Document And Entity Information
Document And Entity Information | 12 Months Ended |
Mar. 31, 2023 shares | |
Document Information Line Items | |
Entity Registrant Name | DESWELL INDUSTRIES, INC |
Trading Symbol | DSWL |
Document Type | 20-F |
Current Fiscal Year End Date | --03-31 |
Entity Common Stock, Shares Outstanding | 15,935,239 |
Amendment Flag | false |
Entity Central Index Key | 0000946936 |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | No |
Document Period End Date | Mar. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-33900 |
Entity Incorporation, State or Country Code | D8 |
Entity Address, Address Line One | 10B, Edificio Associacao Industrial De Macau |
Entity Address, Address Line Two | 32 Rua do Comandante Mata e Oliveria |
Entity Address, City or Town | Macao |
Entity Address, Country | VG |
Title of 12(b) Security | Common shares, no par value |
Security Exchange Name | NASDAQ |
Entity Interactive Data Current | No |
Document Accounting Standard | U.S. GAAP |
Auditor Firm ID | 1818 |
Auditor Name | BDO China Shu Lun Pan Certified Public Accountants LLP |
Auditor Location | People’s Republic of China |
Document Financial Statement Error Correction [Flag] | false |
Entity Address, Postal Zip Code | 0000 |
Business Contact | |
Document Information Line Items | |
Contact Personnel Name | Herman Wong |
Entity Address, Address Line One | 10B, Edificio Associacao Industrial De macau |
Entity Address, Address Line Two | 32 Rua do Comandante Mata e Oliveira |
City Area Code | 853 |
Local Phone Number | 28-322096 |
Contact Personnel Email Address | hermanwong@jetcrown.net |
Entity Address, City or Town | Macao |
Entity Address, Country | VG |
Entity Address, Postal Zip Code | 0000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 22,160 | $ 13,465 |
Time deposits with original maturities over three months | 3,053 | 4,354 |
Time deposits with original maturities over twelve months - current | 1,047 | 1,564 |
Marketable securities (note 3) | 20,722 | 24,499 |
Accounts receivable, less allowances for credit losses of $268 and $39 at March 31, 2022 and 2023, respectively (note 2) | 15,704 | 18,195 |
Inventories, net (note 4) | 17,325 | 23,819 |
Prepaid expenses and other current assets (note 5) | 1,149 | 1,926 |
Total current assets | 81,160 | 87,822 |
Property, plant and equipment, net (note 6) | 26,051 | 27,017 |
Deferred tax assets (note 8) | 262 | 259 |
Time deposits with original maturities over twelve months | 2,906 | 313 |
Total assets | 110,379 | 115,411 |
Current liabilities: | ||
Accounts payable | 6,949 | 9,838 |
Accrued payroll and employee benefits | 7,943 | 7,611 |
Customer deposits | 2,216 | 2,343 |
Other accrued liabilities (note 7) | 1,989 | 2,950 |
Income taxes payable | 1,149 | 1,232 |
Total current liabilities | 20,246 | 23,974 |
Deferred income tax liabilities (note 8) | 484 | 659 |
Total liabilities | 20,730 | 24,633 |
Commitments and contingencies (note 10) | ||
Shareholders’ equity: | ||
Common shares nil par value; authorized 30,000,000 shares as of March 31, 2022 and 2023; 17,081,810 and 17,081,810 shares issued as of March 31, 2022 and 2023; 15,935,239 and 15,935,239 shares outstanding as of March 31, 2022 and 2023 | 53,202 | 53,202 |
Treasury stock at cost; 1,146,571 shares as of March 31, 2022 and 2023 | (2,821) | (2,821) |
Additional paid-in capital | 7,973 | 7,973 |
Accumulated other comprehensive income | 5,316 | 5,316 |
Retained earnings | 25,979 | 27,108 |
Total shareholders’ equity | 89,649 | 90,778 |
Total liabilities and shareholders’ equity | $ 110,379 | $ 115,411 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances for credit losses (in Dollars) | $ 39 | $ 268 |
Common shares, authorized | 30,000,000 | 30,000,000 |
Common shares, issued | 17,081,810 | 17,081,810 |
Common shares, outstanding | 15,935,239 | 15,935,239 |
Common shares, no par value (in Dollars per share) | ||
Treasury stock, at cost | 1,146,571 | 1,146,571 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net sales | $ 77,337 | $ 85,980 | $ 64,886 |
Cost of sales | 64,498 | 72,028 | 51,720 |
Gross profit | 12,839 | 13,952 | 13,166 |
Selling, general and administrative expenses | 10,966 | 11,267 | 10,310 |
Other income, net (note 13) | 1,014 | 74 | 405 |
Operating income | 2,887 | 2,759 | 3,261 |
Non-operating (expenses) income, net (note 14) | (573) | 5,308 | 5,445 |
Income before income taxes | 2,314 | 8,067 | 8,706 |
Income tax expense (benefit) (note 8) | 255 | (165) | 475 |
Net income attributable to Deswell Industries, Inc. | 2,059 | 8,232 | 8,231 |
Other comprehensive income (loss) | |||
Total comprehensive income attributable to Deswell Industries, Inc. | $ 2,059 | $ 8,232 | $ 8,231 |
Basic: | |||
Net income per share (in Dollars per share) | $ 0.13 | $ 0.52 | $ 0.52 |
Weighted average common shares outstanding (shares in thousands) (in Shares) | 15,935,000 | 15,929,000 | 15,915,000 |
Diluted: | |||
Net income per share (in Dollars per share) | $ 0.13 | $ 0.51 | $ 0.51 |
Weighted average common shares outstanding (shares in thousands) (in Shares) | 16,072,000 | 16,135,000 | 16,047,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY - USD ($) $ in Thousands | Common stock | Treasury Stock | Additional paid-in capital | Accumulated other comprehensive income | Retained earnings | Total |
Balance at Mar. 31, 2020 | $ 53,143 | $ (2,821) | $ 7,989 | $ 5,316 | $ 16,695 | $ 80,322 |
Balance (in Shares) at Mar. 31, 2020 | 17,061,810 | (1,146,571) | ||||
Net income | 8,231 | 8,231 | ||||
Dividends ($0.18, $0.2 and $0.2 per share for March 31, 2021, March 31, 2022 and March 31, 2023 respectively) | (2,864) | (2,864) | ||||
