Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2021shares | |
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 | 4,026,825 |
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, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | 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 Interactive Data Current | Yes |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue from contracts with customers | $ 9,168 | $ 12,558 | $ 14,277 |
Cost of sales | (6,461) | (8,405) | (10,697) |
Gross profit | 2,707 | 4,153 | 3,580 |
Selling, general and administrative expenses | (3,323) | (3,406) | (4,335) |
Operating (loss) income | (616) | 747 | (755) |
Non-operating income (expense): | |||
Exchange (loss) gain, net | (60) | 7 | (8) |
Interest income | 16 | 65 | 33 |
Other income | 51 | 61 | 8 |
Gain on disposal of property, plant and equipment | 9 | 16 | 28 |
Total non-operating income | 16 | 149 | 61 |
(Loss) income before income taxes | (600) | 896 | (694) |
Income taxes (note 3) | 146 | (209) | 26 |
Net (loss) income | (454) | 687 | (668) |
Net loss (profit) attributable to non-controlling interests | (7) | (1) | 38 |
Net (loss) income attributable to Highway Holdings Limited’s shareholders | $ (461) | $ 686 | $ (630) |
Net (loss) income per share: | |||
- basic (in Dollars per share) | $ (0.12) | $ 0.18 | $ (0.17) |
- diluted (in Dollars per share) | $ (0.12) | $ 0.18 | $ (0.17) |
Weighted average number of shares outstanding: | |||
- basic (in Shares) | 4,006,400 | 3,909,976 | 3,801,874 |
- diluted (in Shares) | 4,006,400 | 3,909,976 | 3,801,874 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (454) | $ 687 | $ (668) |
Other comprehensive (loss) income, net of tax: | |||
Change in cumulative foreign currency translation adjustment | (148) | 231 | (35) |
Comprehensive (loss) income | (602) | 918 | (703) |
Comprehensive loss (income) attributable to non-controlling interest | (7) | (1) | 38 |
Comprehensive (loss) income attributable to Highway Holdings Limited’s shareholders | $ (609) | $ 917 | $ (665) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents (note 4) | $ 7,757 | $ 8,827 |
Accounts receivable, net (note 5) | 973 | 2,008 |
Inventories, net (note 6) | 2,238 | 2,000 |
Prepaid expenses and other current assets (note 7) | 513 | 388 |
Total current assets | 11,481 | 13,223 |
Goodwill, net | ||
Property, plant and equipment, net (note 8) | 833 | 878 |
Operating lease right-of-use assets (note 11) | 2,795 | 3,710 |
Long-term deposits | 282 | 263 |
Long-term loan receivable | 95 | 95 |
Investments in equity method investees (note 9) | ||
TOTAL ASSETS | 15,486 | 18,169 |
Current liabilities: | ||
Accounts payable | 653 | 997 |
Operating lease liabilities, current (note 11) | 821 | 782 |
Accrued expenses and other current liabilities (note 10) | 2,347 | 2,294 |
Income tax payable | 58 | 564 |
Dividend payable | 85 | 351 |
Total current liabilities | 3,964 | 4,988 |
Operating lease liabilities, non-current (note 11) | 1,142 | 2,034 |
Deferred income taxes (note 3) | 607 | 229 |
Total liabilities | 5,713 | 7,251 |
Commitments and contingencies (note 12) | ||
Shareholders’ equity: | ||
Preferred shares, $0.01 par value (Authorized: 20,000 shares; no shares issued and outstanding as of March 31, 2020 and 2021) | ||
Common shares, $0.01 par value (Authorized: 20,000,000 shares; 3,971,825 shares as of March 31, 2020 and 4,026,825 shares as of March 31, 2021 issued and outstanding) | 40 | 40 |
Additional paid-in capital | 11,709 | 11,537 |
Accumulated deficit | (2,041) | (865) |
Accumulated other comprehensive income (loss) | 48 | 196 |
Total Highway Holdings shareholder’s equity | 9,756 | 10,908 |
Non-controlling interests | 17 | 10 |
Total Equity | 9,773 | 10,918 |
TOTAL LIABILITIES AND EQUITY | $ 15,486 | $ 18,169 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2021 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 20,000 | 20,000 |
Common stock, par value (in Dollars per share) | $ 0.01 | |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 4,026,825 | 3,971,825 |
Common stock, shares outstanding | 4,026,825 | 3,971,825 |
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) | Treasury shares, at cost | Total Highway Holdings Limited's Shareholder's equity | Non-controlling interests | Total |
Balance, at Mar. 31, 2018 | $ 38 | $ 11,370 | $ 347 | $ (14) | $ 11,741 | $ 49 | $ 11,790 | |
Balance, (in Shares) at Mar. 31, 2018 | 3,802 | |||||||
Net income (loss) | (630) | (630) | (38) | (630) | ||||
Cash dividends | (950) | (950) | (950) | |||||
Translation adjustments | (35) | (35) | (35) | |||||
Balance, at Mar. 31, 2019 | $ 38 | 11,370 | (1,233) | (35) | (14) | 10,126 | 11 | 10,137 |
Balance, (in Shares) at Mar. 31, 2019 | 3,802 | |||||||
Shares issued | $ 2 | 2 | $ 2 | |||||
Shares issued (in Shares) | 175 | |||||||
Exercise of share options (in Shares) | ||||||||
Shares cancelled | (14) | 14 | ||||||
Shares cancelled (in Shares) | (5) | |||||||
Share-based compensation | 181 | 181 | $ 181 | |||||
Net income (loss) | 687 | 687 | (1) | 686 | ||||
Cash dividends | (319) | (319) | (319) | |||||
Translation adjustments | 231 | 231 | 231 | |||||
Balance, at Mar. 31, 2020 | $ 40 | 11,537 | (865) | 196 | 10,908 | 10 | 10,918 | |
Balance, (in Shares) at Mar. 31, 2020 | 3,972 | |||||||
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 income (loss) | (461) | (461) | 7 | (461) | ||||
Cash dividends | (715) | (715) | (715) | |||||
Translation adjustments | (148) | (148) | (148) | |||||
Balance, at Mar. 31, 2021 | $ 40 | $ 11,709 | $ (2,041) | $ 48 | $ 9,756 | $ 17 | $ 9,773 | |
Balance, (in Shares) at Mar. 31, 2021 | 4,027 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends, per share | $ 0.18 | $ 0.08 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (454) | $ 687 | $ (668) |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 159 | 145 | 261 |
Amortization of operating lease right-of-use assets | 841 | 1,074 | |
Deferred tax | 349 | 209 | |
Impairment of goodwill | 77 | ||
Write-down of inventories | 125 | 39 | 419 |
Write-down of property, plant and equipment | 233 | ||
Gain on disposal of property, plant and equipment | (9) | (16) | (28) |
Share-based compensation expenses | 93 | 181 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 1,017 | 232 | (41) |
Inventories | (301) | (559) | 878 |
Prepaid expenses and other current assets | (112) | 58 | 8 |
Accounts payable | (390) | (121) | 270 |
Accrued expenses and other current liabilities | (87) | (570) | (850) |
Operating lease liabilities | (795) | (909) | |
Income tax payable | (521) | 1 | (170) |
Long-term rental prepayment | (871) | ||
Long-term deposits | (19) | (9) | 45 |
Net cash (used in) provided by operating activities | (104) | 442 | (437) |
Cash flows from investing activities: | |||
Purchase of property, plant and equipment | (88) | (91) | (695) |
Payment of long-term loan receivable | (75) | ||
Proceeds from disposal of property, plant and equipment | 10 | 27 | 34 |
Net cash used in investing activities | (78) | (64) | (736) |
Cash flows from financing activities: | |||
Options exercised | 79 | ||
Cash dividends paid | (981) | (297) | (1,244) |
Net cash used in financing activities | (902) | (297) | (1,244) |
Net (decrease) increase in cash and cash equivalents | (1,084) | 81 | (2,417) |
Cash and cash equivalents at the beginning of year | 8,827 | 8,827 | 11,267 |
Effect of exchange rate changes on cash and cash equivalents | 14 | (81) | (23) |
Cash and cash equivalents at the end of year | 7,757 | 8,827 | 8,827 |
Supplemental disclosure of cash flow information: | |||
Income taxes | $ 27 | $ 10 | $ 144 |
Organization and Basis of Finan
Organization and Basis of Financial Statements | 12 Months Ended |
Mar. 31, 2021 | |
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, 2021 | |
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. The Group’s Myanmar facility has been closed for almost three weeks in April and May 2020 because of the COVID-19 pandemic. On February 1, 2021, Myanmar’s military seized control of the government, declared a state of emergency for the upcoming year. The military’s takeover has resulted in widespread civil unrest, including in the area of Yangon in which the Group’s facilities are located. The civil unrest caused the Group’s Myanmar facility to be briefly closed for one week in March 2021 and has otherwise impacted that facilities’ operations. While operations at the Myanmar factory appear to be returning to the pre-takeover levels, the future impact of the military takeover on the Group’s operations in Myanmar remains uncertain. The Group expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the unrest. As a result, during the year ended March 31, 2021, the Group faced increasing uncertainties around its estimates of revenue collectability, accounts receivable credit losses, impairment of inventories and long-lived assets. The Group expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic and the political unrest in Myanmar. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements. (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 high credit ratings and quality. (e) Accounts receivable - The Group’s accounts receivable, other current assets (note 7) and loan receivables (note 2(f)) recorded in prepaid expenses and other current assets are within the scope of ASC Topic 326. Accounts receivable primarily represent amounts due from customers, that are typically non-interest bearing and are initially recorded at the invoiced amount. Accounts receivable balances are write-down against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. 