407 ) (11,812 ) Property, plant and equipment, net 643 401 |
Investments in Equity Method _2
Investments in Equity Method Investees (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Investments in Equity Method Investees [Abstract] | |
Schedule of investments in equity method investees | As of March 31, 2022 2023 $ $ The Group’s proportionate share of equity in the net assets of equity investees 5 5 Less: Accumulated impairment losses recognized (5 ) (5 ) Investments in equity investees reported in the consolidated balance sheets - - |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accrued Expenses and Other Current Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | As of March 31, 2022 2023 $ $ Accrued payroll 243 90 Accrued housing allowance 231 210 Accrued other social benefits 1,462 1,193 Deposits received from customers 79 - Accrued audit fee 200 205 Others 384 293 2,599 1,991 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of supplemental information related to operating leases | 2021 2022 2023 $ $ $ Operating lease cost 731 * 871 * 888 * Weighted Average Remaining Lease Term - Operating leases 9.06 years 11.22 years 8.15 years Weighted Average Discount Rate - Operating leases 8.17 % 8.59 % 7.56 % * Included unconditional government subsidy $66, $ nil |
Schedule of maturities of lease liabilities | Operating $ Year ending March 31, 2024 648 2025 665 2026 628 2027 - 2028 - Thereafter 2,164 Total undiscounted cash flows 4,105 Less: imputed interest (2,050 ) Present value of lease liabilities 2,055 |
Government Grants and Subsidi_2
Government Grants and Subsidies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Government Grants and Subsidies [Abstract] | |
Schedule of government subsidies received | Year ended March 31, 2021 2022 2023 $ $ $ Rental payment for factory space and dormitories located in Shenzhen (offset against cost of sales) 66 - 247 Salaries of Hong Kong employees (offset against selling, general and administrative expenses) 144 - 62 Total 210 - 309 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of accounts receivable | Percentage of 2022 2023 % % Customer B 23.3 31.7 Customer A 30.3 30.2 Customer D 12.5 14.5 Customer C 22.0 14.1 Four largest receivable balances 88.1 90.5 |
Schedule of revenue by major customers by reporting segments | Year ended March 31, 2021 2022 2023 % % % Customer B (note a) 46.6 33.4 35.3 Customer C (note b) 25.9 26.5 33.0 Customer D (note a) 15.3 16.7 16.5 Customer E (note a) *** *** 10.0 87.8 76.6 94.8 (a) Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. (b) Sales to this customer was reported in the Metal Stamping operating segment. |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Net (Loss) Income Per Share [Abstract] | |
Schedule of basic and diluted net (loss) income per share | Year ended March 31, 2021 2022 2023 $ $ $ Net (loss) income attributable to Highway Holdings Limited’s shareholders, basic and diluted (461 ) 443 (294 ) Shares: Weighted average common shares used in computing basic net (loss) income per share 4,006,400 4,033,346 4,070,524 Dilutive stock option - 154,385 - Weighted average common shares used in computing diluted net (loss) income per share 4,006,400 4,187,731 4,070,524 Net (loss) income per share, basic (0.12 ) 0.11 (0.07 ) Net (loss) income per share, diluted (0.12 ) 0.11 (0.07 ) |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Stock Options and Restricted Shares [Abstract] | |
Schedule of fair value options granted | 2020 Exercise price $ 1.97 Risk-free interest rate 1.66 % Expected life 2.5 years Expected volatility 41.83 % Expected dividend yield 8 % 2021 Exercise price $ 2.42 Risk-free interest rate 0.22 % Expected life 2.5 years Expected volatility 53.56 % Expected dividend yield 8 % |
Schedule of stock option activity | Number of Weighted Weighted Average remaining contractual life (years) $ Outstanding as of April 1, 2020 385,000 1.97 4.36 Granted 40,000 2.42 - Exercised (40,000 ) - - Cancelled (20,000 ) - - Outstanding as of March 31, 2021 365,000 1.97 3.36 Exercised (10,000 ) - - Cancelled (5,000 ) - - Outstanding as of March 31, 2022 350,000 1.97 2.36 Exercised (50,000 ) - - Cancelled (75,000 ) - - Outstanding as of March 31, 2023 225,000 1.97 1.36 Exercisable as of March 31, 2022 350,000 1.97 2.36 Exercisable as of March 31, 2023 225,000 1.97 1.36 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Information [Abstract] | |