Balance at Mar. 31, 2021 | $ 53,143 | $ (2,821) | 7,989 | 5,316 | 22,062 | 85,689 |
Balance (in Shares) at Mar. 31, 2021 | 17,061,810 | (1,146,571) | ||||
Exercise of stock options | $ 59 | (16) | 43 | |||
Exercise of stock options (in Shares) | 20,000 | |||||
Net income | 8,232 | 8,232 | ||||
Dividends ($0.18, $0.2 and $0.2 per share for March 31, 2021, March 31, 2022 and March 31, 2023 respectively) | (3,186) | (3,186) | ||||
Balance at Mar. 31, 2022 | $ 53,202 | $ (2,821) | 7,973 | 5,316 | 27,108 | 90,778 |
Balance (in Shares) at Mar. 31, 2022 | 17,081,810 | (1,146,571) | ||||
Net income | 2,059 | 2,059 | ||||
Dividends ($0.18, $0.2 and $0.2 per share for March 31, 2021, March 31, 2022 and March 31, 2023 respectively) | (3,188) | (3,188) | ||||
Balance at Mar. 31, 2023 | $ 53,202 | $ (2,821) | $ 7,973 | $ 5,316 | $ 25,979 | $ 89,649 |
Balance (in Shares) at Mar. 31, 2023 | 17,081,810 | (1,146,571) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends | $ 0.2 | $ 0.2 | $ 0.18 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 2,059 | $ 8,232 | $ 8,231 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,709 | 1,736 | 1,755 |
Provision for (reversal of) credit losses, net | (229) | (148) | 397 |
Allowance for obsolete inventories, net | 116 | (25) | |
Loss (gain) on disposal of property, plant and equipment | (18) | 24 | (22) |
Unrealized holding loss (gain) on marketable securities | 3,973 | (872) | (2,010) |
Gain on sales of marketable securities | (581) | (1,073) | (333) |
Deferred income tax expense (benefit) | (178) | (557) | 206 |
Scrip dividend received | (19) | ||
Exchange loss (gain) arising from marketable securities | 117 | (661) | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2,720 | (3,339) | (2,804) |
Inventories | 6,378 | (7,601) | (7,615) |
Prepaid expenses and other current assets | 777 | 563 | (737) |
Accounts payable | (2,889) | 316 | 4,918 |
Accrued payroll and employee benefits | 332 | 504 | 1,030 |
Customer deposits | (127) | 660 | 511 |
Other accrued liabilities | (961) | 934 | 298 |
Income taxes payable | (83) | 346 | 151 |
Net cash provided by (used in) operating activities | 12,998 | (183) | 3,296 |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | (792) | (1,504) | (551) |
Proceeds from sale of property, plant and equipment, net of transaction costs | 67 | 50 | 81 |
Purchase of marketable securities | (3,469) | (11,543) | (6,059) |
Proceeds from sales of marketable securities | 3,854 | 11,245 | 6,150 |
(Increase) decrease of fixed deposits with original maturities over three months | 1,301 | (1,654) | (1,917) |
Increase of fixed deposits with original maturities over twelve months | (2,076) | (26) | (427) |
Net cash used in investing activities | (1,115) | (3,432) | (2,723) |
Cash flows from financing activities | |||
Dividends paid | (3,188) | (3,186) | (2,864) |
Proceeds from exercise of stock options | 43 | ||
Net cash used in financing activities | (3,188) | (3,143) | (2,864) |
Net increase (decrease) in cash and cash equivalents | 8,695 | (6,758) | (2,291) |
Cash and cash equivalents, beginning of year | 13,465 | 20,223 | 22,514 |
Cash and cash equivalents, end of year | 22,160 | 13,465 | 20,223 |
Cash paid during the year for: | |||
Interest | |||
Income taxes | $ 418 | $ 68 | $ 236 |
Organization and Basis of Finan
Organization and Basis of Financial Statements | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Basis of Financial Statements [Abstract] | |
Organization and Basis of Financial Statements | 1. Organization and Basis of Financial Statements Deswell Industries, Inc. was incorporated in the British Virgin Islands on December 2, 1993. The principal activities of the Company comprise the manufacturing and sales of injection-molded plastic 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. COVID-19 Considerations Prior to December 2022, the PRC government was still adopting zero-COVID policy to prevent the spread of the coronavirus in the community. It resulted some major cities in China being under partially lockdowns or district-based controls. Though the Company’s two principal manufacturing plants were not located in the cities under lockdowns, our staff were required to be quarantined in designated hotels for 7-21 days when they travelled from Hong Kong to the PRC cities. These border entry restrictions created challenges for productivity and connectivity, and could affect our ability to enhance, develop, and support existing products, detect and prevent production deficiencies, as well as exploring new business opportunities. The Company complied with the health and safety protocols established by the government and had taken steps to safeguard the employees and business operations. These steps included well-planned travel arrangements among the Company’s management team, actively cleaning and sanitizing open public areas to ensure the continuity and smooth supervision over plant production and administration under pandemic conditions. During the year ended March 31, 2023 the Company did not experience a significant negative impact of COVID-19 on its operations, capital and financial position. We did not record material asset impairments, inventory charges or bad debt provision related to COVID-19 during the year ended March 31, 2023. Starting from December 2022, most travel restrictions and quarantine requirements were lifted in China. Although the number of COVID-19 infections in some provinces of China increased during that month, the situation has been significantly improved and gradually normalized. However, it remains uncertainty as to the future