Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 135

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 18
Chunk 135
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  Cash flows from financing activities                                                                                                                                     
  Dividends paid                                                                                                   ( 3,188                 ( 3,188                ( 3,188  
  Net cash used in financing activities                                                                            ( 3,188                 ( 3,188                ( 3,188  
  Net increase (decrease) in cash and cash equivalents                                                               8,695                 ( 6,410                 12,383  
  Cash and cash equivalents, beginning of year                                                                      13,465                  22,160                 15,750  
  Cash and cash equivalents, end of year                                                 $                          22,160      $           15,750      $          28,133  
  Supplementary disclosures of cash flow information:                                                                                                                      
  Cash paid during the year for:                                                                                                                                           
  Interest                                                                               $                               —      $                —      $               —  
  Income taxes                                                                           $                             418      $              227      $             156  

See accompanying notes to consolidated financial statements.

F-6

Table of Contents

DESWELL INDUSTRIES, INC.

1. Organization and Basis of Financial Statements

Deswell Industries, Inc. was incorporated in the British Virgin Islands onDecember 2, 1993.

The principal activities of the Company comprise the manufacturing and sales of injection-moldedplastic parts and components and electronic products assembling. The manufacturing activities are subcontracted to subsidiaries operating in the People’s Republic of China (“ PRC”). The selling and administrative activities were originally performed in the Hong Kong Special Administrative Region (“ Hong Kong”) of the PRC. From August 2003, these activities were moved to the Macao Special Administrative Region (“ Macao”) of the PRC.

As the Company is a holding company, the amount of any dividends to be declared by the Company will be dependent upon the amount which can be distributed from its subsidiaries. Dividends from subsidiaries are declared based on profits as reported in their statutory accounts.

2. Summary of Significant Accounting Policies

Principles of consolidation - The consolidated financial statements, prepared in accordance with generally accepted accounting principles in the United States of America, include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries. Intercompany balances, transactions and cash flows are eliminated on consolidation.

Cash and cash equivalents - Cash and cash equivalents include cash on hand, cash accounts, interest bearing savings accounts and time certificates of deposit with a maturity of three months or less when purchased.

Marketable securities - All marketable securities are