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. (f) Loan receivables (g) Inventories (h) Goodwill Prior to April 1, 2020, in performing the two-step quantitative impairment test, the first step compared the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill was not considered to be impaired and the second step was not be required. If the carrying amount of a reporting unit exceeded its fair value, the second step compared the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill was determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities was the implied fair value of goodwill. This allocation process was only performed for the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. Starting from April 1, 2020, the Group adopted No. 2017-04: Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies the accounting for goodwill impairment by eliminating Step 2 from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step 2 to measure the impairment loss. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets, liabilities and goodwill to reporting units, and determining the fair value of each reporting unit. The gross amount of goodwill and accumulated impairment losses as of March 31, 2020 and 2021 are as follows: Kayser $ Gross as of April 1, 2019, March 31, 2020 and 2021 77 Accumulated impairment loss as of April 1, 2019 (77 ) Accumulated impairment loss as at March 31, 2020 and 2021 (77 ) Net as of March 31, 2020 and 2021 - The balance represented the carrying value of Kayser Myanmar Manufacturing Company Ltd. (“Kayser Myanmar”) and had an aggregate carrying amount of $77 as of year ended March 31, 2018. During the year ended March 31, 2019, the Group has tested goodwill for impairment and estimated the fair value of Kayser Myanmar by using the income approach in step 1 of the impairment test. Based on the quantitative test, it was determined the fair value was more likely than not below its carrying amount. Management has identified several determinative events and factors, which has led to the above conclusion, included: (1) the financial result of Kayser Myanmar was below management’s expectations due to higher than expected supply chain cost and increased competition, (2) the fiscal year 2020 annual budget operating plan in March 31, 2019, which provided additional insights into expectations and priorities for the coming years, such as lower growth and margin expectations and (3) increased and prolonged economic and regulatory uncertainty in the global economics as of March 31, 2019. Management has compared the implied fair value of Kayser Myanmar’s goodwill to the carrying value of the goodwill which is step 2 of the two-step impairment test. An impairment loss was recognized for the excess in the carrying value of goodwill over the implied fair value of goodwill. As a result of the two-step impairment test, the Group has recognized a $77 impairment loss of Kayser Myanmar goodwill in selling, general and administrative expenses during the year ended March 31, 2019, due to margin and revenue from contracts from customers declines as well as the lower growth and margin expectation. No impairment expenses were recognized during the years ended March 31, 2020 and 2021. (i) Property, plant and equipment (j) Impairment or disposal of long-lived assets (other than goodwill) - During the year ended 2020 and 2021, 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 for the year ended 2021, (2) operating and cash flow losses in prior year, (3) changes in production plan by shifting certain production lines from Shenzhen to Myanmar, and (4) negative impact on business operations as a result of COVID-19 pandemic. Management has compared the carrying value of the long-lived asset to the estimated undiscounted operating cash flow based on the above factors. As a result of the comparison, management has identified the sum of expected undiscounted cashflow of multiple types of machinery and equipment are more likely than not below their fair value. The Group has recognized an impairment of long-lived assets amounted to $233, $nil and $nil during the years ended March 31, 2019, 2020 and 2021. The impairment has been recorded in cost of sales and selling, general and administrative expenses, based on the nature of the impaired long-lived assets. (k) 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. (l) Revenue recognition Product 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. 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. 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. The Group did not recognize any revenue from contracts with customers for performance obligations satisfied overtime during the years ended March 31, 2019, 2020 and 2021. Accordingly, the timing of revenue recognition is not impacted by the new standard. The transaction price is generally in the form of a fixed price which is agreed with the customer at contract inception. The transaction price is recorded net of sales return, surcharges and value-added tax of gross sales. The Group has allocated the transaction price to each performance obligation based on the sales contracts and purchase orders. The Group would request a deposit from 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. 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, 2019, 2020 and 2021 amounted to $77, $90 and $121 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 18 for product revenues by segment. Contract balances The Group did not recognize any contract asset as of March 31, 2020 and March 31, 2021. 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, 2020 and March 31, 2021, the balances of the contract liabilities are $39 and $72 including deposits received from customers. All contract liabilities at the beginning of the year ended March 31, 2021 were recognized as revenue during the year ended March 31, 2021 and all contract liabilities as of year ended March 31, 2021 are expected to be realized in the following year. In periods prior to the adoption of Topic 606, the Group’s accounting policy was to recognize revenue when persuasive evidence of an arrangement exists, products are delivered, the price to the buyer is fixed or determinable and collectability is reasonably assured. (m) Staff retirement plan costs (n) Foreign currency translations and transactions The books and records of the Company’s major subsidiaries are maintained in their respective local currencies, the Hong Kong dollars, Myanmar kyat and Renminbi, which are also their respective functional currencies. The financial statements of the Group’s entities of which the functional currency is not U.S. dollars are translated from their respective functional currency into U.S. dollars. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the rates of exchange prevailing at the balance sheet date. Equity accounts other than earnings generated in current period are translated into U.S. dollars at the appropriate historical rates. Income and expense items are translated into U.S. dollars at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries’ financial statements are recorded as a component of comprehensive income (loss). (o) 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. (p) Net income (loss) per share Diluted net income (loss) attributable to the Company per share gives effect to all dilutive potential common shares outstanding during the year. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Anti-dilutive potential ordinary shares are not considered in the calculation of the diluted earnings per share. Potential ordinary shares are antidilutive when the conversion of ordinary shares increases the earnings per share or decreases the net loss per share. (q) Comprehensive income (loss) The Group presents the components of net income (loss), the components of other comprehensive income (loss) and total comprehensive income (loss) in two separate but consecutive statements. (r) 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, accounts receivable, other current assets, accounts payable and other liabilities approximate their fair values due to the short-term nature of these instruments. (s) Non-controlling interest (t) 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 Company 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. There were no grants to non-employee consultants after the effectiveness of ASU 2018-07—Compensation—stock compensation (Topic 718)—Improvements to nonemployee share-based payment accounting. (u) Leases On April 1, 2019, the Group adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after April 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under Topic 840. The Group elected the package of practical expedients permitted under the transition guidance, which allowed it to carry forward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to April 1, 2019. The Group also elected to combine its lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, the Group recognized total ROU assets of $2,184, with corresponding liabilities of $1,275 on the consolidated balance sheets. The ROU assets include adjustments for prepayments and accrued lease payments. The adoption of the new lease standard does not have significant impact on the consolidated statements of comprehensive income and cash flows and there was no adjustment to the beginning retained earnings on April 1, 2019. Under Topic 842, the Group determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Group considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Group’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Group’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and non-current operating lease liabilities, on the consolidated balance sheets. (v) Recently Adopted Accounting Standards In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for Level 1, Level 2 and Level 3 instruments in the fair value hierarchy. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Group applied the new standard beginning April 1, 2020 and the adoption did not have a material impact on the Group’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group applied the new standard beginning April 1, 2020 and the adoption did not have a material impact on the Group’s consolidated financial statements. (w) Accounting standards issued but not adopted as of March 31, 2021 - In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Group continues to evaluate the impact of the guidance and may apply the elections as applicable as changes in the market occur. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (“EPS”) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Group is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statements and related disclosures. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2021 | |