development of the virus or if there would be a new variant with different characteristics. If the PRC government adopted the same policy (i.e. zero-COVID policy) to address this uncertain future situation, it would create the same challenges we had experienced in previous years and hence affect the effectiveness of our operation in China |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of consolidation Cash and cash equivalents Marketable securities Inventories Property, plant and equipment Leasehold land and buildings 30 - 50 years Plant and machinery 5 - 15 years Furniture, fixtures and equipment 4 - 5 years Motor vehicles 3 - 5 years Leasehold improvements Shorter of lease term or 2 - 5years Leases When the Company is the lessor, minimum contractual rental from leases is recognized on a straight-line basis over the non-cancelable term of the lease. With respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. If later, the billing amount exceeds the straight-line rental revenue, the variance will be credited to accrued straight-line rents receivable. Contingent rental revenue is accrued when the contingency is removed. Impairment of long-lived assets Revenue recognition Revenue from contracts with customers is recognized using the following five steps pursuant ASC Topic 606, Revenue from Contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. Products sales The Company recognizes revenue upon transfer of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Acceptance of delivery of the products is evidenced by goods receipt notes signed by the customer. The Company has no remaining obligations after the customer’s acceptance of the products. Under the terms of the contracts or purchase orders between the Company and the customer, the control of the products is transferred to the customer upon the signing of the goods receipt notes and the customer has no rights to return the products (other than for defective products). Some customers examine and pick up the products at our plant while some local customers instruct us to deliver the products to their plants nearby. Some overseas customers instruct us to deliver the products to the named port of shipment. Delivery of the products occurs at that point of time when the control of the products is transferred to the customer. The selling price, which is specified in the purchase orders, is fixed. Under the terms of the purchase orders, upon the sale of the products to the customer and the signing of the good receipts notes, the Company has the legally enforceable right to receive full payment of the sales price. The customer’s obligation to pay the Company is not dependent on the customer selling the products or collecting cash from their customers (or end customers). The customer is required to pay under normal sales terms. The Company’s normal payment terms range from 30 days to 90 days and its sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets or liabilities that are material to its consolidated financial statements. The Company permits the return of damaged or defective products and accounts for these actual returns as deduction from sales. Product returns to the Company were insignificant during past years. Incremental costs to fulfill the Company’s customer arrangements are expensed as incurred, as the amortization period is less than one year. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. VAT and business tax and surcharges collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Outbound freight and Handling costs: The Company accounts for product outbound freight and handling costs as fulfillment activities and present the associated costs in selling expenses in the period in which it sells the product. Disaggregation of Revenues: The following table disaggregates product sales by business segment and by geography, which provides information as to the major source of revenue. See Note 16 for additional description of our reportable business segments. Year ended March 31, 2021 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,349 $ 6,512 $ 7,861 PRC 17,081 7,824 24,905 United Kingdom 15 3,244 3,259 Hong Kong 1,248 6,890 8,138 Europe 169 9,395 9,564 Canada - 4,680 4,680 Others 3 6,476 6,479 Total net sales $ 19,865 $ 45,021 $ 64,886 Year ended March 31, 2022 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,014 $ 9,446 $ 10,460 PRC 20,430 14,018 34,448 United Kingdom 26 6,710 6,736 Hong Kong 1,666 9,927 11,593 Europe 209 13,212 13,421 Canada - 5,503 5,503 Others - 3,819 3,819 Total net sales $ 23,345 $ 62,635 $ 85,980 Year ended March 31, 2023 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,006 $ 11,163 $ 12,169 PRC 13,010 14,730 27,740 United Kingdom 2 9,106 9,108 Hong Kong 1,468 5,002 6,470 Europe 131 13,159 13,290 Canada - 4,699 4,699 Others - 3,861 3,861 Total net sales $ 15,617 $ 61,720 $ 77,337 Allowance for credit losses The Company estimated the expected credit losses for accounts receivable with similar risk characteristics on a pool basis. For each pool, the Company considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Company’s receivables. Additionally, macroeconomic factors are also considered. As at April 1, 2020, the Company assessed and concluded that the adoption did not have a material impact on the opening balance of retained earnings in the consolidated financial statements. Accounts receivable, net, as of March 31, 2022 and 2023 consisted of the following: March 31, 2022 2023 Accounts receivable $ 18,463 $ 15,743 Less: Allowance for credit losses (268 ) (39 ) Accounts receivable, net $ 18,195 $ 15,704 The movement of allowance for credit losses for the years ended March 31, 2021, 2022 and 2023 was as follows: Year ended March 31, Allowance for credit losses 2021 2022 2023 Balance at beginning of the year $ 954 $ 1,351 $ 268 Provision for (reversal of) credit losses, net 397 (148 ) (229 ) Written off - (935 ) - $ 1,351 $ 268 $ 39 The provision and reversal of credit losses for the years were charged to other income (expenses), net in consolidated statements of comprehensive income. Shipping and handling cost Income taxes The Company adopted the provisions of ASC No. 