Document:

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[STANDARD CHARTERED LETTERHEAD]

                                                                     EXHIBIT 4.7

STRICTLY PRIVATE & CONFIDENTIAL

DONGGUAN KWAN HONG ELECTRONICS CO., LTD.
(Chinese Translation Of The Company Name.)

Date: 6 May 2003

Dear Sirs,

                   REVOLVING SHORT TERM RENMINBI LOAN FACILITY

We refer to the recent discussions regarding the financing requirements of
DONGGUAN KWAN HONG ELECTRONICS CO., LTD., (herein referred to as "the Company")
and are pleased to confirm that STANDARD CHARTERED BANK, SHENZHEN BRANCH (herein
referred to as "the Bank") is willing to make the following revolving short term
Renminbi facility available to the Company.

THE FACILITY - REVOLVING SHORT TERM LOAN

         AMOUNT:       The maximum amount drawn, utilised or outstanding under
                       the facility shall not exceed in aggregate
                       RMB21,000,000.-.

         PURPOSE:      To partial finance acquisition of existing factory.-.

         AVAILABILITY: The offer of finance contained in this facility letter is
                       available for acceptance by the Company within 30 days of
                       the date hereof. The facility is available for drawdown
                       at the Bank's sole discretion after the date of the
                       Company's acceptance of this letter. It is thereafter
                       subject to periodic review by the Bank at its discretion,
                       and it is expressly agreed that they will at all times be
                       available at the sole discretion of the Bank.
                       Notwithstanding any other provisions contained in this
                       letter or in any other document, the Bank will at all
                       times have the right to require immediate payment
                       and / or cash collateralisation of all or part of any
                       sums actually or contingently owing to it, and the right
                       to immediately terminate or suspend, in whole or in part,
                       the facility and all further utilisation of the facility
                       without prior notice to the Company.

         DRAWINGS:     Subject to availability of funds, advance may be drawn in
                       minimum amount of RMB1,000,000.- and any multiples
                       thereof for periods of 1, 2, 3, 6 and 12 months. Advances
                       may be drawn subject to receipt by the Bank of prior
                       written notice as follows:

                       a)  for drawing amount less than RMB10,000,000.-: 3 days;

                       b)  for drawing amount equal to/more than
                           RMB10,000,000.-: 4 days;

                       The notice will be irrevocable and binding on the
                       Company. The Company may repay an advance, which may
                       subsequently be drawn again. Advances maturing on the
                       same date may be consolidated into a single advance at
                       the sole discretion of the Bank.

                                              *** RENMINBI FACILITY LETTER *** 1
<PAGE>

         TENOR:        Up to 1 year.

         REPAYMENT:    Unless otherwise agreed by the Bank, all outstanding
                       advances shall be repaid within 1 year after the actual
                       drawdown date of such drawing (each is referred to as a
                       "Repayment Date").

         INTEREST:     Interest will be collected at the interest rate permitted
                       by the People's Bank of China (i.e. 10% below base rate
                       announced by PBOC, currently base rate is 5.04% for tenor
                       up to 6 months and 5.31% for tenor from 6 months up to
                       one year), and will be payable in arrears on the Interest
                       Payment Date by debiting to the Company's account with
                       the Bank on Interest Payment Date. Therefore the Company
                       should ensure that sufficient funds are maintained in its
                       account before Interest Payment Date. For the purpose of
                       this letter, "Interest Payment Date" means the twentieth
                       day of each month and/or (as the case may be) the
                       relevant Repayment Date applicable to a Drawing.

         PREPAYMENT:   Allowed, in minimum amount of RMB500,000.- and any
                       integral multiples thereof subject to the Company giving
                       at least 16 days prior written notice. In the event of
                       prepayment, the Bank reserves the right to charge any
                       prepayment fee at its sole discretion. All breakfunding
                       costs are for the Company's account.

         CLEAN UP
         CLAUSE:       Individual drawings may be rolled over at the sole
                       discretion of the Bank and the accumulated tenor shall
                       not exceed the stated maximum tenor of 1 year.

