Highway Holdings Limited (NASDAQ:HIHO) is a tiny Original Equipment Manufacturer (OEM), which produces metal and plastic parts and electrical sub-assembly for large Japanese, German, and American OEMs. The company is headquartered in Hong Kong and runs manufacturing facilities in Shenzhen in mainland China. Highway Holdings has been in operations since 1990, initially starting its business in Hong Kong as a metal stamping company.
In 1991, it decided to move its manufacturing from Hong Kong to a "free enterprise zone" in Shenzhen set-up by the Communist China with abundant cheap labor. Today, the situation is very different: a much richer China with peaking and increasingly expensive labor force became a real drag on its earnings. Any savings gained...
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