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides accounting guidance on de-recognition, classification, interest and penalties, disclosure and transition. Foreign currency translation All transactions in currencies other than the functional currency during the year are translated at the exchange rates prevailing on the transaction dates. Monetary items existing at the balance sheet date denominated in currencies other than the functional currencies are translated at period end rates. Gains and losses resulting from the translation of foreign currency transactions and balances are included in the consolidated statement of comprehensive income. The exchange rates between the Hong Kong dollars and the U.S. dollar were approximately 7.7904, 7.7904 and 7.7904 as of March 31, 2021, 2022 and 2023, respectively. The exchange rates between the Chinese Renminbi and the U.S. dollar were approximately 6.4819, 6.3924 and 6.8806 as of March 31, 2021, 2022 and 2023, respectively. Aggregate net foreign currency transaction (loss) gain included in other income (expenses) were, $567, $(352) and $(256) for the years ended March 31, 2021, 2022 and 2023, respectively. Post-retirement and post-employment benefits Stock-based compensation There were no stock options granted during the year ended March 31, 2021, 2022 and 2023. Net income per share Basic net income per share and diluted net income per share calculated in accordance with ASC No. 260, “Earnings Per Share”, are reconciled as follows (shares in thousands): Year ended March 31, 2021 2022 2023 Net income attributable to Deswell Industries, Inc. $ 8,231 $ 8,232 $ 2,059 Basic weighted average common shares outstanding 15,915 15,929 15,935 Basic net income per share $ 0.52 $ 0.52 $ 0.13 Year ended March 31, 2021 2022 2023 Basic weighted average common shares outstanding 15,915 15,929 15,935 Effect of dilutive securities - Options 132 206 137 Diluted weighted average common and potential common shares outstanding 16,047 16,135 16,072 Diluted net income per share $ 0.51 $ 0.51 $ 0.13 Use of estimates Fair value of financial instruments Fair value measurements It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. Non-recurring fair value measurements Fair value of long-lived assets, including real estate, are determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market. Significant increases or decreases in actual cash flows may result in valuation changes. For real estate, fair values are based on discounted cash flow estimates which reflect current and projected lease profiles and available industry information about capitalization rates and expected trends in rents and occupancy and are corroborated by external appraisals. Recently Adopted Accounting Pronouncements In July 2021, the FASB issued ASU 2021-05, Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. Effective April 1, 2022, the Company adopted ASU 2021-10, which did not have a material impact on the Company’s consolidated financial statements. Recent Accounting Pronouncement Not Yet Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
Marketable Securities
Marketable Securities | 12 Months Ended |
Mar. 31, 2023 | |
Marketable Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The Company acquired equity securities listed in Hong Kong Securities Exchange. March 31, 2022 2023 Cost $ 24,096 $ 24,292 Market value $ 24,499 $ 20,722 Included in non-operating (expenses) income, net unrealized (loss) gain for the years ended March 31, 2021, 2022 and 2023 of $2,010, $872 and $(3,973) respectively. Net proceeds from sale of marketable securities for the years ended March 31, 2021, 2022 and 2023 were $6,150, $11,245 and $3,854 respectively and realized gain from sales of marketable securities for the years ended March 31, 2021, 2022 and 2023 were $333, $1,073 and $581 respectively. For the purposes of determining realized gains and losses, the cost of securities sold was determined based on the average cost method. The marketable securities were classified as Level 1 of the hierarchy established under ASC No. 820 because the valuations were based on quoted prices for identical securities in active markets. |
Inventories, net
Inventories, net | 12 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Inventories, net | 4. Inventories, net Inventories, net of allowances, by major categories are summarized as follows: March 31, 2022 2023 Raw materials $ 16,970 $ 12,987 Work-in-progress 3,904 2,723 Finished goods 2,945 1,615 $ 23,819 $ 17,325 Obsolescence allowance for inventory is as follows: Year ended March 31, 2021 2022 2023 Balance at beginning of the year $ 4,316 $ 4,307 $ 4,282 (Written off) additional charges, net (9 ) (25 ) 116 Balance at the end of the year $ 4,307 $ 4,282 $ 4,398 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Mar. 31, 2023 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following: March 31, 2022 2023 Value added tax recoverable $ 27 $ - Rental and utility deposit 25 23 Advance to suppliers 260 129 Prepayment 649 429 Dividend receivable 115 164 Others 850 404 $ 1,926 $ 1,149 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment, net [Abstract] | |