CONDITIONS PRECEDENT

         Without prejudice to other provisions of this facility letter, this
         facility and subsequent renewals will become available only on receipt
         by the Bank of the documents listed in the Schedule and the Attachment
         duly certified by a director or legal representative of the Company
         together with Company chop.

SECURITY

         Corporate guarantee for HKD20,000,000.- in the Bank's standard form
         issued by Deswell Industries Inc.

TOP UP CLAUSE

         The Bank reserve the right to require Top-Up of the security or repay
         outstanding principal if any material adverse movement greater than 5%
         in the exchange rate between HKD and RMB.

COVENANTS

         The Company undertakes that it will:

                                              *** RENMINBI FACILITY LETTER *** 2

<PAGE>

         i.   obtain and maintain current all approvals, licences and consents
              required under Chinese law to enable it to enter into and perform
              its obligations under this letter, which shall be legally
              enforceable and admissible in China;

         ii.  ensure that at all times the claims of the Bank against the
              Company under this letter rank at least pari passu with the claims
              of all other foreign banks granting similar facilities to the
              Company or those of all its other present and future unsecured and
              unsubordinated creditors;

         iii. provide to the Bank at the Bank's request the Company's valid
              lending IC control card(s) for the Bank's inspection and input of
              information to the Credit Registration & Consultation System
              ("System"); and

         iv.  at each annual renewal of the Company's lending IC control
              card(s), promptly provide such card(s) to the Bank to enable the
              Bank to verify and continue input of information to the System.

REPRESENTATION

         The Company represents that this facility letter is legal, valid,
         binding and enforceable on the Company.

TAXES

         All payments due from the Company to the Bank must be made free and
         clear of all taxes, deductions and withholdings of whatever nature.

EVENTS OF DEFAULT

         If the Company is in breach of any term of this facility letter or if
         the Bank is of the opinion at any time that circumstances exist that
         could adversely affect the ability or willingness of the Company to
         comply with its obligations under this facility letter, then the
         facility is repayable on first demand by the Bank.

DEFAULT INTEREST

         The rate of interest applicable to an Advance in respect of amounts due
         but unpaid shall be the Default Rate (For the purpose of this letter,
         'Default Rate' means the rate prescribed by the PBOC as default rate
         from time to time [currently 0.021% per day]) calculated from the
         date of default until the date on which the Bank receives payment in
         full of the sum due.

FEES AND EXPENSES

         Whether or not the documentation for the facility is executed or the
         facility is made available to the Company as contemplated following the
         Company's acceptance of this letter, the Company shall forthwith on
         demand reimburse the Bank all out of pocket expenses (including but not
         limited to stamp duty, legal fees and disbursements) incurred by the
         Bank in connection with the facility including, without limitation, the
         negotiation, preparation, execution and/or enforcement of this letter.

                                              *** RENMINBI FACILITY LETTER *** 3

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     Stamp duty cost incurred by the Bank will be payable upon the Bank's
     receipt of returned and signed facility letter. It will be reimbursed by
     debiting the Company's RMB account with the Bank. Therefore the Company
     should ensure that sufficient funds are maintained in its account after
     acceptance of this letter. Should the payable remain outstanding when the
     facility is going to be utilized, the Bank has the right to deduct the
     payable amount from the drawdown proceeds without prior notice to the
     Company.

COSTS

     The Company indemnifies the Bank against any claim, cost, loss or expense
     incurred by the Bank as a result of default by the Company in the payment
     of any sum due under this letter, or the refusal of the Bank to grant an
     advance, or of the repayment of an advance on a date other than an interest
     payment date (including, without limitation, any broken funding costs).

INCREASED COSTS

     If any change in, or in the interpretation of or compliance with any law or
     regulation subjects the Bank to tax in respect of sums payable by the
     Company hereunder (other than tax on the Bank's overall net income), or
     reduces the amount of any payment receivable by the Bank hereunder, then
     the Company shall pay the Bank on demand all amounts needed to compensate
     the Bank therefor. Provided that the Company shall not be liable in respect
     of any increased costs of which the Bank shall have become aware and failed
     to notify the Company promptly if and to the extent prompt notice could
     have avoided or lessened payments by the Company hereunder. So long as the
     circumstances giving rise to such increased costs continue, the Company
     may, after giving the Bank not less than three business days' prior notice,
     prepay all of the outstanding principal of the facility together with
     interest accrued thereon to the date of payment and all other moneys
     payable hereunder, and upon the giving of such notice, the facility shall
     be cancelled.