Schedule of segment reporting information | Year ended March 31, 2021 2022 2023 $ $ $ Revenue from contracts with customers: Metal stamping and Mechanical OEM 5,192 7,213 6,654 Electric OEM 3,976 5,152 3,588 Total revenue from contracts with customers 9,168 12,365 10,242 Operating (loss) income: Metal stamping and Mechanical OEM (327 ) 339 (212 ) Electric OEM (207 ) 307 (95 ) Corporate (82 ) (79 ) (170 ) Total operating income (loss) (616 ) 567 (477 ) Depreciation expense: Metal stamping and Mechanical OEM 90 95 137 Electric OEM 69 67 72 Total depreciation 159 162 209 Capital expenditure: Metal stamping and Mechanical OEM 50 78 60 Electric OEM 38 56 32 Total capital expenditure 88 134 92 As of March 31, 2022 2023 $ $ Total assets: Metal stamping and Mechanical OEM 7,784 8,099 Electric OEM 6,961 5,696 Corporate 114 88 Total assets 14,859 13,883 As of March 31, 2022 2023 $ $ Property, plant and equipment, net: Metal stamping and Mechanical OEM 380 266 Electric OEM 263 135 Total property, plant and equipment, net 643 401 |
Schedule of geographical segment | Year ended March 31, 2021 2022 2023 $ $ $ Revenue from contracts with customers: Hong Kong and China 1,554 2,105 1,510 Europe 7,269 8,761 8,268 Other Asian countries 37 76 27 North America 308 1,423 437 Total revenue from contracts with customers 9,168 12,365 10,242 As of March 31, 2022 2023 $ $ Property, plant and equipment, net: Hong Kong and China 128 110 Myanmar 515 291 Total property, plant and equipment, net 643 401 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Expected credit loss provision | $ 554 | $ 51 | ||
Fixed interest rate | 8% | |||
VAT and surcharges | $ 133 | $ 121 | $ 106 | |
Contract liabilities | $ 79 | |||
Contribution decription | Contributions are made by both the Group and the employee to a cap of HK$1,500 (equivalent to $0.19 per month) each by the Group and by the employee respectively. | |||
Employee benefit expenses | $ 52 | $ 48 | 44 | |
Income tax, description | The Group recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. | |||
Mandatory Provident Fund [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Employee benefit expenses | $ 90 | 102 | 75 | |
Kayser Myanmar [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Employee benefit expenses | $ 4 | $ 4 | $ 6 | |
Machinery and Equipment [Member] | Minimum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 5 years | |||
Machinery and Equipment [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 10 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 2 years | |||
Leasehold Improvements [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of revenue recognition by product line - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Revenue Recognition By Product Line Abstract | |||
Sale of products | $ 10,201 | $ 12,351 | $ 9,168 |
Maintenance service income | 41 | 14 | |
Total revenue recognition | $ 10,242 | $ 12,365 | $ 9,168 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of revenue recognition at a point of time - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Revenue Recognition At APoint Of Time Abstract | |||
Revenue recognized at a point of time | $ 10,201 | $ 12,351 | $ 9,168 |
Revenue recognized over time | 41 | 14 | |
Total revenue | $ 10,242 | $ 12,365 | $ 9,168 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of movement of contract liabilities - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of movement of contract liabilities [Abstract] | ||
At the beginning of the year | $ 79 | $ 72 |
Deposits received | 71 | |
Recognized as revenue | (78) | (65) |
Exchange | (1) | 1 |
At the end of the year | $ 79 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of consolidated statement of operations - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of consolidated statement of operations [Abstract] | |||
Chinese Renminbi | $ 6.83 | $ 6.44 | $ 6.83 |
Myanmar Kyat | $ 1,995 | $ 1,729 | $ 1,365 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of balance sheet items, except for equity accounts - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Balance sheet items, except for equity accounts | ||
Chinese Renminbi | $ 6.86 | $ 6.35 |
Myanmar Kyat | $ 2,103 | $ 1,768 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies (Details) - Schedule of gain or loss on deregistration - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Apr. 01, 2022 | |