Property, Plant and Equipment, net | 6. Property, Plant and Equipment, net Property, plant and equipment, net consist of the following: March 31, 2022 2023 At cost: Leasehold land and buildings $ 32,233 $ 32,233 Plant and machinery 37,313 37,293 Furniture, fixtures and equipment 10,748 10,734 Motor vehicles 1,583 1,431 Leasehold improvements 4,201 4,432 Impairment (2,781 ) (2,769 ) 83,297 83,354 Less: accumulated depreciation and amortization (56,280 ) (57,303 ) Net book value $ 27,017 $ 26,051 Included in furniture, fixtures and equipment is computer software with net values of $28 and $26 as of March 31, 2022 and 2023, respectively. Cost of leasehold land and buildings consist of the following: March 31, 2022 2023 Land use right of state-owned land and buildings erected thereon (a) $ 28,077 $ 28,077 Long term leased land and buildings erected thereon (b) 4,156 4,156 $ 32,233 $ 32,233 (a) The land use rights of state-owned land and buildings erected thereon represent land and buildings located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building with terms of 50 years expiring in 2050. (b) Long term leased land and buildings erected thereon represent land and buildings on collectively-owned land located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building for a term of 50 years to 2053. Dongguan Chang An Xiaobian District Co-operation, the lessor, is the entity to whom the collectively-owned land has been granted. According to existing PRC laws and regulations, collectively-owned land is not freely transferable unless certain application and approval procedures are fulfilled by the Dongguan Chang An Xiaobian District Co-operation to change the legal form of the land from collectively-owned to state-owned. As of March 31, 2023, the Company is not aware of any steps being taken by the Dongguan Chang An Xiaobian District Co-operation for such application. Included in leasehold land and buildings is property leased to third parties for rental income under operating lease with net values of $6,819 and $2,671 as of March 31, 2022 and 2023, respectively. Details of these property on lease are as follows: Included in leasehold land and buildings: March 31, 2022 2023 Cost $ 10,623 $ 4,273 Less: accumulated depreciation and amortization (3,804 ) (1,602 ) Net book value $ 6,819 $ 2,671 During the years ended March 31, 2021, 2022 and 2023, the Company had no impairment on its property, plant and equipment. Depreciation of property, plant and equipment were $1,755, $1,736 and $1,709 during the years ended March 31, 2021, 2022 and 2023, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Other Accrued Liabilities | 7. Other Accrued Liabilities Other accrued liabilities consist of the following: March 31, 2022 2023 Accrued expenses $ 1,645 $ 587 Others 1,305 1,402 $ 2,950 $ 1,989 |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Net income before taxes of, $8,706, $8,067 and $2,314 were solely attributed by non-U.S. operations for the years ended March 31, 2021, 2022 and 2023, respectively. Under current BVI law, the Company’s income is not subject to taxation in the British Virgin Islands. Subsidiaries operating in the PRC are subject to income taxes as described below, and the subsidiaries operating in Macao are exempted from income taxes before January 1, 2021. Under the current Samoa Law, subsidiary incorporated in Samoa is not subject to profit tax as it has no business operations in Samoa. Effective from January 1, 2021, profit in excess of Macau Patacas (“MOP$”) MOP$600 derived from subsidiaries incorporated in Macau are subject to Macau Complementary Tax of 12%. In accordance with the PRC Income Tax Law, the standard income tax for all subsidiaries operating in the PRC is 25%. The provision for income taxes consists of the following: Year ended March 31, 2021 2022 2023 Current tax - PRC $ 295 $ 249 $ 164 - Macau 26 153 246 Deferred tax 154 (567 ) (155 ) $ 475 $ (165 ) $ 255 Reconciliation between the provision for income taxes computed by applying the statutory tax rate in the PRC to income before income taxes and the actual provision for income taxes is as follows: Year ended March 31, 2021 2022 2023 Provision for income taxes at statutory tax rate in the PRC $ 2,177 $ 2,017 $ 578 Tax rate differential on entities not subject to PRC income tax (740 ) (602 ) 520 Effect of income for which no income tax is chargeable (934 ) (1,670 ) (1,044 ) Effect of expense for which no income tax is deductible 75 188 112 Net change in valuation allowances (103 ) (62 ) 90 Over provision of income tax in previous years - (36 ) (1 ) Effective tax $ 475 $ (165 ) $ 255 The net deferred income tax consists of the following: March 31, 2022 2023 Deferred income tax assets $ 259 $ 262 Deferred income tax liabilities (659 ) (484 ) Net deferred income tax liabilities $ (400 ) $ (222 ) The components of net deferred income tax are as follows: March 31, 2022 2023 Deferred income tax assets (liabilities): Net operating loss carry forwards $ 43 $ 48 Provision of employee benefits 1,150 1,267 Depreciation and amortization (1,172 ) (1,280 ) Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose (382 ) (240 ) Others 4 116 Less: Valuation allowances (43 ) (133 ) Net deferred income tax liabilities $ (400 ) $ (222 ) The Company operates through the PRC entities and the valuation allowance is considered on each individual basis. The Company’s assessment is that it is not more likely than not that these deferred tax assets will be realized. The net operating loss attributable