Highway Holdings is a vertically integrated contract manufacturer that produces metal, plastic, and electronic components, subassemblies, and finished goods for multinational manufacturers. The company primarily serves European industrial and consumer goods companies in sectors such as office equipment and home appliances. Highway Holdings operates through two main segments: Metal Stamping and Mechanical OEM, which provides metal parts, and Electric OEM, which focuses on electronics and plastic components. The company manages production costs through geographic arbitrage, utilizing automated facilities in Shenzhen for engineering and tooling while using labor-intensive assembly plants in Myanmar to benefit from lower wages and preferential tariffs. A majority-owned German subsidiary, Regent-Feinbau, provides precision sheet metal for customers requiring local European sourcing. Highway Holdings' strategy involves moving up the value chain toward more complex subassemblies and transitioning from an original equipment manufacturer to an original design manufacturer. To support this shift, the company is developing proprietary products, including brushless DC motors and micro servo motors for robotics. While the core business remains manufacturing, Highway Holdings is also exploring the elderly services market in China through its SilverAge subsidiary. The company relies on a small number of large accounts, with three customers representing the vast majority of net sales.