Schedule of gain or loss on deregistration [Abstract] | ||
Net liability of ACIA as of April 1, 2022 | $ (4) | |
Share of 49% by non-controlling interest as of April 1, 2022 | $ (2) | |
Share of profit by non-controlling interest for the year ended March 31, 2023 | $ 2 | |
Gain or loss on deregistration | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies (Details) - Schedule of gain or loss on deregistration (Parentheticals) | Apr. 01, 2022 |
Schedule of gain or loss on deregistration [Abstract] | |
Share of non-controlling interest | 49% |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands, ¥ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 21, 2018 | Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 | Mar. 31, 2023 USD ($) | |
Income Taxes (Details) [Line Items] | |||||
Income tax, description | the Hong Kong Legislative Council passed The Inland Revenue (Amendment) (No. 7) Bill 2017 (the “Bill”) which introduces the two-tiered profits tax rates regime. The Bill was signed into law on March 28, 2018 and was gazetted on the following day. Under the two-tiered profits tax rates regime, the first HK$2 million (equivalent to $257) of profits of the qualifying group entity will be taxed at 8.25%, and profits above HK$2 million will be taxed at 16.5%. The profits of group entities not qualifying for the two-tiered profits tax rates regime will continue to be taxed at a flat rate of 16.5%. The Group has selected Kayser Limited (“Kayser”) as the qualified entity under two-tiered profit tax rates regime and the remaining Hong Kong based subsidiaries are not qualifying under the regime and continue to be taxed at 16.5%. | ||||
Maturity date | January 1, 2022 and until December 31, 2024 | ||||
Preferential income tax rate | (18.80%) | 6.30% | 5.70% | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount (in Yuan Renminbi) | ¥ | ¥ 1 | ||||
IncomeTaxReconciliationForeignIncomeTaxRateAssessableProfit (in Yuan Renminbi) | ¥ | ¥ 1 | ||||
Assessable profit percentage | 5% | ||||
Tax losses (in Dollars) | $ | $ 2,837 | $ 3,604 | |||
Other tax losses (in Dollars) | $ | $ 2,562 | $ 3,604 | |||
Hong Kong [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Profit tax percentage | 16.50% | 16.50% | 16.50% | ||
China [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Profit tax percentage | 25% | ||||
Income tax, description | However, Kayser Myanmar enjoyed a tax exemption for the period from the date of incorporation through the end of December 31, 2017 and was subject to an income tax rate of 25% from January 1, 2018 to September 30, 2021. Starting from October 1, 2021 onwards, income tax rate was reduced to 22%. | ||||
Nissin PRC [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Preferential income tax rate | 2.50% |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of income (loss) before income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | |||
Income before income (loss) taxes | $ (313) | $ 568 | $ (600) |
Hong Kong [Member] | |||
Income Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | |||
Income before income (loss) taxes | (1,065) | 100 | (233) |
China [Member] | |||
Income Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | |||
Income before income (loss) taxes | 774 | 354 | (458) |
Myanmar [Member] | |||
Income Taxes (Details) - Schedule of income (loss) before income taxes [Line Items] | |||
Income before income (loss) taxes | $ (22) | $ 114 | $ 91 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of income tax (credit) expense - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Taxes (Details) - Schedule of income tax (credit) expense [Line Items] | |||
Deferred tax | $ (12) | $ 106 | $ (158) |
Total | (20) | 101 | (146) |
Hong Kong [Member] | |||
Income Taxes (Details) - Schedule of income tax (credit) expense [Line Items] | |||
Current tax | 5 | ||
(Over)/under provision in prior year | (12) | (5) | 7 |
China [Member] | |||
Income Taxes (Details) - Schedule of income tax (credit) expense [Line Items] | |||
Current tax | 1 | ||
(Over)/under provision in prior year | |||
Myanmar [Member] | |||
Income Taxes (Details) - Schedule of income tax (credit) expense [Line Items] | |||
Current tax | |||