to those PRC entities can only be carried forward for a maximum period of five years. Tax losses of non-PRC entities can be carried forward indefinitely. Under the PRC Income Tax Law and the implementation rules, profits of the PRC entities earned on or after January 1, 2008 and distributed by the PRC entities to the Company are subject to a withholding tax at a rate of 10%, unless the Company will be deemed as a resident enterprise for tax purposes. Since the Company intends to reinvest the earnings of the PRC entities in operations in the PRC, the PRC entities do not intend to declare dividends to their immediate non-PRC established holding companies in the foreseeable future. Accordingly, no deferred taxation on undistributed earnings of the PRC entities has been recognized as of March 31, 2023. The Company has adopted the provisions of ASC 740 on April 1, 2007. The evaluation of a tax position in accordance with ASC 740 begins with a determination as to whether it is more-likely-than-not that a tax position will be sustained upon examination based on the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is then measured at the largest amount of benefit that if greater than 50 percent likely of being realized upon ultimate settlement for recognition in the financial statements. The Company classifies interest and/or penalties related to unrecognized tax benefits as a component of income tax provisions; however, as of March 31, 2022 and 2023, there is no interest and penalties related to uncertain tax positions. A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows: Year ended March 31, 2021 2022 2023 Balance at the beginning of the year $ 735 $ 886 $ 1,232 Increase (decrease) related to current year tax positions 151 346 (426 ) Balance at end of the year $ 886 $ 1,232 $ 806 At March 31, 2022 and 2023, there are $1,232 and $806 of unrecognized tax benefits that if recognized, would affect the annual effective tax rate. For the year ended March 31, 2021, 2022 and 2023, the Company did not recognize any interest and penalties related to unrecognized tax benefits. The Company is currently unable to provide an estimate of a range of the total amount of unrecognized tax benefits that is reasonably possible to change significantly within the next twelve months. According to the PRC Tax Administration and Collection Law, the statute of limitations is three years if the underpayment of taxes is due to computational errors made by the taxpayer or its withholding agent. The statute of limitations extends to five years under special circumstances, which are not clearly defined. In the case of a related party transaction, the statute of limitations is ten years. There is no statute of limitations in the case of tax evasion. In accordance with Guo Shui Fa [2009] No.2, the PRC tax authorities have the right to deem the Company for a tax amount based on the transfer pricing contemporaneous documentations (the “Contemporaneous Documentations”) or a basis that they considered reasonable. The amount of income taxes payable at March 31, 2022 and 2023 includes the deemed profit tax estimated by the management based on the Contemporaneous Documentations. |
Lease
Lease | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lease | 9. Lease Operating leases as lessor We have non-cancellable agreements to lease our factory buildings to tenants under operating lease. The lease terms are between 1 month to 36 months. The leases do not contain contingent payments. At March 31, 2023, the minimum future rental income to be received is as follows: Year ending March 31, 2024 $ 584 Year ending March 31, 2025 190 Total minimum future rental income $ 774 The following table represents lease income recognized in the consolidated statements of comprehensive income: March 31, 2022 2023 Operating lease income $ 2,418 $ 1,450 Other information: Operating cash flows from operating leases as lessor $ 2,539 $ 1,698 Operating leases as lessee The Company leases premises and warehouses under various operating leases, certain of which contain escalation clauses. As of March 31, 2022 and 2023, the Company had no material operating lease arrangement with lease terms over 1 year. The following table represents lease costs recognized in the Company’s consolidated statements of comprehensive income for the year ended March 31, 2021, 2022 and 2023. Lease costs are included in cost of sales, selling, general and administrative expense on the Company’s consolidated statements of comprehensive income. Year ended March 31, 2021 2022 2023 Operating lease costs $ 71 $ 111 $ 76 Total leases costs $ 71 $ 111 $ 76 Year ended March 31, 2021 2022 2023 Supplemental cash flow information for our leases was as follows Operating cash paid for operating lease $ 71 $ 111 $ 76 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies The Company leases premises and warehouses under non-cancelable operating lease agreements. See note 9 for future minimum lease payments under non-cancelable operating lease agreements with initial terms of one year or more. At March 31, 2023, the Company had capital commitments for purchase of plant and machinery, and leasehold improvement totaling $129, which are expected to be disbursed during the year ending March 31, 2024. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefits | 11. Employee Benefits The Company contributes to a state pension plan run by the Chinese government in respect of its employees in the PRC. The expense of $165, $784 and $754 included in the consolidated statements of comprehensive income related to this plan, which is based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government, was provided for the years ended March 31, 2021, 2022 and 2023, respectively. |