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, 2019, 2020 and 2021. 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%. 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%. Nissin PRC, which is established and operated in China, is subject to the uniform income tax rate of 25% in China. The Group’s manufacturing operations were conducted mainly in Long Hua, Shenzhen and Yangon of Myanmar during the years ended March 31, 2019, 2020 and 2021. However, Kayser Myanmar enjoyed a tax exemption for the period through the end of December 31, 2017 and was subject to an income tax rate of 25% starting from January 1, 2018 onward. The components of (loss) income before income taxes are as follows: Year ended March 31, 2019 2020 2021 $ $ $ Hong Kong (850 ) 673 (233 ) China 398 229 (458 ) Myanmar (242 ) (6 ) 91 (694 ) 896 (600 ) Income tax (credit) expense consists of the following: Year ended March 31, 2019 2020 2021 $ $ $ Current tax: Hong Kong Current tax 4 11 5 (Over)/under provision in prior year (30 ) - 7 China Current tax - - - Myanmar Current tax - - - Deferred tax - 198 (158 ) Total (26 ) 209 (146 ) 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, 2019 2020 2021 % % % Profits tax rate in Hong Kong 16.5 16.5 16.5 Non-deductible items/non-taxable income 3.3 26.9 25.5 Changes in valuation allowances (0.4 ) 1.1 (18.4 ) Overprovision of profits tax in prior year 4.3 - (1.1 ) Effect of different tax rate of subsidiaries operating in other jurisdictions (1.9 ) 1.8 5.7 Tax effect of tax losses not recognized (30.0 ) 0.1 2.0 Utilization of tax losses previously not recognized 12.7 (11.6 ) (6.8 ) Others (0.8 ) (11.5 ) 0.9 Effective tax rate 3.7 23.3 24.3 Deferred income tax liabilities (assets) are as follows: As of March 31, 2020 2021 $ $ Deferred tax liabilities: Deferred severance payment - 392 Property, plant and equipment 5 5 Operating lease right-of-use assets 829 632 Total deferred tax liabilities 834 1,029 Deferred tax assets: Lease liabilities (605 ) (421 ) Tax loss carryforwards (478 ) (520 ) Deferred deductible expenses (74 ) (74 ) Valuation allowance 552 593 Total deferred tax assets (605 ) (422 ) Net deferred tax liabilities 229 607 Movement of valuation allowances are as follows: Year ended March 31, 2019 2020 2021 $ $ $ At the beginning of the year 548 668 552 Current year addition (reduction) 120 (116 ) 41 At the end of the year 668 552 593 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, 2020 and 2021, 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, 2020 and 2021, tax losses amounting to approximately $2,723 and $2,972, respectively. As of March 31, 2021, the tax losses carried forward of $242 and $99, respectively, are to expire during the years ending March 31, 2024 and 2026, respectively. As of March 31, 2020 and 2021, the other tax losses carried forward of $2,382 and $2,631, 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, 2020 and 2021, 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 2011 to 2021 remain subject to examination by the Hong Kong tax authority. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Mar. 31, 2021 | |
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, 2020 2021 $ $ Cash on hand 12 37 Bank deposits 8,815 7,720 8,827 7,757 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net is analyzed as follows: As of March 31, 2020 2021 $ $ Accounts receivable 2,008 973 Less: expected credit loss provision - - 2,008 973 Details of the movements of the expected credit loss provision are as follows: Year ended March 31, 2019 2020 2021 $ $ $ At beginning of year - - - Provision for the year - - - At end of year - - - |
Inventories, Net
Inventories, Net | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | 6. INVENTORIES, NET Inventories consisted of the following: As of March 31, 2020 2021 $ $ Raw materials 1,346 1,574 Work in progress 234 263 Finished goods 420 401 2,000 2,238 Slow moving inventories amounting to $419, $39 and $125 were written off during the years ended March 31, 2019, 2020 and 2021, respectively. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets Disclosure [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, 2020 2021 $ $ Prepaid expenses 129 198 Payment in advance 140 291 Deposits 108 3 Other 11 21 Less: expected credit loss provision - - 388 513 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [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, 2020 2021 $ $ At cost: Machinery and equipment 12,135 11,738 Furniture and fixtures 90 91 Leasehold improvements 1,120 1,114 Motor vehicles 162 167 Total 13,507 13,110 Less: Accumulated depreciation and impairment (12,629 ) (12,277 ) Property, plant and equipment, net 878 833 Depreciation expense incurred for the years ended March 31, 2019, 2020 and 2021 were $261, $145 and $159, respectively. Impairment of property, plant and equipment amounting to $233, $nil and $nil incurred during the years ended March 31, 2019, 2020 and 2021, respectively. |
Investments In Equity Method In
Investments In Equity Method Investees | 12 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [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, 2020 and 2021 and the amount of underlying equity in net assets of the equity investees: As of March 31, 2020 2021 $ $ 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 December 31, 2020 and 2021, 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, 2020 and 2021. |
Accrued expenses and other curr
Accrued expenses and other current liabilities | 12 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities And Other Liabilities Current [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, 2020 2021 $ $ Accrued payroll 134 136 Accrued housing allowance 214 271 Accrued other social benefits 1,167 1,304 Deposits received from customers 39 72 Accrued audit fee 430 228 Others 310 336 2,294 2,347 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, 2021. 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, 2021 | |
Leases [Abstract] | |
LEASES | 11. LEASES On March 21, 2020, the Group entered into two lease agreements for executive and administrative offices in Hong Kong, under three-year leases that expire in March 2023. On March 1, 2020, the Group entered into two lease agreements for factory space and dormitories located in Shenzhen, China that expire in February 2023. 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 $7.3 per month as of March 31, 2021). 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. 2020 2021 $ $ Operating lease cost 991 * 731 * Weighted Average Remaining Lease Term - Operating leases 7.51 years 9.06 years Weighted Average Discount Rate - Operating leases 7.63 % 8.17 % * Included unconditional government subsidy $289 and $66 for factory space and dormitories located in Shenzhen in 2020 and 2021 respectively. The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2021 Operating leases $ Year ending March 31, 2022 823 2023 802 2024 - 2025 - 2026 - Thereafter 3,275 Total undiscounted cash flows 4,900 Less: imputed interest (2,937 ) Present value of lease liabilities 1,963 |
Capital Commitments And Conting
Capital Commitments And Contingencies | 12 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CAPITAL COMMITMENTS AND CONTINGENCIES | 12. CAPITAL COMMITMENTS AND CONTINGENCIES As of March 31, 2020 and 2021, the Group had commitments for capital expenditure contracted for but not provided in the consolidated financial statements in respect of the acquisition of property, plant and equipment of $nil and $50, respectively. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
TREASURY STOCK | 13. TREASURY STOCK a s of March 31, 2020 and 2021, no shares were held in treasury and were not eligible to vote. |
Concentrations of Credit Risk a
Concentrations of Credit Risk and Major Customers | 12 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS | 14. 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 trade receivables. The Group’s cash and cash equivalents are high-quality deposits placed with banking institutions with high credit ratings. This investment policy limits the Group’s exposure to concentrations of credit risk. The trade receivable balances largely represent amounts due from the Group’s principal customers who are generally international organizations with high credit ratings. Letters of credit are the principal security obtained to support lines of credit or negotiated contracts from a customer. As a consequence, related credit risk is limited. Accounts receivable from the three customers with the largest receivable balances or customers that individually comprised 10% or more of receivable balance as of March 31, 2020 and 2021 are as follows: Percentage of accounts receivable 2020 2021 % % Customer A 47.4 43.5 Customer B ** 12.2 Customer C 18.4 10.8 Customer D 7.1 ** Customer E ** 12.1 Three largest receivable balances 72.9 78.6 ** Not among the top three receivable balances or individually comprised 10% or more of receivable balance as of respective year end. 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, 2019, 2020 and 2021 are as follows: Year ended March 31, 2019 2020 2021 % % % Customer A (note a) 47.7 48.2 46.6 Customer B (note a) 18.0 20.8 25.9 Customer C (note b) 11.2 ** ** 76.9 69.0 72.5 ** Comprised less than 10% of net revenue for the respective year end. 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 were reported in the Electric OEM operating segment. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
