Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 61

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 4
Chunk 61
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 marketing their products, some of which may be new. Many of the industry segments served by the Company’s customers are subject to technological change, which can result in short product life cycles. The Company could be materially adversely affected if advances in technology or other factors reduce the marketability of essential products of its customers or if new products being developed by its customers do not attain desired levels of acceptance.

Historically, the Company has depended, currently depends, and expects to continue to depend, on a small number of customers for a significant percentage of its net sales. The following table sets forth Deswell’s major customers which accounted for 10% or more of its net sales during fiscal 2023, 2024 and 2025:

                  Year ended March 31                      
                                 2023      2024      2025  
 ───────────────────────────────────────────────────────────
  Customer B                     21.4      14.5      20.0  
  Customer E                     19.6      19.5      13.8  
  Customer G                        *      11.4         *  

____________

*Less than 10% in the year indicated.

If the Company’s major customers experience a decline in the demand for their products as a result of the prevailing economic environment or other factors, the products or services that we provide to them could be reduced or even terminated. The loss of any of our major customers or a substantial reduction in orders from any of them would adversely impact our sales and operating results unless and until we were able to replace the customer or order with one or more of comparable size.

The Company’s sales are based on purchase orders and there are no long-termcontracts with any of Deswell’s customers. The percentage of sales to the Company’s customers has fluctuated in the past and may fluctuate in future. Substantial decreases in sales to, or the loss of major customers, have adversely impacted Deswell’s sales and financial performance.

Present or future customers could cease to use Deswell as the source of the injection-moldedplastic parts and components it manufactures for electronic manufacturing services of electrical products and subassemblies or for metallic molds and accessories or significantly change, reduce or delay the amount of products and services ordered. The Company’s sales may decline and its financial results will suffer if orders from its largest customers, or orders from other substantial customers, cease or are significantly reduced, unless Deswell can maintain strong relationships with longstanding customers or add sales from new customers.

Following the global