(Over)/under provision in prior year | $ 3 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of effective income tax rate reconciliation | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Effective Income Tax Rate Reconciliation Abstract | |||
Profits tax rate in Hong Kong | 16.50% | 16.50% | 16.50% |
Non-deductible items/non-taxable income | 15.90% | 30.80% | 25.50% |
Changes in valuation allowances | 22.60% | (1.90%) | (18.40%) |
Overprovision of profits tax in prior year | 2.90% | (0.90%) | (1.10%) |
Effect of different tax rate of subsidiaries operating in other jurisdictions | (18.80%) | 6.30% | 5.70% |
Tax effect of tax losses not recognized | (55.70%) | (4.40%) | 2% |
Tax effect of changes in tax rate | (3.70%) | ||
Utilization of tax losses previously not recognized | (3.70%) | (6.80%) | |
Others | 23% | (21.20%) | 0.90% |
Effective tax rate | 6.40% | 17.80% | 24.30% |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of deferred income tax liabilities (assets) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Deferred tax liabilities: | ||
Property, plant and equipment | $ 5 | $ 4 |
Operating lease right-of-use assets | 562 | 389 |
Total deferred tax liabilities | 567 | 393 |
Deferred tax assets: | ||
Lease liabilities | (460) | (256) |
Tax loss carry forwards | (469) | (491) |
Valuation allowance | 469 | 494 |
Total deferred tax assets | (460) | (253) |
Net deferred tax liabilities | $ 107 | $ 140 |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of valuation allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Valuation Allowance Abstract | |||
At the beginning of the year | $ 494 | $ 593 | $ 552 |
Current year addition (reduction) | (25) | (99) | 41 |
At the end of the year | $ 469 | $ 494 | $ 593 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Schedule of cash and cash equivalents - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of cash and cash equivalents [Abstract] | ||
Cash on hand | $ 48 | $ 49 |
Bank deposits | 6,904 | 5,961 |
Total cash and cash equivalent | $ 6,952 | $ 6,010 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Receivables [Abstract] | ||
Expected credit loss | $ 28 | $ 8 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Accounts Receivable Net Abstract | ||
Accounts receivable | $ 2,440 | $ 2,311 |
Less: allowance for expected credit losses | (554) | (51) |
Total accounts receivable, net | $ 1,886 | $ 2,260 |
Accounts Receivable, Net (Det_3
Accounts Receivable, Net (Details) - Schedule of movements of the expected credit loss provision - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Movements Of The Expected Credit Loss Provision Abstract | |||
At beginning of year | $ 51 | ||
Provision for the year | 503 | 51 | |
At end of year | $ 554 | $ 51 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Inventories, Net [Abstract] | |||
Slow moving inventories | $ 67 | $ 89 | $ 125 |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of inventories - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Inventories [Abstract] | ||
Raw materials | $ 1,043 | $ 1,578 |
Work in progress | 149 | 417 |
Finished goods | 221 | 355 |
Inventory, Net | $ 1,413 | $ 2,350 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Prepaid Expenses and Other Current Assets [Abstract] | ||
Prepaid expenses | $ 141 | $ 145 |
Payment in advance | 164 | 154 |
Deposits | 54 | 295 |
Other | 47 | 26 |
Total | $ 406 | $ 620 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |||
Depreciation expense | $ 209 | $ 162 | $ 159 |
Impairment of property, plant and equipment | $ 0 | $ 0 | $ 0 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment, net - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
At cost: | ||
Property, plant and equipment, at cost | $ 12,213 | $ 13,050 |
Less: Accumulated depreciation and impairment | (11,812) | (12,407) |
Property, plant and equipment, net | 401 | 643 |
Machinery and equipment [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | 11,149 | 11,707 |
Furniture and fixtures [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | 79 | 89 |
Leasehold improvements [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | 822 | 1,086 |
Motor vehicles [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | $ 163 | $ 168 |
Investments in Equity Method _3
Investments in Equity Method Investees (Details) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Kayser Technik Inc [Member] | ||