NET (LOSS) INCOME PER SHARE | 15. 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, 2019 2020 2021 $ $ $ Net (loss) income attributable to Highway Holdings Limited’s shareholders, basic and diluted (630 ) 686 (461 ) Shares: Weighted average common shares used in computing basic net (loss) income per share 3,801,874 3,909,976 4,006,400 Net (loss) income per share, basic (0.17 ) 0.18 (0.12 ) There were no dilutive securities for the year ended March 31, 2019. For the year ended March 31, 2020, stock options to purchase 385,000 shares of the Company’s stock were excluded from the EPS calculation, as their effects were anti-dilutive. For the year ended March 31, 2021, stock options to purchase 365,000 shares of the Company’s stock were excluded from the EPS calculation, as their effects were anti-dilutive. |
Staff Retirement Plans
Staff Retirement Plans | 12 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
STAFF RETIREMENT PLANS | 16. 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 $0.006) 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 and China amounted to $114, $223 and $163 for the years ended March 31, 2019, 2020 and 2021, respectively. |
Stock Options and Restricted Sh
Stock Options and Restricted Shares | 12 Months Ended |
Mar. 31, 2021 | |
Stock Options And Restricted Shares [Abstract] | |
STOCK OPTIONS AND RESTRICTED SHARES | 17. STOCK OPTIONS AND RESTRICTED SHARES The Group has adopted the “2010 Stock Option and Restricted Stock Plan” (the “2010 Option Plan”). The 2010 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 2010 Option Plan is five years. 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 Stock 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 Stock price $ 2.42 Risk-free interest rate 0.22 % Expected life 2.5 years Expected volatility 53.56 % Expected dividend yield 8 % The expected volatility was based on the volatilities of the Company’s listed common stocks in the United States and other relevant market information. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. The dividend yield assumption is based on the Group’s history and expectation of dividend payouts. The expected life of employee stock options represents the weighted-average period the stock options are expected to remain outstanding. For the year ended March 31, 2020 and 2021, compensation expense of $135 and $20 was included in selling, general and administrative expenses, respectively. There was no unrecognized compensation cost related to non-vested stock options granted under the 2010 Option Plan, nor non-vested stock options as at March 31, 2020 and 2021. A summary of stock option activity during the years ended March 31, 2020 and 2021 is as follows: Number of Weighted Weighted Outstanding as of April 1, 2019 - - - Granted 410,000 1.97 - Exercised - - - Cancelled (25,000 ) - - Outstanding as of March 31, 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 Exercisable as of March 31, 2020 385,000 1.97 4.36 Exercisable as of March 31, 2021 365,000 1.97 3.36 The aggregate intrinsic values of the stock options outstanding as of March 31, 2020 and 2021 were $23 and $642, respectively. The intrinsic values of the stock options at March 31, 2020 and 2021 are the amount by which the market value of the Company’s common stock of $2.03 and $3.73 as of March 31, 2020 and 2021, 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. The restricted shares granted under the 2010 Option Plan and the 2020 Option Plan resulted in a compensation expense of $46 and $73 for the years ended March 31, 2020 and 2021 respectively, which is included in selling, general and administrative expenses. As of March 31, 2020 and 2021, there were respectively $299 and $287 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 4.36 and 3.36 years respectively. As of March 31, 2020 and 2021, the Company has the right to repurchase 175,000 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, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 18. 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, 2019 2020 2021 $ $ $ Revenue from contracts with customers: Metal stamping and Mechanical OEM 7,717 6,929 5,192 Electric OEM 6,560 5,629 3,976 Total revenue from contracts with customers 14,277 12,558 9,168 Operating (loss) income: Metal stamping and Mechanical OEM (405 ) 458 (327 ) Electric OEM (250 ) 355 (207 ) Corporate (100 ) (66 ) (82 ) Total operating (loss) income (755 ) 747 (616 ) Depreciation expense: Metal stamping and Mechanical OEM 133 83 90 Electric OEM 128 62 69 Total depreciation 261 145 159 Capital expenditure: Metal stamping and Mechanical OEM 398 53 50 Electric OEM 297 38 38 Total capital expenditure 695 91 88 As of March 31, 2020 2021 $ $ Total assets: Metal stamping and Mechanical OEM 9,753 7,874 Electric OEM 8,248 7,440 Corporate 168 172 Total assets 18,169 15,486 As of March 31, 2020 2021 $ $ Property, plant and equipment, net: Metal stamping and Mechanical OEM 520 474 Electric OEM 358 359 Total property, plant and equipment, net 878 833 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, 2019 2020 2021 $ $ $ Revenue from contracts with customers: Hong Kong and China 2,794 2,186 1,554 Europe 10,901 9,790 7,269 Other Asian countries 128 - 37 North America 454 582 308 Total revenue from contracts with customers 14,277 12,558 9,168 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, 2020 2021 $ $ Property, plant and equipment, net: Hong Kong and China 127 98 Myanmar 751 735 Total property, plant and equipment, net 878 833 |
Related Party Transaction
Related Party Transaction | 12 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTION | 19. RELATED PARTY TRANSACTION There are no material related party transactions for the years ended March 31, 2019, 2020 and 2021. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 20. SUBSEQUENT EVENT The Group has evaluated events from the year ended March 31, 2021 through the date the financial statements were issued. There were no subsequent events that need disclosure. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2021 | |
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. The Group’s Myanmar facility has been closed for almost three weeks in April and May 2020 because of the COVID-19 pandemic. On February 1, 2021, Myanmar’s military seized control of the government, declared a state of emergency for the upcoming year. The military’s takeover has resulted in widespread civil unrest, including in the area of Yangon in which the Group’s facilities are located. The civil unrest caused the Group’s Myanmar facility to be briefly closed for one week in March 2021 and has otherwise impacted that facilities’ operations. While operations at the Myanmar factory appear to be returning to the pre-takeover levels, the future impact of the military takeover on the Group’s operations in Myanmar remains uncertain. The Group expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the unrest. As a result, during the year ended March 31, 2021, the Group faced increasing uncertainties around its estimates of revenue collectability, accounts receivable credit losses, impairment of inventories and long-lived assets. The Group expects uncertainties around its key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic and the political unrest in Myanmar. Its estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its consolidated financial statements. |
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 high credit ratings and quality. |
Accounts receivable | (e) Accounts receivable - The Group’s accounts receivable, other current assets (note 7) and loan receivables (note 2(f)) recorded in prepaid expenses and other current assets are within the scope of ASC Topic 326. Accounts receivable primarily represent amounts due from customers, that are typically non-interest bearing and are initially recorded at the invoiced amount. Accounts receivable balances are write-down against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Group does not have any off-balance-sheet credit exposure related to its customers. 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. |
Loan receivables | (f) Loan receivables |
Inventories | (g) Inventories |
Goodwill | (h) Goodwill Prior to April 1, 2020, in performing the two-step quantitative impairment test, the first step compared the fair values of each reporting unit to its carrying amount, including goodwill. If the fair value of each reporting unit exceeds its carrying amount, goodwill was not considered to be impaired and the second step was not be required. If the carrying amount of a reporting unit exceeded its fair value, the second step compared the implied fair value of goodwill to the carrying value of a reporting unit’s goodwill. The implied fair value of goodwill was determined in a manner similar to accounting for a business combination with the allocation of the assessed fair value determined in the first step to the assets and liabilities of the reporting unit. The excess of the fair value of the reporting unit over the amounts assigned to the assets and liabilities was the implied fair value of goodwill. This allocation process was only performed for the purposes of evaluating goodwill impairment and does not result in an entry to adjust the value of any assets or liabilities. Starting from April 1, 2020, the Group adopted No. 2017-04: Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which simplifies the accounting for goodwill impairment by eliminating Step 2 from the goodwill impairment test. