Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 5

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 3
Chunk 5
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 Holding Companies”). See ITEM 4. “ Information of the Company - Organizational Structure” for more details.

The funds of Deswell, the Intermediate Holding Companies and Macao subsidiaries are deposited in banks located in Hong Kong and Macao. The intercompany fund transfer between Deswell, the Intermediate Holding Companies and Macao subsidiaries is not limited by the laws of Hong Kong and Macao.

For the three years ended March 31, 2023, March 31, 2024 and March 31, 2025, Deswell paid dividends of $3.19 million, $3.19 million and $3.19 million respectively to its investors. Deswell expects to pay cash dividends on a semi-annualbasis based on the Company’s six-monthresults. Whether future dividends will be declared will depend upon the Company’s future growth and earnings, of which there can be no assurance. See ITEM 8. “ Dividend Policy” for more details. See ITEM 10. “ Additional Information - Taxation” for information regarding the tax consequences of the dividends that Deswell pays to its investors.

The dividend of $3.19 million paid in the year ended March 31, 2023 was paid by Deswell from its reserve. The dividends of $3.19 million and $3.19 million paid by Deswell for the two years ended March 31, 2024 and March 31, 2025 were funded by the subsidiary, Kwanasia Electronics (Macao Commercial Offshore) Ltd (“ KEMCO”). KEMCO declared dividends to its immediate holding company, Joint Harvest Industries Ltd. (“ Joint Harvest”), in the amounts of $3.19 million and $3.19 million for the two years ended March 31, 2024 and March 31, 2025, respectively. KEMCO is subject to Macao Profits Tax (currently at 12%) on its taxable income. The dividends distributed were paid out of after-taxprofits, and no additional withholding tax applies under Macao law for dividends paid to non-residententities (such as Joint Harvest).

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Joint Harvest then declared dividends to its immediate holding company, Integrated International Ltd (“ Integrated”), in the amounts of $3.19 million, and $3.19 million for the two years ended March 31, 2024 and March 31, 2025, respectively. Joint Harvest, as a holding company incorporated in the BVI, does not incur corporate income tax or withholding tax on