SET-OFF

     The Company authorizes the Bank to apply any credit balance on any of the
     Company's accounts with the Bank in repayment of any sum due from the
     Company to the Bank but unpaid. The Bank is authorized to purchase with the
     amounts in any such account such other currencies as may be necessary to
     effect such repayment.

MISCELLANEOUS

     All payments to be made by the Company under this letter shall be made in
     Renminbi in same day funds to an account specified by the Bank.

ASSIGNMENT

     The Bank (but not the Company) may assign all or any part of its rights
     under this letter and in that event the assignee shall have the same rights
     against the Company as it would have had if it had been party hereto.

                                                ***Renminbi Facility Letter*** 4

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GOVERNING LAW

         This letter is governed by and shall be construed in accordance with
         the laws of PRC and the Company hereby submits to the non-exclusive
         jurisdiction of the courts of PRC. The Company agrees that any
         communication to it shall be deemed to has been delivered if sent by
         any means to the latest address advised by the Company to the Bank.

DOCUMENTATION

         This letter summarizes the principal terms of banking facility provided
         to the Company by the Bank. Operation of the facility will require
         completion of standard documentation from time to time in accordance
         with the then current practices of the Bank.

         Before the above facility may be used, the enclosed copy of this letter
         and the Bank's standard form General Customer Agreement (96) and Rider
         1 must be signed and returned to us together with appropriate
         authorizing board resolutions.

         In addition to this, other documentation (please see the attachment)
         will also be required prior to utilization of the facility.

         The following documents are to be submitted to the Bank at their
         respective due dates:

         1.   a signed original copy of the Company's audited annual financial
              statements within 120 days after its financial year end.

         2.   a signed original copy of the Company's semi-annual financial
              statements within 60 days after the end of the relevant accounting
              period.

By acceptance of this letter the Company gives consent to the Bank to disclose
details of the Company's account relationship with the Bank, including credit
balances and any security given for the facility, to (i) the head office and any
branch, related company, associate, agent, contractor or third party service
provider or representative of Standard Chartered Bank, (ii) any proposed
assignee of the Bank or participant in any of its rights in relation to the
Company, and (iii) any financial institution with which the Company has or
proposes to have dealings.

To signify your agreement to the above arrangement, please sign and return to us
the duplicate of this letter on/before 6 June 2003 following which the Bank's
offer shall lapse. Your acceptance of the facility and issuance of the
supporting security documents should be authorized by a board resolution and a
certified true copy of the relative board minutes forwarded to the Bank. In this
connection, please arrange for due execution of the enclosed documents as in the
Attachment.

The facility detailed above will not become operative until all terms and
conditions have been complied with to the satisfaction of the Bank.

                                              *** RENMINBI FACILITY LETTER *** 5

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In case of any queries, please feel free to contact Ms. MARGARET LIN, [TELEPHONE
NO.: 0755-82461688] who will be more than happy to assist you with the execution
of the required documentation. Please return the duly executed documents to
Standard Chartered Bank Shenzhen Branch, Unit 1-8, 52F, Shun Hing Square, Di
Wang Commercial Centre, No.5002, Shennan Road East Shenzhen China 518008.

We are pleased to be of service to you.

                                Yours faithfully,

For and on behalf of STANDARD CHARTERED BANK SHENZHEN BRANCH

                                                                        [SEAL]

/s/ Margaret Lin                                /s/ Irving Law
------------------------------                  --------------------------------
MARGARET LIN                                    IRVING LAW
RELATIONSHIP MANAGER                            REGIONAL HEAD, SOUTH CHINA
STANDARD CHARTERED BANK                         STANDARD CHARTERED BANK
SHENZHEN BRANCH

We hereby agree to accept and abide by the above terms and conditions.