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, versus determining an implied fair value in Step 2 to measure the impairment loss. Application of a goodwill impairment test requires significant management judgment, including the identification of reporting units, assigning assets, liabilities and goodwill to reporting units, and determining the fair value of each reporting unit. The gross amount of goodwill and accumulated impairment losses as of March 31, 2020 and 2021 are as follows: Kayser $ Gross as of April 1, 2019, March 31, 2020 and 2021 77 Accumulated impairment loss as of April 1, 2019 (77 ) Accumulated impairment loss as at March 31, 2020 and 2021 (77 ) Net as of March 31, 2020 and 2021 - The balance represented the carrying value of Kayser Myanmar Manufacturing Company Ltd. (“Kayser Myanmar”) and had an aggregate carrying amount of $77 as of year ended March 31, 2018. During the year ended March 31, 2019, the Group has tested goodwill for impairment and estimated the fair value of Kayser Myanmar by using the income approach in step 1 of the impairment test. Based on the quantitative test, it was determined the fair value was more likely than not below its carrying amount. Management has identified several determinative events and factors, which has led to the above conclusion, included: (1) the financial result of Kayser Myanmar was below management’s expectations due to higher than expected supply chain cost and increased competition, (2) the fiscal year 2020 annual budget operating plan in March 31, 2019, which provided additional insights into expectations and priorities for the coming years, such as lower growth and margin expectations and (3) increased and prolonged economic and regulatory uncertainty in the global economics as of March 31, 2019. Management has compared the implied fair value of Kayser Myanmar’s goodwill to the carrying value of the goodwill which is step 2 of the two-step impairment test. An impairment loss was recognized for the excess in the carrying value of goodwill over the implied fair value of goodwill. As a result of the two-step impairment test, the Group has recognized a $77 impairment loss of Kayser Myanmar goodwill in selling, general and administrative expenses during the year ended March 31, 2019, due to margin and revenue from contracts from customers declines as well as the lower growth and margin expectation. No impairment expenses were recognized during the years ended March 31, 2020 and 2021. |
Property, plant and equipment | (i) Property, plant and equipment |
Impairment or disposal of long-lived assets (other than goodwill) | (j) Impairment or disposal of long-lived assets (other than goodwill) - During the year ended 2020 and 2021, 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 for the year ended 2021, (2) operating and cash flow losses in prior year, (3) changes in production plan by shifting certain production lines from Shenzhen to Myanmar, and (4) negative impact on business operations as a result of COVID-19 pandemic. Management has compared the carrying value of the long-lived asset to the estimated undiscounted operating cash flow based on the above factors. As a result of the comparison, management has identified the sum of expected undiscounted cashflow of multiple types of machinery and equipment are more likely than not below their fair value. The Group has recognized an impairment of long-lived assets amounted to $233, $nil and $nil during the years ended March 31, 2019, 2020 and 2021. The impairment has been recorded in cost of sales and selling, general and administrative expenses, based on the nature of the impaired long-lived assets. |
Concentration of credit risk | (k) 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 | (l) Revenue recognition Product 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. 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. 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. The Group did not recognize any revenue from contracts with customers for performance obligations satisfied overtime during the years ended March 31, 2019, 2020 and 2021. Accordingly, the timing of revenue recognition is not impacted by the new standard. The transaction price is generally in the form of a fixed price which is agreed with the customer at contract inception. The transaction price is recorded net of sales return, surcharges and value-added tax of gross sales. The Group has allocated the transaction price to each performance obligation based on the sales contracts and purchase orders. The Group would request a deposit from 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. 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, 2019, 2020 and 2021 amounted to $77, $90 and $121 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 18 for product revenues by segment. Contract balances The Group did not recognize any contract asset as of March 31, 2020 and March 31, 2021. 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, 2020 and March 31, 2021, the balances of the contract liabilities are $39 and $72 including deposits received from customers. All contract liabilities at the beginning of the year ended March 31, 2021 were recognized as revenue during the year ended March 31, 2021 and all contract liabilities as of year ended March 31, 2021 are expected to be realized in the following year. In periods prior to the adoption of Topic 606, the Group’s accounting policy was to recognize revenue when persuasive evidence of an arrangement exists, products are delivered, the price to the buyer is fixed or determinable and collectability is reasonably assured. |
Staff retirement plan costs | (m) Staff retirement plan costs |
Foreign currency translations and transactions | (n) Foreign currency translations and transactions The books and records of the Company’s major subsidiaries are maintained in their respective local currencies, the Hong Kong dollars, Myanmar kyat and Renminbi, which are also their respective functional currencies. The financial statements of the Group’s entities of which the functional currency is not U.S. dollars are translated from their respective functional currency into U.S. dollars. Assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the rates of exchange prevailing at the balance sheet date. Equity accounts other than earnings generated in current period are translated into U.S. dollars at the appropriate historical rates. Income and expense items are translated into U.S. dollars at the average rates of exchange over the year. All exchange differences arising from the translation of subsidiaries’ financial statements are recorded as a component of comprehensive income (loss). |
Income taxes | (o) 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 income (loss) per share | (p) Net income (loss) per share Diluted net income (loss) attributable to the Company per share gives effect to all dilutive potential common shares outstanding during the year. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Anti-dilutive potential ordinary shares are not considered in the calculation of the diluted earnings per share. Potential ordinary shares are antidilutive when the conversion of ordinary shares increases the earnings per share or decreases the net loss per share. |
Comprehensive income (loss) | (q) Comprehensive income (loss) The Group presents the components of net income (loss), the components of other comprehensive income (loss) and total comprehensive income (loss) in two separate but consecutive statements. |
Fair value measurement and financial instruments | (r) 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, 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 | (s) Non-controlling interest |
Stock-based compensation | (t) 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 Company 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. There were no grants to non-employee consultants after the effectiveness of ASU 2018-07—Compensation—stock compensation (Topic 718)—Improvements to nonemployee share-based payment accounting. |
Leases | (u) Leases On April 1, 2019, the Group adopted Topic 842 using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application. Results and disclosure requirements for reporting periods beginning after April 1, 2019 are presented under Topic 842, while prior period amounts have not been adjusted and continue to be reported in accordance with its historical accounting under Topic 840. The Group elected the package of practical expedients permitted under the transition guidance, which allowed it to carry forward its historical lease classification, its assessment on whether a contract was or contains a lease, and its initial direct costs for any leases that existed prior to April 1, 2019. The Group also elected to combine its lease and non-lease components and to keep leases with an initial term of 12 months or less off the balance sheet and recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Upon adoption, the Group recognized total ROU assets of $2,184, with corresponding liabilities of $1,275 on the consolidated balance sheets. The ROU assets include adjustments for prepayments and accrued lease payments. The adoption of the new lease standard does not have significant impact on the consolidated statements of comprehensive income and cash flows and there was no adjustment to the beginning retained earnings on April 1, 2019. Under Topic 842, the Group determines if an arrangement is a lease at inception. ROU assets and liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Group considers only payments that are fixed and determinable at the time of commencement. As most of its leases do not provide an implicit rate, it uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Group’s incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The ROU asset also includes any lease payments made prior to commencement and is recorded net of any lease incentives received. The Group’s lease terms may include options to extend or terminate the lease when it is reasonably certain that it will exercise such options. Operating leases are included in operating lease right-of-use assets, operating lease liabilities, current and non-current operating lease liabilities, on the consolidated balance sheets. |
