Highway Holdings Announces Manufacturing Order for Video Gaming Consoles
October 15 2020 - 8:30AM
Business Wire
Highway Holdings Limited (Nasdaq:HIHO) today announced
that the company has received an initial manufacturing order valued
at approximately $1.5 million from Playmaji, a California-based
company, for an innovative gaming console designed to play new and
legacy video games with premium quality and patent-protected
modular gaming technology.
The order is the first order received under an exclusive
two-year contract to manufacture Playmaji’s new Polymega game
consoles and accessories. The exclusive manufacturing agreement, if
fully utilized during the two-year period, represents a value of
not less than $8.8 million.
“The location of our operations in Myanmar and the company’s
top-quality capabilities were important considerations in this
customer’s selection of Highway Holdings. However, the initial
order will be produced at the company’s facility in China due to
current travel restrictions in order to meet delivery schedules for
the expected holiday seasonal demand. We anticipate this product
line will contribute meaningfully to the company’s sales during the
next few years, supported by exciting consumer marketing
initiatives by Playmaji and increasing home entertainment demand
due to the worldwide impact of the coronavirus. We look forward to
mutual success and a long-term relationship,” said Roland Kohl,
chairman, president and chief executive officer.
Kohl noted that the manufacturing contract was the result of a
cooperative spirit over a considerable time period, and an
extensive prototype development program.
“Given our strict quality requirements and risks associated with
today’s ever-changing geopolitical climate, we found great value in
the investments that Highway Holdings made to expand its operations
into Myanmar, while also maintaining a presence in South China -- a
large hub for our international supply chain. The team at Highway
Holdings has been critical to executing our vision of Polymega
brand products to date, and we are excited to bring Polymega into
market this year in cooperation with the company’s expert
production team,” said Bryan Bernal, chief executive officer and
co-founder of Playmaji.
As part of the exclusivity agreement, Highway Holdings was
granted a two-year option to purchase up to 10% of the equity of
Playmaji.
About Playmaji
Playmaji is a California-based specialty developer, producer,
and manufacturer of next-generation video game related products for
new and legacy game consoles. Additional information is available
at www.polymega.com.
About Highway Holdings
Highway Holdings is an international manufacturer of a wide
variety of high-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. Additional information is available at
www.highwayholdings.com
Except for the historical information contained herein, the
matters discussed in this press release are forward-looking
statements which involve risks and uncertainties, including but not
limited to economic, competitive, governmental, political and
technological factors affecting the company's revenues, operations,
markets, products and prices, and other factors discussed in the
company’s various filings with the Securities and Exchange
Commission, including without limitation, the company’s annual
reports on Form 20-F.
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version on businesswire.com: https://www.businesswire.com/news/home/20201015005294/en/
Gary S. Maier Maier & Company, Inc. (310) 471-1288
Highway (NASDAQ:HIHO)
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