Investments in Equity Method Investees (Details) [Line Items] | ||
Equity method investment ownership | 50% | 50% |
Investments in Equity Method _4
Investments in Equity Method Investees (Details) - Schedule of investments in equity method investees - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of investments in equity method investees [Abstract] | ||
The Group’s proportionate share of equity in the net assets of equity investees | $ 5 | $ 5 |
Less: Accumulated impairment losses recognized | (5) | (5) |
Investments in equity investees reported in the consolidated balance sheets |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - Schedule of accrued expenses and other current liabilities - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Accrued Expenses and Other Current Liabilities [Abstract] | ||
Accrued payroll | $ 90 | $ 243 |
Accrued housing allowance | 210 | 231 |
Accrued other social benefits | 1,193 | 1,462 |
Deposits received from customers | 79 | |
Accrued audit fee | 205 | 200 |
Others | 293 | 384 |
Accrued expenses and other current liabilities | $ 1,991 | $ 2,599 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||
Mar. 01, 2023 | Mar. 29, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2019 | |
Leases [Abstract] | ||||||
Expire date | February 2026 | |||||
Lease, description | the Group entered into a lease agreement for factory space located in Yangon, Myanmar that expire in March 2069. The lease for the factory space has a term of 50 years, Kayser Myanmar has the option to extend the lease term for two consecutive 10-year terms on the same terms and conditions as in effect for the initial 50-year period. Kayer Myanmar is obligated under the lease to make monthly lease payment equal to 10 million Myanmar Kyat (equivalent to $4.8 per month as of March 31, 2023) | |||||
Prepaid rent | $ 950 | |||||
Unconditional government subsidy for factory space and dormitories | $ 247 | $ 66 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of supplemental information related to operating leases - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule of Supplemental Information Related to Operating Leases [Abstract] | ||||
Operating lease cost | [1] | $ 888 | $ 871 | $ 731 |
Weighted Average Remaining Lease Term - Operating leases | 8 years 1 month 24 days | 11 years 2 months 19 days | 9 years 21 days | |
Weighted Average Discount Rate - Operating leases | 7.56% | 8.59% | 8.17% | |
[1]Included unconditional government subsidy $66, $ nil |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands | Mar. 31, 2023 USD ($) |
Schedule of Maturities of Lease Liabilities [Abstract] | |
2024 | $ 648 |
2025 | 665 |
2026 | 628 |
2027 | |
2028 | |
Thereafter | 2,164 |
Total undiscounted cash flows | 4,105 |
Less: imputed interest | (2,050) |
Present value of lease liabilities | $ 2,055 |
Government Grants and Subsidi_3
Government Grants and Subsidies (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2021 | |
Government Grants and Subsidies [Abstract] | ||
Percentage of rental payment | 50% | |
Maximum subsidy of per share | $ 1,200 | |
Maximum subsidy per employee | $ 1 |
Government Grants and Subsidi_4
Government Grants and Subsidies (Details) - Schedule of government subsidies received - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Government Subsidies Received [Abstract] | |||
Rental payment for factory space and dormitories located in Shenzhen (offset against cost of sales) | $ 247 | $ 66 | |
Salaries of Hong Kong employees (offset against selling, general and administrative expenses) | 62 | 144 | |
Total | $ 309 | $ 210 |
Long-Term Loan Receivable (Deta
Long-Term Loan Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Long-Term Loan Receivable [Abstract] | |||
Fixed interest rate | 8% | ||
Interest income | $ 8 | $ 8 | $ 8 |
Off-Balance Sheet Exposures (De
Off-Balance Sheet Exposures (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2021 | Oct. 31, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | |
Off - Balance Sheet Exposures [Abstract] | ||||
Credit facility amount | $ 1,000 | $ 1,000 | ||
Percentage of the common stock of the customer | 10% | |||
Credit facility and the amount was reflected in accounts receivable | $ 737 | $ 699 | ||
Off-balance sheet exposure of credit facility | 263 | 301 | ||
Utilized credit facility amount | 475 | 28 | ||
