Exhibit 99.1

NEWS RELEASE

HIGHWAY HOLDINGS RESTATES UNAUDITED FINANCIAL STATEMENTS FOR 3 AND 9 MONTHS ENDED DECEMBER 31, 2023 RESULTING IN HIGHER NET INCOME FOR BOTH PERIODS

HONG KONG –July 12, 2024 – Highway Holdings Limited (Nasdaq: HIHO) (the “Company” or “Highway Holdings”) today announced it has restated its unaudited quarterly financial statements for the three and nine months ended December 31, 2023, which were released in an earnings press release on February 1, 2024. The decision to restate the financial statements was approved on July 12, 2024 by Highway Holdings’ Board of Directors upon the recommendation of the Audit Committee of the Board of Directors and after consultation with management.

Investors should no longer rely upon the previously released financial statements cited above. Similarly, any other press releases and investor communications containing information derived from such financial statements should no longer be relied upon.

The Company has concluded that the interim financial statements cannot be relied upon due to the misapplication of a revenue recognition accounting standard following a change in inventory fulfillment and transfer procedures by one of the Company’s customers. The inventory adjustment resulted in the erroneous inclusion of $1,875,000 in net sales and $1,921,000 in cost of sales from the transfers of certain parts to be included in products manufactured by the Company for its customer. This misapplication was identified during the preparation of Highway Holdings’ Annual Report on Form 20-F for the fiscal year ended March 31, 2024. The restated financial statements for the three and nine months ended December 31, 2023 are attached to this press release.

The adjustments to net sales and other line items resulting from the changed inventory transfer policies resulted in an increase in net income for the third quarter of fiscal year 2024 from $302,000, or $0.07 per diluted share, to $348,000, or $0.08 per diluted share, and resulted in an increase in net income for the first nine months of fiscal year 2024 from $177,000, or $0.04 per diluted share, to $223,000, or $0.05 per diluted share in the restated financial statements

Today’s announcement reiterates Highway Holdings’ continued commitment to improve its practices and uphold the highest standards of financial reporting.

About Highway Holdings

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

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements, which involve risks and uncertainties, including but not limited to economic, competitive, governmental, political and technological factors affecting the company’s revenues, operations, markets, products and prices, the impact of the worldwide COVID-19 pandemic, and other factors discussed in the company’s various filings with the Securities and Exchange Commission, including without limitation, the company’s annual reports on Form 20-F.

(Financial Tables Follow)

For further information, please contact:

Global IR Partners

David Pasquale

HIHO@globalirpartners.com

New York Office: +1-914-337-8801

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HIGHWAY HOLDINGS LIMITED AND SUBSIDIARIES

Consolidated Statement of Income

(Dollars in thousands, except per share data)

(Unaudited)

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2023 Announced		2023 Restated		2023 Announced			2023 Restated
Net sales	$	4,107	$	2,232	$	6,776		$	4,901
Cost of sales		3,231		1,310		5,140			3,219
Gross profit		876		922		1,636			1,682
Selling, general and administrative expenses		679		679		1,728			1,728
Operating income/(loss)		197		243		(92	)		(46	)
Non-operating items
Exchange gain /(loss), net		27		27		58			58
Interest income		63		63		156			156
Gain/(Loss) on disposal of Asset		3		3		16			16
Other income/(expenses)		8		8		14			14
Total non-operating income/ (expenses)		101		101		244			244
Net income before income tax and non-controlling interests		298		344		152			198
Income taxes		1		1		7			7
Net income before non-controlling interests		299		345		159			205
Net loss attributable to non-controlling interests		3		3		18			18
Net income attributable to Highway Holdings Limited’s shareholders		302		348		177			223
Net Gain/ (loss) per share – Basic	$	0.07	$	0.08	$	0.04		$	0.05
Net Gain/ (loss) per share - Diluted	$	0.07	$	0.08	$	0.04		$	0.05
Weighted average number of shares outstanding
Basic		4,386		4,386		4,314			4,314
Diluted		4,396		4,396		4,323			4,323

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IGHWAY HOLDINGS LIMITED AND SUBSIDIARIES

Consolidated Balance Sheet

(Dollars in thousands, except per share data)

	Dec 31			Dec 31
	2023 Announced			2023 Restated
Current assets:
Cash and cash equivalents	$	6,186		$	6,186
Accounts receivable, net of doubtful accounts		3,533			1,658
Inventories		1,812			1,858
Prepaid expenses and other current assets		200			200
Income tax recoverable		-			-
Total current assets		11,731			9,902
Property, plant and equipment, (net)		379			379
Operating lease right-of-use assets		2,004			2,004
Long-term deposits		205			205
Long-term loan receivable		95			95
Investments in equity method investees		-			-
Total assets	$	14,414		$	12,585
Current liabilities:
Accounts payable	$	2,477		$	602
Operating lease liabilities, current		586			586
Other liabilities and accrued expenses		1,845			1,845
Income tax payable		551			551
Dividend payable		46			46
Total current liabilities		5,505			3,630
Long term liabilities:
Operating lease liabilities, non-current		1,013			1,013
Deferred income taxes		98			98
Long terms accrued expenses		17			17
Total liabilities		6,633			4,758
Shareholders’ equity:
Preferred shares, $0.01 par value		-			-
Common shares, $0.01 par value		44			44
Additional paid-in capital		12,140			12,140
Accumulated deficit		(3,879	)		(3,833	)
Accumulated other comprehensive income/(loss)		(517	)		(517	)
Non-controlling interest		(7	)		(7	)
Total shareholders’ equity		7,781			7,827
Total liabilities and shareholders’ equity	$	14,414		$	12,585

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