Company: DSWL
Filing Date: 2025-04-21
Form Type: CORRESP
Source: 0001174947-25-000600
Chunk: 5

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-04-21
Form: CORRESP
Chunk 5
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 Additionally, please quantify any dividends or distributions that a      
 subsidiary, not just the PRC subsidiaries, has made to the holding company and which entity made such transfer, and their tax consequences. |

Response:In response to the Staff’s comment, the Company respectfully proposes to revise the disclosure in its future filings on Form 20-F (with strikethroughs and underlines showing the changes against the disclosure in the Annual Report) as follows: Part I, Item 3. Key Information, Cash Flows through Our Organization, page 5 “For the three years ended March 31, 2022, March 31, 2023 and March 31, 2024, 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-annual basis based on the Company’s six-month results. 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.

April 21, 2025
Page 10

The dividends paid by Deswell were funded entirely by our 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, $3.19 million, and $3.19 million for the three years ended March 31, 2022, March 31, 2023 and March 31, 2024, respectively. KEMCO is subject to Macao Profits Tax (currently at 12%) on its taxable income. The dividends distributed were paid out of after-tax profits, and no additional withholding tax applies under Macao law for dividends paid to non-resident entities (such as Joint Harvest). Joint Harvest then declared dividends to its immediate holding company, Integrated International Ltd (“Integrated”), in the amounts of $3.19 million, $3.19 million, and $3.19 million for the three years ended March 31, 2022, March 31, 2023 and March 31, 2024, respectively. Joint Harvest, as a holding company incorporated in the BVI,