Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 10

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 3
Chunk 10
---
 deposit our funds could result in a loss of those funds to the extent exceeding the amounts protected and could affect our ability to continue in business.

•Our industry is extremely competitive, with aggressive pricing dynamics, and if we are not able to continue to provide competitive products and services, we may lose business.

•We have no long-termcontracts to obtain plastic resins and our profit margins and operating results could suffer from an increase in resin prices.

•Shortages of components and materials used in our production of electronics products may delay or reduce our sales and increase our costs.

•We face inventory risks of obsolescence and impairment charges by providing turnkey manufacturing of electronic products.

•Our insurance coverage may not adequately cover losses related to major accidents, forces of nature or product liability risks.

•Our customers are dependent on shipping companies for delivery of our products and interruptions to shipping could materially and adversely affect our business and operating results.

•Protecting, seeking licenses for, or asserting claims over, intellectual property could be costly.

•We are dependent on customers operating in highly competitive markets and the inability of our customers to succeed in their markets can adversely impact our business, operating results and financial condition.

•Compliance with environmental regulations may be costly and could impact our future operating results.

•We may be required to write down long-livedassets, adversely affecting our future operating results.

•Potential new accounting pronouncements or changes in interpretation by NASDAQ may adversely impact our future financial position and results of operations in the future.

•Our exemptions from certain of the reporting requirements under the Exchange Act limits the protections and information afforded to investors.

•We have identified material weaknesses in our control over financial reporting. We are taking steps to remediate such weakness, but failure to do so, or the development of new material weaknesses in our internal control over financial reporting could result in material misstatements of our financial statements.

•The Chinese government could intervene in or influence our operations at any time and could change its policies toward or even nationalize private enterprise, which could result in the total loss of our investment in that country.

•The Chinese government could intervene in or influence the conduct of our directors or officers with ties to Hong Kong at any time, which could materially impact our results of operations.

Table of Contents

•Recent developments in Chinese law related to overseas securities offerings by China-basedissuers may hinder our ability to offer or continue to offer our securities to investors and cause the value of our securities to significantly decline or be worthless.

•The enforcement of laws and rules and regulations in China can