                                                                        [SEAL]

/s/ [ILLEGIBLE]
------------------------------
For and on behalf of
DONGGUAN KWAN HONG ELECTRONICS CO., LTD.
Authorised signature & Company chop

                                              *** RENMINBI FACILITY LETTER *** 6

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SCHEDULE OF DOCUMENTS ENCLOSED FOR COMPLETION/EXECUTION AS APPROPRIATE:

1. Banking Facility Letter (Duplicated copy) and supporting Board Minutes.

2. General Customer Agreement (96) with Rider and supporting Board Minutes.

3. Corporate guarantee for HKD20,000,000.- in the Bank's standard form issued
   by Deswell Industries Inc and supporting Board Minutes.

                                                ***Renminbi Facility Letter*** 7

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ATTACHMENT(S):

1.   Municipal government approval for operating business (issued by Foreign
     Economic Trade Relation Commission)/Ministry of Foreign Trade and Economic
     Cooperation approval for operating business

2.   Legal Person Code Certificate issued by the State Bureau for Technology
     Supervision

3.   Business License with 2002 annual check record

4.   Articles of Association and relevant approval

5.   Current list of directors with certified true copies of ID card or passport

6.   Specimen signature of the person(s) authorized to sign the Security
     Documents with their certified true copies of ID card or passport

7.   Any other security documents/evidence/information as the PRC laws or
     regulations or the Bank may require from time to time in respect of this
     facility letter, the opening and operation of accounts and making,
     maintaining or repayment of advances as contemplated hereby.

                                              *** RENMINBI FACILITY LETTER *** 8<PAGE>

                                                                     EXHIBIT 4.8

                                   TRANSLATION

                                TENANCY AGREEMENT

         Lessor (Party A)     :     Shenzhen Shekou Yu Yi Shareholding Co. Ltd.

         Address              :     1/F, Yu Yi Building, Yu Yi Estate, Shekou
                                    Shenzhen
         "Leased Property Permit"  :     D13323
         Representative       :
         Address              :

         Lessee (Party B )    :     Jetcrown Industrial (Shenzhen) Limited
         Address              :     2/F, Block D, Wing Village Industrial Estate
                                    Shekou
         Business Registration No. or Identity Card No.:

                  According to "Shenzhen Special Economic Zone Leased Property
Ordinance" and its executing regulations, and through the sufficient negotiation
of Party A and Party B, they signed this contract.

The contents of the contract are as follows:

         1.   Party A owns and leases the property situate at 1/F-2/F, Block A,
              Wing Village Industrial Estate, Nan Shan District, Shenzhen (two
              floors in total) to Party B. The construction area is 2,051.00
              square meters in total.

         2.   The rental period for the said property is three years, starting
              from 1 June 2002 to 31 May 2005.

         3.   Party B can use the property for industrial purpose. In case Party
              B use the property for the other purpose, the approval of Party A
              should be sought. And Party B should complete all the reporting
              and approval procedures in respect of the change of property use
              according to the relevant legal regulations. And such change
              should be comply with the relevant fire prevention and security
              regulations of the country.

         4.   Party A should make sure the usage of the property as mentioned in
              Term 3 above complies with the relevant rules and regulations. On
              the other hand, Party B should make sure the property usage
              complies with the rules as well during the rental period.

<PAGE>

         5.   The rental for the property is calculated at DOLLARS TWENTY SIX
              RENMINBI (RMB26.00) AND EIGHTEEN RENMINBI (RMB18.00) per square
              meter of construction area per month for 1/F and 2/F respectively.
              Total monthly rental is DOLLARS FORTY FIVE THOUSAND NINETY FOUR
              RENMINBI (RMB45,094.00). Rentals shall be paid on or before the
              15th day of each month.

         6.   Party A should hand over the property for Party B use before 1
              June 2002. If the hand over date is later than that of the
              aforementioned, Party B is entitled to request to defer the
              effective date of the agreement, both parties should provide this
              term in writing.

         7.   During the rental period, Party A shall be responsible to pay for
              the property tax, landuse fees and the rental housing management
              fees of the property. Party B shall be responsible for the water,
              electricity, cleaning and management charges and related charges.

