Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 71

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 5
Chunk 71
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 net sales in the segment for the year ended March 31, 2024, as compared to $2,433,000 or 15.6% of net sales in the segment for the same period in the prior fiscal year. The increase in gross profit for the plastic segment was mainly due to the decreases in the cost of raw materials resulting from the depreciation of the RMB, despite the decrease in demand from customers for certain products, when compared with the prior fiscal year, as well as the change of product mix.

Gross profit in the electronic segment increased by $615,000 to $11,021,000 or 19.3% of net sales in the segment for the year ended March 31, 2024, as compared to $10,406,000 or 16.9% of net sales in the segment in the prior fiscal year. The increase in gross margin is attributable to relatively lower labor costs as a result of continuous cost control measures taken and the depreciation of the RMB when compared with the last fiscal year.

Selling, General and Administrative Expenses - SG& A expenses for the year ended March 31, 2024 slightly decreased by $465,000 to $10,501,000 or 15.1% of total net sales, as compared to $10,966,000 or 14.2% of total net sales for the year that ended March 31, 2023.

Corporate expenses slightly decreased by $150,000 to $1,262,000 for the year ended March 31, 2024, as compared to $1,412,000 for the year ended March 31, 2023, related to a decrease in director remunerations.

Table of Contents

SG& A expenses in the plastic segment decreased by $505,000 to $3,563,000 or 28.8% of net sales in the segment for the year ended March 31, 2024, compared to $4,068,000 or 26.0% of net sales in the segment for the 2023 fiscal year. The decrease in total SG& A expenses was primarily related to decreases of $266,000 in staff costs, $91,000 in selling expense and $93,000 in depreciation, 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 the 2024 fiscal year as compared with the 2023