Unutilized credit facility amount | $ 18 | $ 8 |
Dividends (Details)
Dividends (Details) - $ / shares | Mar. 31, 2023 | Oct. 07, 2022 | Mar. 31, 2022 | Nov. 24, 2021 | Oct. 12, 2021 | Mar. 31, 2021 | Nov. 25, 2020 | Oct. 13, 2020 |
Dividends [Abstract] | ||||||||
Dividend per share | $ 0.15 | $ 0.05 | $ 0.06 | $ 0.05 | $ 0.06 | $ 0.1 | $ 0.02 | $ 0.06 |
Concentrations of Credit Risk_3
Concentrations of Credit Risk and Major Customers (Details) | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounts Receivable [Member] | |||
Concentrations of Credit Risk and Major Customers (Details) [Line Items] | |||
Customers accounting percentage | 10% | 10% | 10% |
Total Customer [Member] | |||
Concentrations of Credit Risk and Major Customers (Details) [Line Items] | |||
Number of customer | 4 | ||
Customers accounting percentage | 10% | 10% | |
Total Customer [Member] | |||
Concentrations of Credit Risk and Major Customers (Details) [Line Items] | |||
Number of customer | 3 |
Concentrations of Credit Risk_4
Concentrations of Credit Risk and Major Customers (Details) - Schedule of accounts receivable - Accounts Receivable [Member] | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Accounts Receivable [Abstract] | ||
Four largest receivable balances | 90.50% | 88.10% |
Customer B [Member] | ||
Schedule of Accounts Receivable [Abstract] | ||
Four largest receivable balances | 31.70% | 23.30% |
Customer A [Member] | ||
Schedule of Accounts Receivable [Abstract] | ||
Four largest receivable balances | 30.20% | 30.30% |
Customer D [Member] | ||
Schedule of Accounts Receivable [Abstract] | ||
Four largest receivable balances | 14.50% | 12.50% |
Customer C [Member] | ||
Schedule of Accounts Receivable [Abstract] | ||
Four largest receivable balances | 14.10% | 22% |
Concentrations of Credit Risk_5
Concentrations of Credit Risk and Major Customers (Details) - Schedule of revenue by major customers by reporting segments | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Schedule of Revenue by Major Customers by Reporting Segments [Abstract] | ||||
Accounts Receivable ,Percentage | 94.80% | 76.60% | 87.80% | |
Customer B [Member] | ||||
Schedule of Revenue by Major Customers by Reporting Segments [Abstract] | ||||
Accounts Receivable ,Percentage | [1] | 35.30% | 33.40% | 46.60% |
Customer C [Member] | ||||
Schedule of Revenue by Major Customers by Reporting Segments [Abstract] | ||||
Accounts Receivable ,Percentage | [2] | 33% | 26.50% | 25.90% |
Customer D [Member] | ||||
Schedule of Revenue by Major Customers by Reporting Segments [Abstract] | ||||
Accounts Receivable ,Percentage | [1] | 16.50% | 16.70% | 15.30% |
Customer E [Member] | ||||
Schedule of Revenue by Major Customers by Reporting Segments [Abstract] | ||||
Accounts Receivable ,Percentage | [1] | 10% | ||
[1] Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. Sales to this customer was reported in the Metal Stamping operating segment. |
Net (Loss) Income Per Share (De
Net (Loss) Income Per Share (Details) - shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2021 | |
Net (Loss) Income Per Share [Abstract] | ||
Stock options to purchase shares | 225,000 | 365,000 |
Net (Loss) Income Per Share (_2
Net (Loss) Income Per Share (Details) - Schedule of basic and diluted net (loss) income per share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Basic and Diluted Net Loss Income Per Share [Abstract] | |||
Net (loss) income attributable to Highway Holdings Limited’s shareholders, basic and diluted (in Dollars) | $ (294) | $ 443 | $ (461) |
Shares: | |||
Weighted average common shares used in computing basic net (loss) income per share | 4,070,524 | 4,033,346 | 4,006,400 |
Dilutive stock option | 154,385 | ||
Weighted average common shares used in computing diluted net (loss) income per share | 4,070,524 | 4,187,731 | 4,006,400 |
Net (loss) income per share, basic (in Dollars per share) | $ (0.07) | $ 0.11 | $ (0.12) |
Net (loss) income per share, diluted (in Dollars per share) | $ (0.07) | $ 0.11 | $ (0.12) |
Staff Retirement Plans (Details
Staff Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Staff Retirement Plans (Details) [Line Items] | |||
Cost of contribution to the staff retirement plans | $ 146 | $ 154 | $ 125 |
Hong Kong [Member] | |||
Staff Retirement Plans (Details) [Line Items] | |||
