Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 67

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 5
Chunk 67
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 in gross profit for the plastic segment was mainly due to the relative increase in the cost of raw materials and labor resulting from decrease in sales revenues, when compared with the prior fiscal year, as well as the change of product mix.

Table of Contents

Gross profit in the electronic segment increased by $269,000 to $11,290,000 or 20.0% of net sales in the segment for the year ended March 31, 2025, as compared to $11,021,000 or 19.3% of net sales in the segment in the prior fiscal year. The increase in gross margin is attributable to relatively lower raw materials and labor costs, as well as a result of continuous cost control measures taken, when compared with last fiscal year.

Selling, General and Administrative Expenses - SG& A expenses for the year ended March 31, 2025 increased by $779,000 to $11,280,000 or 16.7% of total net sales, as compared to $10,501,000 or 15.1% of total net sales for the year ended March 31, 2024.

Corporate expenses slightly increased by $86,000 to $1,348,000 for the year ended March 31, 2025, as compared to $1,262,000 for the year ended March 31, 2024, related to an increase in director remunerations.

SG& A expenses in the plastic segment increased by $252,000 to $3,815,000 or 34.0% of net sales in the segment for the year ended March 31, 2025, compared to $3,563,000 or 28.8% of net sales in the segment for fiscal 2024. The increase in total SG& A expenses was primarily related to increases of $93,000 in staff costs and welfare, $89,000 in audit fees, $54,000 in local government taxes and charges, offsetting a decrease of $30,000 in sundry expense, as compared with the same period in the prior fiscal year. The SG& A expense as a percentage of total sales revenues was relatively higher due to lower sales revenues during fiscal 2025 as compared with fiscal 2024.

SG& A expenses in the electronic segment increased by $441,000 to $6,117,000 or 10.8% of net sales in the segment for the year ended March 31, 2025, compared