         8.   For the first month, Party A pay on behalf of Party B for those
              expenses should be borne by Party B. Party B should repay the said
              sum within ten days after the first month of usage. After that,
              Party B should prepay the said expenses. The amount to be prepaid
              equals to the actual sum for the previous month. The prepayment
              will be settled in next month. Party A should provide relevant
              documents to support the amount he collected. If Party B prepays
              the sum less than that for the whole month, Party A has the right
              to request Party B to do so. If Party B doesn't pay for a month,
              Party A is entitled to stop the provision of the relevant
              facilities for Party B's use. In case both parties provided
              otherwise, it will follow their agreement.

         9.   This agreement sets out to provide the deposit guarantee. When
              Party A hand over the property, he is entitled to collect a
              guarantee sum, equals to three months' rental. The guarantee sum
              is DOLLARS ONE HUNDRED EIGHTEEN THOUSAND SIX HUNDRED SIXTY EIGHT
              RENMINBI (HKD118,668.00). After receiving the guarantee sum from
              Party B, Party A should provide receipt to Party B. Both parties
              should take the initiative to comply with all the terms set out in
              this agreement. If either party breaks the contract, then he
              should bear the legal responsibilities arising from this break.

         10.  Party A should ensure the security of the property and its
              internal facilities complies to the relevant provisions of rules
              and regulations. Party B should use the property in normal way and
              protect the internal facilities of the property and prevent any
              abnormal damage. Upon the expiry of the agreement, Party B should
              hand over the property on time and ensure the property and its
              facilities are in good conditions ( except normal depreciation),
              and should settle all those expenses borne by Party B.

<PAGE>

         11.  During the rental period, if there is an occurrence of damage or
              out of order of the property and its facilities which will prevent
              its safe and normal use, Party B should inform Party A in time
              and carry out effective measures; Party A after receiving Party
              B's notice should carry out repairs and maintenance works within
              three days; if Party B cannot reach Party A or Party A refuses to
              repair, Party B can repair it instead after getting the
              certification of the agreement registration authority. Party A
              should bear the expenses arising from any maintenance (including
              those paid by Party B on behalf) under this term.

         12.  If there is an occurrence of damage or out of order of the
              property and its facilities which arising from Party B's improper
              or unreasonable use, Party B should bear this responsibilities and
              repair or provide compensation in time. If Party B refuses to
              repair or compensate, Party A can repair it on behalf of Party B
              after getting the certification of the agreement registration
              authority. The repairs and maintenance charges should be borne by
              Party B.

         13.  During the tenancy period, if Party A wants to alter, expand or
              renovate the property because of needs, with the agreement of
              Party B and approval of the relevant government department,
              improvement works can be carried out then. Both parties should
              sign a separate written agreement on this area. Similarly, Party B
              can renovate the property with the agreement of Party A and the
              approval of the relevant government department. Regarding this
              area, a separate written agreement is required as well.

         14.  Without the written agreement of Party A, Party B is not allowed
              to sublet the property to third party either partly or wholly.
              With Party A's agreement to sublet the properly, Party B should
              complete the registration procedures with the Leasing Property
              Department. But the period of sublet should not be longer than
              that of the original tenancy agreement made between Party A and B.
              Party B should also make sure the third party will not re-sublet
              the property to the fourth party.

         15.  During the tenancy period, Party A wants to sell the property
              either wholly or partly, he should give one month notice to Party
              B. Party B has the first priority to purchase the property under
              the same conditions offered by the third party. If the property
              right has been transferred to a third party, Party A should make
              sure the new owner completed the contract as if the property right
              hasn't change.

<PAGE>

         16.  During the tenancy period, the contract will be terminated
              automatically under either one of the following conditions:

              (1)      an occurrence of natural disasters or accident, and as a
                       result the contract cannot be completed;

              (2)      the government decides to make a requisition of the land
                       on which the aforesaid property builds and the property
                       has to torn down as a result;

         17.  Party A reserves the right to terminate the contract because of
              either one of the following conditions. Party B should indemnify
              Party A for any loss incurred by the latter because of the
              termination of the contract.