Mandatory provident fund, description | The MPF is available to all employees aged 18 to 64 with at least 60 days of service under the employment of the Group in Hong Kong. Contributions are made by the Group to the MPF at a rate of 5% based on each employee’s relevant compensation, subject to a cap of HK$1,500 (equivalent to $0.19) per month. | ||
Myanmar [Member] | |||
Staff Retirement Plans (Details) [Line Items] | |||
Mandatory provident fund, description | Contributions are made by the Group to the social security plan at a rate of 3% based on each employee’s relevant compensation, subject to a cap of 9,000 Kyat (equivalent to $0.004) per month. |
Stock Options and Restricted _3
Stock Options and Restricted Shares (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Jan. 04, 2021 $ / shares | Jun. 20, 2020 shares | Aug. 08, 2019 | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | Mar. 31, 2021 USD ($) $ / shares shares | Mar. 31, 2020 $ / shares shares | |
Stock Options and Restricted Shares (Details) [Line Items] | |||||||
Exercisable period of options granted | 1 year 4 months 9 days | 2 years 4 months 9 days | |||||
Stock options and restricted shares, description | The number of restricted shares to be vested will be based on the aggregate amount of qualified revenues brought by the consultants to the Group during the 3-year vesting period from January 4, 2021 to January 4, 2024. | ||||||
Restricted price per share | $ / shares | $ 1.97 | ||||||
Stock option granted | 40,000 | 410,000 | |||||
Number of directors | 2 | ||||||
Restricted share issued | 500,000 | ||||||
Stock option price per share | $ / shares | $ 0.66 | $ 0.33 | |||||
Aggregate intrinsic values | $ | $ 16 | $ 298 | |||||
Common Stock Exercise Price | $ / shares | $ 2.04 | $ 2.82 | |||||
Employees restricted shares | 175,000 | ||||||
Weighted-average period | 1 year 4 months 9 days | 2 years 4 months 9 days | 3 years 4 months 9 days | ||||
Board of Director [Member] | |||||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||||
Stock option granted | 40,000 | ||||||
Option Plan 2010 [Member] | |||||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||||
Exercisable period of options granted | 5 years | ||||||
Stock issued during period, shares, restricted stock | 600,000 | ||||||
Stock options and restricted shares, description | On January 4, 2021, the Board of Directors granted awards for a total of 15,000 restricted shares at share price $4.12 to three consultants (5,000 restricted shares to each consultant) based in Germany under the 2020 Option Plan. The number of restricted shares to be vested will be based on the aggregate amount of qualified revenues brought by the consultants to the Group during the 3-year vesting period from January 4, 2021 to January 4, 2024. | the Board of Directors of the Company granted awards for a total of 585,000 shares of stock options and restricted shares under the Company’s 2010 Option Plan. The awards consisted of 160,000 non-qualified share options to 20 key employees, 250,000 non-qualified share options to 7 directors of the Company, including 60,000 options to the Company’s Chief Executive Officer and Chairman of the Board, and 175,000 restricted shares to 12 managers and key employees. | |||||
Repurchase the restricted, description | The restricted shares will vest in five years. In the event that any recipient’s employment with the Group is terminated before August 8, 2024, the Company will have the right to repurchase the restricted shares at a price of $0.01 per share. | ||||||
Compensation expense | $ | $ 89 | $ 73 | |||||
Unrecognized compensation cost | $ | $ 198 | $ 287 | |||||
Restricted Stock [Member] | |||||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||||
Exercisable period of options granted | 5 years | ||||||
Restricted price per share | $ / shares | $ 0.01 | ||||||
Repurchase of restricted shares | 190,000 | 190,000 | 190,000 | ||||
Price per share | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Option Plan 2020 [Member] | |||||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||||
Exercisable period of options granted | 5 years | ||||||
Restricted share issued | 15,000 | ||||||
Stock option price per share | $ / shares | $ 4.12 | ||||||
Compensation expense | $ | $ 89 | ||||||
Unrecognized compensation cost | $ | $ 109 |
Stock Options and Restricted _4