Recently Adopted Accounting Standards | (v) Recently Adopted Accounting Standards In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements for Level 1, Level 2 and Level 3 instruments in the fair value hierarchy. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any eliminated or modified disclosures. The Group applied the new standard beginning April 1, 2020 and the adoption did not have a material impact on the Group’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Group applied the new standard beginning April 1, 2020 and the adoption did not have a material impact on the Group’s consolidated financial statements. |
Accounting standards issued but not adopted as of March 31, 2021 | (w) Accounting standards issued but not adopted as of March 31, 2021 - In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848) (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Group continues to evaluate the impact of the guidance and may apply the elections as applicable as changes in the market occur. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity. This ASU (1) simplifies the accounting for convertible debt instruments and convertible preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, that requires entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock; (2) revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification; and (3) revises the guidance in ASC 260, Earnings Per Share, to require entities to calculate diluted earnings per share (“EPS”) for convertible instruments by using the if-converted method. In addition, entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Entities should adopt the guidance as of the beginning of the fiscal year of adoption and cannot adopt the guidance in an interim reporting period. The Group is currently evaluating the impact that ASU 2020-06 may have on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of gross amount of goodwill and accumulated impairment losses | Kayser $ Gross as of April 1, 2019, March 31, 2020 and 2021 77 Accumulated impairment loss as of April 1, 2019 (77 ) Accumulated impairment loss as at March 31, 2020 and 2021 (77 ) Net as of March 31, 2020 and 2021 - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of (loss) income before income taxes | Year ended March 31, 2019 2020 2021 $ $ $ Hong Kong (850 ) 673 (233 ) China 398 229 (458 ) Myanmar (242 ) (6 ) 91 (694 ) 896 (600 ) |
Schedule of income tax (credit) expense | Year ended March 31, 2019 2020 2021 $ $ $ Current tax: Hong Kong Current tax 4 11 5 (Over)/under provision in prior year (30 ) - 7 China Current tax - - - Myanmar Current tax - - - Deferred tax - 198 (158 ) Total (26 ) 209 (146 ) |
Schedule of effective income tax rate reconciliation | Year ended March 31, 2019 2020 2021 % % % Profits tax rate in Hong Kong 16.5 16.5 16.5 Non-deductible items/non-taxable income 3.3 26.9 25.5 Changes in valuation allowances (0.4 ) 1.1 (18.4 ) Overprovision of profits tax in prior year 4.3 - (1.1 ) Effect of different tax rate of subsidiaries operating in other jurisdictions (1.9 ) 1.8 5.7 Tax effect of tax losses not recognized (30.0 ) 0.1 2.0 Utilization of tax losses previously not recognized 12.7 (11.6 ) (6.8 ) Others (0.8 ) (11.5 ) 0.9 Effective tax rate 3.7 23.3 24.3 |
Schedule of deferred income tax liabilities (assets) | As of March 31, 2020 2021 $ $ Deferred tax liabilities: Deferred severance payment - 392 Property, plant and equipment 5 5 Operating lease right-of-use assets 829 632 Total deferred tax liabilities 834 1,029 Deferred tax assets: Lease liabilities (605 ) (421 ) Tax loss carryforwards (478 ) (520 ) Deferred deductible expenses (74 ) (74 ) Valuation allowance 552 593 Total deferred tax assets (605 ) (422 ) Net deferred tax liabilities 229 607 |
Schedule of valuation allowance | Year ended March 31, 2019 2020 2021 $ $ $ At the beginning of the year 548 668 552 Current year addition (reduction) 120 (116 ) 41 At the end of the year 668 552 593 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of March 31, 2020 2021 $ $ Cash on hand 12 37 Bank deposits 8,815 7,720 8,827 7,757 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | As of March 31, 2020 2021 $ $ Accounts receivable 2,008 973 Less: expected credit loss provision - - 2,008 973 |
Schedule of movements of the expected credit loss provision | Year ended March 31, 2019 2020 2021 $ $ $ At beginning of year - - - Provision for the year - - - At end of year - - - |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | As of March 31, 2020 2021 $ $ Raw materials 1,346 1,574 Work in progress 234 263 Finished goods 420 401 2,000 2,238 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Prepaid Expenses And Other Current Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | As of March 31, 2020 2021 $ $ Prepaid expenses 129 198 Payment in advance 140 291 Deposits 108 3 Other 11 21 Less: expected credit loss provision - - 388 513 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | As of March 31, 2020 2021 $ $ At cost: Machinery and equipment 12,135 11,738 Furniture and fixtures 90 91 Leasehold improvements 1,120 1,114 Motor vehicles 162 167 Total 13,507 13,110 Less: Accumulated depreciation and impairment (12,629 ) (12,277 ) Property, plant and equipment, net 878 833 |
Investments In Equity Method _2
Investments In Equity Method Investees (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in equity method investees | As of March 31, 2020 2021 $ $ 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, 2021 | |
Accrued Liabilities And Other Liabilities Current [Abstract] | |
Schedule of accrued expenses and other current liabilities | As of March 31, 2020 2021 $ $ Accrued payroll 134 136 Accrued housing allowance 214 271 Accrued other social benefits 1,167 1,304 Deposits received from customers 39 72 Accrued audit fee 430 228 Others 310 336 2,294 2,347 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of supplemental information related to operating leases | 2020 2021 $ $ Operating lease cost 991 * 731 * Weighted Average Remaining Lease Term - Operating leases 7.51 years 9.06 years Weighted Average Discount Rate - Operating leases 7.63 % 8.17 % * Included unconditional government subsidy $289 and $66 for factory space and dormitories located in Shenzhen in 2020 and 2021 respectively. |
Schedule of maturities of lease liabilities | Operating leases $ Year ending March 31, 2022 823 2023 802 2024 - 2025 - 2026 - Thereafter 3,275 Total undiscounted cash flows 4,900 Less: imputed interest (2,937 ) Present value of lease liabilities 1,963 |
Concentrations of Credit Risk_2
Concentrations of Credit Risk and Major Customers (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Schedule of accounts receivable | Percentage of accounts receivable 2020 2021 % % Customer A 47.4 43.5 Customer B ** 12.2 Customer C 18.4 10.8 Customer D 7.1 ** Customer E ** 12.1 Three largest receivable balances 72.9 78.6 ** Not among the top three receivable balances or individually comprised 10% or more of receivable balance as of respective year end. |
Schedule of revenue by major customers by reporting segments | Year ended March 31, 2019 2020 2021 % % % Customer A (note a) 47.7 48.2 46.6 Customer B (note a) 18.0 20.8 25.9 Customer C (note b) 11.2 ** ** 76.9 69.0 72.5 ** Comprised less than 10% of net revenue for the respective year end. |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net (loss) income per share | Year ended March 31, 2019 2020 2021 $ $ $ Net (loss) income attributable to Highway Holdings Limited’s shareholders, basic and diluted (630 ) 686 (461 ) Shares: Weighted average common shares used in computing basic net (loss) income per share 3,801,874 3,909,976 4,006,400 Net (loss) income per share, basic (0.17 ) 0.18 (0.12 ) |
Stock Options and Restricted _2
Stock Options and Restricted Shares (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Stock Options And Restricted Shares [Abstract] | |
Schedule of fair value options | 2020 Stock price $ 1.97 Risk-free interest rate 1.66 % Expected life 2.5 years Expected volatility 41.83 % Expected dividend yield 8 % 2021 Stock 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 Outstanding as of April 1, 2019 - - - Granted 410,000 1.97 - Exercised - - - Cancelled (25,000 ) - - Outstanding as of March 31, 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 Exercisable as of March 31, 2020 385,000 1.97 4.36 Exercisable as of March 31, 2021 365,000 1.97 3.36 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Year ended March 31, 2019 2020 2021 $ $ $ Revenue from contracts with customers: Metal stamping and Mechanical OEM 7,717 6,929 5,192 Electric OEM 6,560 5,629 3,976 Total revenue from contracts with customers 14,277 12,558 9,168 Operating (loss) income: Metal stamping and Mechanical OEM (405 ) 458 (327 ) Electric OEM (250 ) 355 (207 ) Corporate (100 ) (66 ) (82 ) Total operating (loss) income (755 ) 747 (616 ) Depreciation expense: Metal stamping and Mechanical OEM 133 83 90 Electric OEM 128 62 69 Total depreciation 261 145 159 Capital expenditure: Metal stamping and Mechanical OEM 398 53 50 Electric OEM 297 38 38 Total capital expenditure 695 91 88 As of March 31, 2020 2021 $ $ Total assets: Metal stamping and Mechanical OEM 9,753 7,874 Electric OEM 8,248 7,440 Corporate 168 172 Total assets 18,169 15,486 As of March 31, 2020 2021 $ $ Property, plant and equipment, net: Metal stamping and Mechanical OEM 520 474 Electric OEM 358 359 Total property, plant and equipment, net 878 833 |
Schedule of geographical segment | Year ended March 31, 2019 2020 2021 $ $ $ Revenue from contracts with customers: Hong Kong and China 2,794 2,186 1,554 Europe 10,901 9,790 7,269 Other Asian countries 128 - 37 North America 454 582 308 Total revenue from contracts with customers 14,277 12,558 9,168 As of March 31, 2020 2021 $ $ Property, plant and equipment, net: Hong Kong and China 127 98 Myanmar 751 735 Total property, plant and equipment, net 878 833 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Fixed interest rate | 8.00% | |||