Stock Option Plan
Stock Option Plan | 12 Months Ended |
Mar. 31, 2023 | |
Stock Option Plan [Abstract] | |
Stock Option Plan | 12. Stock Option Plan On March 15, 1995, the Company adopted the 1995 Stock Option Plan that permits the Company to grant options to officers, directors, employees and others to purchase up to 1,012,500 shares of Common Stock. On September 29, 1997, the Company approved an increase of 549,000 shares making a total of 1,561,500 shares of common stock available under the stock option plan. On January 7, 2002, the Company adopted the 2001 Stock Option Plan to purchase an additional 1,125,000 shares of Common Stock. On September 30, 2003, the Company adopted the 2003 Stock Option Plan to purchase an additional 900,000 shares of Common Stock. On September 19, 2005, the Company’s shareholders approved an increase of 500,000 shares making a total of 1,400,000 shares of common stock available under the 2003 Stock Option Plan. On August 17, 2007, the Company’s Board of Directors, subject to shareholders’ approval, approved an increase of 400,000 shares making a total of 1,800,000 shares of common stock available under the 2003 Stock Option Plan. The Company’s shareholders approved this amendment at the Company’s Annual Shareholders’ Meeting held on October 9, 2007. On August 13, 2010, the Company’s Board of Directors, subject to shareholders’ approval, approved an increase of 800,000 shares making a total of 2,600,000 shares of common stock available under the 2003 Stock Option Plan. The Company’s shareholders approved this amendment at the Company’s Annual Shareholders’ Meeting held on September 16, 2010. On August 7, 2013, the Company’s Board of Directors, subject to shareholder approval, approved amendments to the 2003 Stock Option Plan to increase by 900,000 shares the number of shares that can be optioned and sold under the 2003 Stock Option Plan, bringing to a total of 3,500,000 shares the number of common shares that can be optioned and sold under the 2003 Stock Option Plan. The Company’s shareholders approved this amendment at the Company’s Annual Shareholders’ Meeting held on September 11, 2013. As of March 31, 2023, options to purchase an aggregate of 5,669,000 common shares had been granted under the stock option plans. Options granted under the stock option plans vest immediately and are exercisable for a period of up to 10 years commencing on the date of grant, at a price equal to at least the fair market value of the Common Stock at the date of grant, and may contain such other terms as the Board of Directors or a committee appointed to administer the plan may determine. A summary of the option activity (with weighted average prices per option) is as follows: Year ended March 31, 2021 2022 2023 Number of stock options Weighted Average Exercise price Weighted Average Grant Date Fair Value Number of stock options Weighted Average Exercise price Weighted Average Grant Date Fair Value Number of stock options Weighted Average Exercise price Weighted Average Grant Date Fair Value Outstanding at beginning of the year 470,000 $ 2.1 $ 0.51 470,000 $ 2.1 $ 0.51 400,000 $ 2.09 $ 0.50 Exercised during the year - $ - $ - (20,000 ) $ 2.14 $ 0.549 - $ - $ - Cancelled during the year - $ - $ - (50,000 ) $ 2.14 $ 0.549 - $ - $ - Outstanding and exercisable at the end of the year 470,000 $ 2.1 $ 0.51 400,000 $ 2.09 $ 0.50 400,000 $ 2.09 $ 0.50 Range of exercise price per share $ 2.09 to $2.14 $ 2.09 $ 2.09 During the years ended March 31, 2021, 2022 and 2023, the Company recognized employee stock-based compensation expense of $ nil nil nil As of March 31, 2022 and 2023, the Company had outstanding stock options to acquire an aggregate of 400,000 shares of common stock with an intrinsic value of $628 and $224, respectively. Of those outstanding options, 400,000 shares had vested as of March 31, 2022 and 2023, representing an intrinsic value of $628 and $224, respectively. |
Other (expenses) income, net
Other (expenses) income, net | 12 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other (expenses) income, net | 13. Other (expenses) income, net Other income, net consist of the following: Year ended March 31, 2021 2022 2023 Gain (loss) on disposal of property, plant and equipment, net $ 22 $ (24 ) $ 18 Foreign exchange gain (loss), net 567 (352 ) (256 ) (Provision for) reversal of credit losses, net (397 ) 148 229 Others 213 302 1,023 Other income, net $ 405 $ 74 $ 1,014 |
Non-operating (expenses) income
Non-operating (expenses) income, net | 12 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Non-operating (expenses) income, net | 14. Non-operating (expenses) income, net Non-operating income (expenses), net consist of the following: Year ended March 31, 2021 2022 2023 Dividend income from marketable securities $ 802 $ 974 $ 1,093 Interest income from bank deposits 235 245 282 Unrealized gain (loss) from marketable securities 2,010 872 (3,973 ) Realized gain from sales of marketable securities 333 1,073 581 Rental income, net of depreciation charges 2,026 2,209 1,328 Others 39 (65 ) 116 Non-operating (expenses) income, net $ 5,445 $ 5,308 $ (573 ) |
Operating Risk