Stock Options and Restricted Shares (Details) - Schedule of fair value options granted - $ / shares | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Fair Value Options Granted [Abstract] | ||
Exercise price (in Dollars per share) | $ 2.42 | $ 1.97 |
Risk-free interest rate | 0.22% | 1.66% |
Expected life | 2 years 6 months | 2 years 6 months |
Expected volatility | 53.56% | 41.83% |
Expected dividend yield | 8% | 8% |
Stock Options and Restricted _5
Stock Options and Restricted Shares (Details) - Schedule of stock option activity - $ / shares | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Stock Option Activity [Abstract] | ||||
Number of stock options, Outstanding beginning balance | 350,000 | 365,000 | 385,000 | |
Weighted average exercise price, Outstanding beginning balance | $ 1.97 | $ 1.97 | $ 1.97 | |
Weighted average remaining contractual life, Outstanding beginning balance | 4 years 4 months 9 days | |||
Number of stock options, Granted | 40,000 | 410,000 | ||
Weighted average exercise price, Granted | $ 2.42 | |||
Number of stock options, Exercised | (50,000) | (10,000) | (40,000) | |
Weighted average exercise price, Exercised | ||||
Number of stock options, Cancelled | (75,000) | (5,000) | (20,000) | |
Weighted average exercise price, Cancelled | ||||
Number of stock options, Outstanding, ending balance | 225,000 | 350,000 | 365,000 | 385,000 |
Weighted average exercise price, Outstanding ending balance | $ 1.97 | $ 1.97 | $ 1.97 | $ 1.97 |
Weighted average remaining contractual life (years), Outstanding ending balance | 1 year 4 months 9 days | 2 years 4 months 9 days | 3 years 4 months 9 days | |
Number of stock options, exercisable | 225,000 | 350,000 | ||
Weighted average exercise price, Exercisable | $ 1.97 | $ 1.97 | ||
Weighted average remaining contractual life (years), Exercisable | 1 year 4 months 9 days | 2 years 4 months 9 days |
Segment Information (Details) -
Segment Information (Details) - Schedule of segment reporting information - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | $ 10,242 | $ 12,365 | $ 9,168 |
Operating (loss) income: | |||
Total operating income (loss) | (477) | 567 | (616) |
Depreciation expense: | |||
Total depreciation | 209 | 162 | 159 |
Capital expenditure: | |||
Total capital expenditure | 92 | 134 | 88 |
Total assets: | |||
Total assets | 13,883 | 14,859 | |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 401 | 643 | |
Metal stamping and Mechanical OEM [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 6,654 | 7,213 | 5,192 |
Operating (loss) income: | |||
Total operating income (loss) | (212) | 339 | (327) |
Depreciation expense: | |||
Total depreciation | 137 | 95 | 90 |
Capital expenditure: | |||
Total capital expenditure | 60 | 78 | 50 |
Total assets: | |||
Total assets | 8,099 | 7,784 | |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 266 | 380 | |
Electric OEM [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 3,588 | 5,152 | 3,976 |
Operating (loss) income: | |||
Total operating income (loss) | (95) | 307 | (207) |
Depreciation expense: | |||
Total depreciation | 72 | 67 | 69 |
Capital expenditure: | |||
Total capital expenditure | 32 | 56 | 38 |
Total assets: | |||
Total assets | 5,696 | 6,961 | |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 135 | 263 | |
Corporate [Member] | |||
Operating (loss) income: | |||
Total operating income (loss) | (170) | (79) | $ (82) |
Total assets: | |||
Total assets | $ 88 | $ 114 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of geographical segment - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | $ 10,242 | $ 12,365 | $ 9,168 |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 401 | 643 | |
Hong Kong and China [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 1,510 | 2,105 | 1,554 |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 110 | 128 | |
Europe [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 8,268 | 8,761 | 7,269 |
Other Asian countries [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 27 | 76 | 37 |
North America [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 437 | 1,423 | $ 308 |
Myanmar [Member] | |||
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | $ 291 | $ 515 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event [Member] | May 13, 2023 shares |
Subsequent Event (Details) [Line Items] | |
Granted shares | 300,000 |
Restricted shares | 100,000 |