Carrying amount | $ 77 | |||
Impairment of long-lived assets | $ 233 | |||
VAT and surcharges | 121 | 90 | 77 | |
Contract liabilities | $ 72 | $ 39 | ||
Income tax, description | Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. | |||
ROU assets | $ 2,184 | |||
Lease liability | $ 1,275 | |||
Minimum [Member] | Machinery and Equipment [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 5 years | |||
Minimum [Member] | Leasehold Improvements [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 2 years | |||
Maximum [Member] | Machinery and Equipment [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 10 years | |||
Maximum [Member] | Leasehold Improvements [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Estimated useful lives | 5 years | |||
Kayser Myanmar [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Impairment losses | $ 77 | $ 77 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of gross amount of goodwill and accumulated impairment losses - Kayser Myanmar [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2019 | |
Summary of Significant Accounting Policies (Details) - Schedule of gross amount of goodwill and accumulated impairment losses [Line Items] | ||
Gross as of April 1, 2019, March 31, 2020 and 2021 | $ 77 | |
Accumulated impairment loss as of April 1, 2019 | (77) | |
Accumulated impairment loss as at March 31, 2020 and 2021 | (77) | $ (77) |
Net as of March 31, 2020 and 2021 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 21, 2018 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
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%. | |||
Tax losses | $ 2,972 | $ 2,723 | ||
Tax losses carried forward | $ 242 | 99 | ||
Operating loss carry forward expiration date, description | expire during the years ending March 31, 2024 and 2026 | |||
Other tax losses | $ 2,631 | $ 2,382 | ||
Hong Kong [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Effective income tax rate reconciliation, at federal statutory income tax rate | 16.50% | 16.50% | 16.50% | |
China [Member] | ||||
Income Taxes (Details) [Line Items] | ||||
Effective income tax rate reconciliation, at federal statutory income tax rate | 25.00% | |||
Income tax, description | However, Kayser Myanmar enjoyed a tax exemption for the period through the end of December 31, 2017 and was subject to an income tax rate of 25% starting from January 1, 2018 onward. |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of (loss) income before income taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes (Details) - Schedule of (loss) income before income taxes [Line Items] | |||
Income before income (loss) taxes | $ (600) | $ 896 | $ (694) |
Hong Kong [Member] | |||
Income Taxes (Details) - Schedule of (loss) income before income taxes [Line Items] | |||
Income before income (loss) taxes | (233) | 673 | (850) |
China [Member] | |||
Income Taxes (Details) - Schedule of (loss) income before income taxes [Line Items] | |||
Income before income (loss) taxes | (458) | 229 | 398 |
Myanmar [Member] | |||
Income Taxes (Details) - Schedule of (loss) income before income taxes [Line Items] | |||
Income before income (loss) taxes | $ 91 | $ (6) | $ (242) |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of income tax (credit) expense - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current tax: | |||
Deferred tax | $ (158) | $ 198 | |
Total | (146) | 209 | (26) |
Hong Kong [Member] | |||
Current tax: | |||
Current tax | 5 | 11 | 4 |
(Over)/under provision in prior year | 7 | (30) | |
China [Member] | |||
Current tax: | |||
Current tax | |||
Myanmar [Member] | |||
Current tax: | |||
Current tax |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of effective income tax rate reconciliation | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
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 | 25.50% | 26.90% | 3.30% |
Changes in valuation allowances | (18.40%) | 1.10% | (0.40%) |
Overprovision of profits tax in prior year | (1.10%) | 4.30% | |
Effect of different tax rate of subsidiaries operating in other jurisdictions | 5.70% | 1.80% | (1.90%) |
Tax effect of tax losses not recognized | 2.00% | 0.10% | (30.00%) |
Utilization of tax losses previously not recognized | (6.80%) | (11.60%) | 12.70% |
Others | 0.90% | (11.50%) | (0.80%) |
Effective tax rate | 24.30% | 23.30% | 3.70% |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of deferred income tax liabilities (assets) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Deferred tax liabilities: | ||
Deferred severance payment | $ 392 | |
Property, plant and equipment | 5 | 5 |
Operating lease right-of-use assets | 632 | 829 |
Total deferred tax liabilities | 1,029 | 834 |
Deferred tax assets: | ||
Lease liabilities | (421) | (605) |
Tax loss carryforwards | (520) | (478) |
Deferred deductible expenses | (74) | (74) |
Valuation allowance | 593 | 552 |
Total deferred tax assets | (422) | (605) |
Net deferred tax liabilities | $ 607 | $ 229 |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of valuation allowance - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of valuation allowance [Abstract] | |||
At the beginning of the year | $ 552 | $ 668 | $ 548 |
Current year addition (reduction) | 41 | (116) | 120 |
At the end of the year | $ 593 | $ 552 | $ 668 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - Schedule of cash and cash equivalents - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Schedule of cash and cash equivalents [Abstract] | ||||
Cash on hand | $ 37 | $ 12 | ||
Bank deposits | 7,720 | 8,815 | ||
Total cash and cash equivalent | $ 7,757 | $ 8,827 | $ 8,827 | $ 11,267 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable, net - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of accounts receivable, net [Abstract] | ||
Accounts receivable | $ 973 | $ 2,008 |
Less: expected credit loss provision | ||
Accounts receivable, Total | $ 973 | $ 2,008 |
Accounts Receivable, Net (Det_2
Accounts Receivable, Net (Details) - Schedule of movements of the expected credit loss provision - USD ($) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of movements of the expected credit loss provision [Abstract] | |||
At beginning of year | |||
Provision for the year | |||
At end of year |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |||
Slow moving inventories | $ 125 | $ 39 | $ 419 |
Inventories, Net (Details) - Sc
Inventories, Net (Details) - Schedule of inventories - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 1,574 | $ 1,346 |
Work in progress | 263 | 234 |
Finished goods | 401 | 420 |
Inventory, Net | $ 2,238 | $ 2,000 |
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, 2021 | Mar. 31, 2020 |
Schedule of prepaid expenses and other current assets [Abstract] | ||
Prepaid expenses | $ 198 | $ 129 |
Payment in advance | 291 | 140 |
Deposits | 3 | 108 |
Other | 21 | 11 |
Less: expected credit loss provision | ||
Total | $ 513 | $ 388 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 159 | $ 145 | $ 261 |
Impairment of property, plant and equipment | $ 233 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net (Details) - Schedule of property, plant and equipment, net - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
At cost: | ||
Property, plant and equipment, at cost | $ 13,110 | $ 13,507 |
Less: Accumulated depreciation and impairment | (12,277) | (12,629) |
Property, plant and equipment, net | 833 | 878 |
Machinery and equipment [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | 11,738 | 12,135 |
Furniture and fixtures [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | 91 | 90 |
Leasehold improvements [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | 1,114 | 1,120 |
Motor vehicles [Member] | ||
At cost: | ||
Property, plant and equipment, at cost | $ 167 | $ 162 |
Investments In Equity Method _3
Investments In Equity Method Investees (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Kayser Technik Inc [Member] | ||
Investments In Equity Method Investees (Details) [Line Items] | ||
Equity method investment ownership percentage | 50.00% | 50.00% |
Investments In Equity Method _4
Investments In Equity Method Investees (Details) - Schedule of investments in equity method investees - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
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, 2021 | Mar. 31, 2020 |
Schedule of accrued expenses and other current liabilities [Abstract] | ||
Accrued payroll | $ 136 | $ 134 |
Accrued housing allowance | 271 | 214 |
Accrued other social benefits | 1,304 | 1,167 |
Deposits received from customers | 72 | 39 |
Accrued audit fee | 228 | 430 |
Others | 336 | 310 |
Accrued Expenses and Other Current Liabilities | $ 2,347 | $ 2,294 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Mar. 29, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | |||
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 $7.3 per month as of March 31, 2021). 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. | ||
Operating lease cost government subsidy and sublease income | $ 66 | $ 289 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of supplemental information related to operating leases - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Schedule of supplemental information related to operating leases [Abstract] | |||
Operating lease cost | [1] | $ 731 | $ 991 |
Weighted Average Remaining Lease Term - Operating leases | 9 years 21 days | 7 years 186 days | |
Weighted Average Discount Rate - Operating leases | 8.17% | 7.63% | |
[1] | Included unconditional government subsidy $289 and $66 for factory space and dormitories located in Shenzhen in 2020 and 2021 respectively. |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities $ in Thousands | Mar. 31, 2021USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
2022 | $ 823 |
2023 | 802 |
2024 | |
2025 | |
2026 | |
Thereafter | 3,275 |
Total undiscounted cash flows | 4,900 |
