Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 11

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 3
Chunk 11
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 change quickly with little advance notice. Additionally, the PRC laws and regulations and the enforcement of those that apply or are to be applied to Hong Kong or Macao can change quickly with little or no advance notice.

•The Chinese government may exert more oversight and/or control over our operations in China and Macao, or our holdings in Hong Kong, and in offerings conducted overseas by, and/or foreign investment in, China-basedissuers like us.

•Adverse changes in political and economic policies of the PRC government could effect the overall economic growth of China, which could reduce the demand for our services and affect our competitive position.

•There may be a lack of remedies and impartiality under the Chinese legal system that prevents us from enforcing the agreements under which we operate our factories.

•You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in the PRC against the Company, or our officers and our directors based on foreign laws.

•Our financial results, competitiveness and market position could be impaired if our business licenses in China are not renewed.

•The performance and reliability of the internet infrastructure and fixed telecommunication in China may affect our business operations.

•Due to restrictions under PRC law on distributions of dividends by our subsidiaries in the PRC, we may be forced to reduce the amount of, or not be able to pay, dividends to our shareholders.

•PRC regulations may delay or prevent us from making loans to our PRC subsidiaries or making additional capital contributions to our wholly foreign-ownedsubsidiaries in China, which would leave our PRC subsidiaries without the necessary liquidity to continue operations.

•Permissions required from the PRC authorities for our operations could change, requiring us to obtain additional licenses or abide by new regulations.

•If classified as a “resident enterprise” under China’s EIT Law, we may be subject to PRC enterprise income tax and income tax withholding for dividends we receive from our subsidiaries or pay to our stockholders.

•A finding by PRC tax authorities that any of our China subsidiaries owe additional taxes, late payment interest or other penalties could adversely affect our operating results materially.

•Controversies affecting China’s trade with the United States, including the policies of the new Trump administration, could harm our operations or depress our stock price.

•Heightened tensions in international relations, including trade relations between the United States and China, the Russia-Ukrainewar and the Israel-Hamasconflict, may adversely impact our business, financial condition, and results of operations.

•The P