              (1)      Party B doesn't pay the rental;

              (2)      The miscellaneous expenses should be paid by B becomes
                       overdue;

              (3)      Without the permission of Party A and the relevant
                       government department, Party B change the use of the
                       property;

              (4)      Party B in breach of the provision set out in Item (12),
                       in other words, he refused to bear the responsibility of
                       repair and maintenance or paid the related expenses and
                       as a result, the property becomes serious damaged;

              (5)      Without the written permission of Party A and the
                       relevant government department, Party B renovate the
                       property;

              (6)      Without the permission of Party A, Party B sublet the
                       property to third party.

              Party A terminates the contract based on the aforesaid situations,
              he should order Party B to move out and take possession of the
              property by giving a written notice. Any remaining balance of the
              prepaid amount made by Party B should be returned to Party B. But
              Party B has no right to request the refund of rental deposit.

<PAGE>

         18.  Party B reserves the right to terminate the contract because of
              the following conditions. Party A should compensate Party B for
              any loss incurred arising from the termination.

              (1)      Party A delayed the handover of the property;

              (2)      Party A in breach of the contract term (4), as a result,
                       the property cannot be used for the purpose as stated
                       before;

              (3)      Party A in breach of the contract term (11), in other
                       words, he refused to bear the responsibility of repair
                       and maintenance or paid the related expenses, and as a
                       result, the property cannot be used for the purpose as
                       stated before;

              (4)      Without the agreement of Party B and the approval of the
                       relevant government department, Party A carries out the
                       alteration, expansion, or renovation works.

              Party B terminates the contract because of the aforesaid
              conditions, he should give a written notice to Party A and he
              should move out at once. In this situation, Party B has the right
              to request Party A to compensate two times of the rental deposit,
              and refund the excess amount of the prepayment.

         19.  Upon the expiry of the tenancy agreement, if Party B wants to
              renew the contract, he should inform Party A one month before the
              expiry. If Party A continues to rent out the property, Party B
              should be given a first priority to be the lessee under the same
              conditions as offered by third party. If both parties can reach an
              agreement on renewal, they should sign a new contract, which
              should be re-registered with the Contract Registration Registry.

         20.  Upon the expiry of the contract, Party B should move out within
              fifteen days of the expiry and then hand over the same to Party A.
              Party B doesn't move out and hand over the property, Party A can
              sue Party B through Court of People.

         21.  If Party B doesn't pay the rental, he should pay a delay charge to
              Party A The delay charge should be number of days times the
              monthly rental.

         22.  If Party B sublet wholly or partly of the property to third party
              without getting the permission of Party A, he is then required to
              pay an indemnity.

         23.  If either party do not comply with the terms of the contract, and
              any loss of the other party arises from this, the party who break
              the contract should indemnify the actual loss and expected income
              of the victim party.

         24.  If both parties want to insert or delete terms, it can be made in
              the Supplementary Clause. The provisions of Supplementary Clause
              and the main contract are of equal validity. If there shall be
              anything that is not provided for by this agreement, the parties
              can make any supplement after negotiation, and the supplement will
              of equal validity with the main contract only after the
              certification of the Contract Registration Registry.

<PAGE>

         25.  If there shall be any dispute arising through fulfillment, it
              should be solved by the discussions and negotiations of the
              parties. If there shall be no agreement made in negotiation,
              mediation can be made through the Contract Registration Registry
              or (1) request arbitration from the Shenzhen Arbitrating Committee
              (2) raise a prosecution in People's Court. ( Both parties should
              choose either one of the above two ways and tick as appropriate on
              the contract).

         26.  This contract is written in Chinese.

         27.  This contract is made in four copies, Party A gets one copy and
              Party B gets one copy and one copy kept in the Contract
              Registration Registry and one copy to the relevant department.

         28.  This contract takes effect after signed by two parties.

         Party A (Signature & Chop): <Signed>
         Authorized Representative:
         Contact Telephone No.: 6699769
         Bank Account No.:
         Authorized Agent (Signature & Chop):

         Party B (Signature & Chop): <Signed>
         Authorized Representative:
         Contact Telephone No.: 6687804
         Bank Account No.:
         Authorized Agent (Signature & Chop):

         Register (Signature & Chop): <Signed>

                                      May 29, 2002

         Contract Registration Registry ( Signature & Chop ): <Signed>
                                      May 29, 2002

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