Less: imputed interest | (2,937) |
Present value of lease liabilities | $ 1,963 |
Capital Commitments And Conti_2
Capital Commitments And Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Acquisition of property, plant and equipment | $ 50 |
Concentrations of Credit Risk_3
Concentrations of Credit Risk and Major Customers (Details) | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Concentrations of Credit Risk and Major Customers (Details) [Line Items] | |||
Customers accounting percentage | 10.00% | ||
Accounts Receivable [Member] | |||
Concentrations of Credit Risk and Major Customers (Details) [Line Items] | |||
Customers accounting percentage | 10.00% | 10.00% | |
Total revenue [Member] | |||
Concentrations of Credit Risk and Major Customers (Details) [Line Items] | |||
Customers accounting percentage | 10.00% | 10.00% | 10.00% |
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, 2021 | Mar. 31, 2020 | |||
Concentrations of Credit Risk and Major Customers (Details) - Schedule of accounts receivable [Line Items] | ||||
Three largest receivable balances | 78.60% | 72.90% | ||
Customer A [Member] | ||||
Concentrations of Credit Risk and Major Customers (Details) - Schedule of accounts receivable [Line Items] | ||||
Three largest receivable balances | 43.50% | 47.40% | ||
Customer B [Member] | ||||
Concentrations of Credit Risk and Major Customers (Details) - Schedule of accounts receivable [Line Items] | ||||
Three largest receivable balances | 12.20% | [1] | ||
Customer C [Member] | ||||
Concentrations of Credit Risk and Major Customers (Details) - Schedule of accounts receivable [Line Items] | ||||
Three largest receivable balances | 10.80% | 18.40% | ||
Customer D [Member] | ||||
Concentrations of Credit Risk and Major Customers (Details) - Schedule of accounts receivable [Line Items] | ||||
Three largest receivable balances | [1] | 7.10% | ||
Customer E [Member] | ||||
Concentrations of Credit Risk and Major Customers (Details) - Schedule of accounts receivable [Line Items] | ||||
Three largest receivable balances | 12.10% | [1] | ||
[1] | Not among the top three receivable balances or individually comprised 10% or more of receivable balance as of respective year end. |
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, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |||||
Revenue, Major Customer [Line Items] | |||||||
Accounts Receivable ,Percentage | 72.50% | 69.00% | 76.90% | ||||
Customer A [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Accounts Receivable ,Percentage | [1] | 46.60% | 48.20% | 47.70% | |||
Customer B [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Accounts Receivable ,Percentage | [1] | 25.90% | 20.80% | 18.00% | |||
Customer C [Member] | |||||||
Revenue, Major Customer [Line Items] | |||||||
Accounts Receivable ,Percentage | [2] | [2] | 11.20% | [3] | |||
[1] | Sales to this customer were reported in both of the Metal Stamping and Mechanical OEM and Electric OEM operating segments. | ||||||
[2] | Comprised less than 10% of net revenue for the respective year end. | ||||||
[3] | Sales to this customer were reported in the Electric OEM operating segment. |
Net (Loss) Income Per Share (De
Net (Loss) Income Per Share (Details) - shares | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Stock options to purchase shares | 365,000 | 385,000 |
Net (Loss) Income Per Share (_2
Net (Loss) Income Per Share (Details) - Schedule of basic and diluted net (loss) income per share - $ / shares | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Net (loss) income attributable to Highway Holdings | |||
Limited’s shareholders, basic and diluted | $ (461) | $ 686 | $ (630) |
Shares: | |||
Weighted average common shares used in computing basic net (loss) income per share (in Shares) | 4,006,400 | 3,909,976 | 3,801,874 |
Net (loss) income per share, basic | $ (0.12) | $ 0.18 | $ (0.17) |
Staff Retirement Plans (Details
Staff Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Staff Retirement Plans (Details) [Line Items] | |||
Cost of contribution to the staff retirement plans | $ 163 | $ 223 | $ 114 |
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 $0.006) per month. |
Stock Options and Restricted _3
Stock Options and Restricted Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 04, 2021 | Jun. 20, 2020 | Aug. 08, 2019 | Mar. 31, 2021 | Mar. 31, 2020 |
Stock Options and Restricted Shares (Details) [Line Items] | |||||
Fair value price (in Dollars per share) | $ 1.97 | ||||
Stock option granted | 40,000 | 410,000 | |||
Restricted share issued | 500,000 | ||||
Stock option price per share (in Dollars per share) | $ 0.66 | $ 0.33 | |||
Aggregate intrinsic values (in Dollars) | $ 642 | $ 23 | |||
Common Stock Exercise Price (in Dollars per share) | $ 3.73 | $ 2.03 | |||
Employees restricted shares | 175,000 | ||||
Compensation expense (in Dollars) | $ 73 | ||||
Weighted-average period | 3 years 131 days | 4 years 131 days | |||
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 | 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. | ||||
Unrecognized compensation cost (in Dollars) | $ 299 | ||||
Option Plan 2020 [Member] | |||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||
Restricted share issued | 15,000 | ||||
Stock option price per share (in Dollars per share) | $ 4.12 | ||||
Compensation expense (in Dollars) | $ 46 | ||||
Unrecognized compensation cost (in Dollars) | $ 287 | ||||
Restricted Stock [Member] | |||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||
Repurchase of restricted shares | 190,000 | 175,000 | |||
Price per share (in Dollars per share) | $ 0.01 | ||||
Board of Director [Member] | |||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||
Stock option granted | 40,000 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Stock Options and Restricted Shares (Details) [Line Items] | |||||
Selling, general and administrative expenses (in Dollars) | $ 20 | $ 135 |
Stock Options and Restricted _4
Stock Options and Restricted Shares (Details) - Schedule of fair value options - $ / shares | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of fair value options [Abstract] | ||
Stock 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 | 8.00% | 8.00% |
Stock Options and Restricted _5
Stock Options and Restricted Shares (Details) - Schedule of stock option activity - $ / shares | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of stock option activity [Abstract] | ||
Number of stock options, Outstanding beginning balance | 385,000 | |
Weighted average exercise price, Outstanding beginning balance (in Dollars per share) | $ 1.97 | |
Number of stock options, Granted | 40,000 | 410,000 |
Weighted average exercise price, Granted (in Dollars per share) | $ 2.42 | $ 1.97 |
Number of stock options, Exercised | (40,000) | |
Weighted average exercise price, Exercised | ||
Number of stock options, Cancelled | (20,000) | (25,000) |
Weighted average exercise price, Cancelled | ||
Number of stock options, Outstanding, ending balance | 365,000 | 385,000 |
Weighted average exercise price, Outstanding ending balance (in Dollars per share) | $ 1.97 | $ 1.97 |
Weighted average remaining contractual life (years), Outstanding ending balance | 3 years 131 days | 4 years 131 days |
Number of stock options, exercisable | 365,000 | 385,000 |
Weighted average exercise price, Exercisable (in Dollars per share) | $ 1.97 | $ 1.97 |
Weighted average remaining contractual life (years), Exercisable | 3 years 131 days | 4 years 131 days |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information (Details) -
Segment Information (Details) - Schedule of segment reporting information - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | $ 9,168 | $ 12,558 | $ 14,277 |
Operating (loss) income: | |||
Total operating (loss) income | (616) | 747 | (755) |
Depreciation expense: | |||
Total depreciation | 159 | 145 | 261 |
Capital expenditure: | |||
Total capital expenditure | 88 | 91 | 695 |
Total assets: | |||
Total assets | 15,486 | 18,169 | |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 833 | 878 | |
Metal stamping and Mechanical OEM [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 5,192 | 6,929 | 7,717 |
Operating (loss) income: | |||
Total operating (loss) income | (327) | 458 | (405) |
Depreciation expense: | |||
Total depreciation | 90 | 83 | 133 |
Capital expenditure: | |||
Total capital expenditure | 50 | 53 | 398 |
Total assets: | |||
Total assets | 7,874 | 9,753 | |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 474 | 520 | |
Electric OEM [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 3,976 | 5,629 | 6,560 |
Operating (loss) income: | |||
Total operating (loss) income | (207) | 355 | (250) |
Depreciation expense: | |||
Total depreciation | 69 | 62 | 128 |
Capital expenditure: | |||
Total capital expenditure | 38 | 38 | 297 |
Total assets: | |||
Total assets | 7,440 | 8,248 | |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 359 | 358 | |
Corporate [Member] | |||
Operating (loss) income: | |||
Total operating (loss) income | (82) | (66) | $ (100) |
Total assets: | |||
Total assets | $ 172 | $ 168 |
Segment Information (Details)_2
Segment Information (Details) - Schedule of geographical segment - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | $ 9,168 | $ 12,558 | $ 14,277 |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 833 | 878 | |
Hong Kong and China [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 1,554 | 2,186 | 2,794 |
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | 98 | 127 | |
Europe [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 7,269 | 9,790 | 10,901 |
Other Asian countries [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 37 | 128 | |
North America [Member] | |||
Revenue from contracts with customers: | |||
Total revenue from contracts with customers | 308 | 582 | $ 454 |
Myanmar [Member] | |||
Property, plant and equipment, net: | |||
Total property, plant and equipment, net | $ 735 | $ 751 |