Highway Holdings Limited has announced its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company reported net sales of $1.55 million, a decrease from $1.88 million in the same period of fiscal 2025. Net income for the first quarter of fiscal 2026 stood at $61,000, or $0.01 per diluted share, down from $98,000, or $0.02 per diluted share, in the previous year. Gross profit and profit margins also saw a decline, with gross profit at $527,000 and a margin of 34%, compared to $661,000 and a 35% margin in the first quarter of fiscal 2025. Selling, general, and administrative expenses increased slightly by 1% to $665,000 due to inflationary pressures. The company noted a $4,000 currency exchange gain, compared to $38,000 in the same period last year, and recorded a gain of $82,000 from the disposal of a small underutilized property. Interest income amounted to $43,000 for the quarter. Highway Holdings ended the quarter with $5.82 million in cash and cash equivalents, surpassing its combined short- and long-term liabilities by $3.06 million. The company had a working capital balance of $5.7 million and a current ratio of 3.2:1, with total shareholders' equity rising to $6.4 million from $6.3 million as of March 31, 2025. In terms of business developments, the company reported renewed interest in its proprietary CO₂ cleaning machines, driven by governmental efforts in China to promote non-environmental damaging cleaning solutions. Additionally, there is renewed interest from a previous gaming console customer to ramp up production after a two-year pause.