Operating Risk | 12 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Operating Risk | 15. Operating Risk Concentrations of Credit Risk and Major Customers Percentage of net sales Year ended March 31, 2021 2022 2023 Customer B 19.3 % 20.1 % 21.4 % Customer C 10.0 % 11.6 % * % Customer D 11.2 % * % * % Customer E * % * % 19.6 % Customer F 11.2 % * % * % * Less than 10% Sales to the above customers relate to both injection-molded plastic parts and electronic products. Debtors accounting for 10% or more of total accounts receivable at March 31, 2022 and 2023, respectively, are as follows: Percentage of accounts March 31, 2022 2023 Customer B 10.5 % * % Customer E 17.6 % 24.0 % Customer G * % 15.4 % * Less than 10% There were $ nil nil Concentrations of Suppliers Country risk Investment price risk |
Segment Information
Segment Information | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 16. Segment Information The Company has two reportable segments: plastic injection molding and electronic products assembling. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Most of the businesses were acquired as a unit, and the management at the time of the acquisition was retained. The Company used to include the corporate expenses, which mainly comprised of directors’ remuneration, legal and professional expenses and corporate insurance expenses, in the segment of plastic injection. Commencing from this year, the corporate expenses are separately disclosed in the segment information for a more precise presentation of the financial performance of each segment. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Contributions of the major activities, profitability information and asset information of the Company’s reportable segments for the years ended March 31, 2021, 2022 and 2023 are as follows: Year ended March 31, 2021 2022 2023 Net sales Intersegment sales Income (loss) before income tax Net sales Intersegment sales Income (loss) before income tax Net sales Intersegment sales Income (loss) before income tax Segment: Injection molded plastic parts $ 20,325 $ (461 ) $ 6,025 $ 23,586 $ (241 ) $ 4,229 $ 15,838 $ (221 ) $ (2,421 ) Electronic products 45,022 - 3,992 62,635 - 5,233 61,720 - 6,147 Segment total $ 65,347 $ (461 ) $ 10,017 $ 86,221 $ (241 ) $ 9,462 $ 77,558 $ (221 ) $ 3,726 Reconciliation to consolidated totals: Sales eliminations (461 ) 461 - (241 ) 241 - (221 ) 221 - Corporate expenses $ (1,311 ) $ (1,395 ) $ (1,412 ) Consolidated totals: Net sales $ 64,886 $ - $ 85,980 $ - $ 77,337 $ - Income before income taxes $ 8,706 $ 8,067 $ 2,314 Year ended March 31, 2021 2022 2023 Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Segment: Injection molded plastic parts $ 213 $ - $ 221 $ - $ 255 $ - Electronic products 22 - 24 - 27 - Consolidated total $ 235 $ - $ 245 $ - $ 282 $ - Year ended March 31, 2021 2022 2023 Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Segment: Injection molded plastic parts $ 73,209 $ 269 $ 1,540 $ 74,373 $ 783 $ 1,402 $ 68,025 $ 166 $ 1,279 Electronic products 34,651 282 215 41,038 721 334 42,354 626 430 Consolidated Totals $ 107,860 $ 551 $ 1,755 $ 115,411 $ 1,504 $ 1,736 $ 110,379 $ 792 $ 1,709 The breakdown of sales by destination is analyzed as follows: Year ended March 31, 2021 2022 2023 Net sales United States of America $ 7,861 $ 10,460 $ 12,169 PRC 24,905 34,448 27,740 United Kingdom 3,259 6,736 9,108 Hong Kong 8,138 11,593 6,470 Europe 9,564 13,421 13,290 Canada 4,680 5,503 4,699 Others 6,479 3,819 3,861 Total net sales $ 64,886 $ 85,980 $ 77,337 The location of the Company’s long-lived assets is as follows: March 31, 2022 2023 Hong Kong and Macao $ 99 $ 1 PRC 26,918 26,050 Total long-lived assets $ 27,017 $ 26,051 |
Condensed Financial Information
Condensed Financial Information of Deswell Industries, Inc. | 12 Months Ended |
Mar. 31, 2023 | |
Condensed Financial Information of Deswell Industries, Inc. [Abstract] | |
Condensed Financial Information of Deswell Industries, Inc. | 17. Condensed Financial Information of Deswell Industries, Inc. The condensed financial statements of Deswell Industries, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, Deswell Industries, Inc.’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to Deswell Industries, Inc. in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling $58,900 (equivalent to RMB376 million) and $54,722 (equivalent to RMB376 million) as of March 31, 2022 and 2023, respectively. Balance sheets March 31, 2022 2023 Assets Current assets: Cash and cash equivalents $ 227 $ 918 Prepaid expenses and other current assets 45 45 Amounts due from subsidiaries 12,533 8,228 Total current assets 12,805 9,191 Investments in subsidiaries 79,666 82,154 Total assets $ 92,471 $ 91,345 Liabilities and shareholders’ equity Current liabilities: Accrued payroll and employee benefits $ 1,573 $ 1,573 Other accrued liabilities 120 123 Total current liabilities 1,693 1,696 Total shareholders’ equity 90,778 89,649 Total liabilities and shareholders’ equity $ 92,471 $ 91,345 Statements of comprehensive income Year ended March 31, 2021 2022 2023 Equity in earnings of subsidiaries $ 9,442 $ 8,661 $ 2,488 Operating expenses 1,211 429 429 Income before income taxes 8,231 8,232 2,059 Income taxes - - - Net income 8,231 8,232 2,059 Share of other comprehensive income (loss) of subsidiaries - - - Total comprehensive income $ 8,231 $ 8,232 $ 2,059 Statements of cash flows Year ended March 31, 2021 2022 2023 Cash flows from operating activities Net income $ 8,231 $ 8,232 $ 2,059 Adjustments to reconcile net income to net cash Equity in earnings of subsidiaries (9,442 ) (8,661 ) (2,488 ) Changes in operating assets and liabilities: Prepaid expenses and other current assets (3 ) - - Amounts due from subsidiaries 7,774 (782 ) 4,305 Other accrued liabilities (24 ) 7 3 Net cash provided by (used in) operating activities 6,536 (1,204 ) 3,879 Cash flows from financing activities Dividends paid (2,864 ) (3,186 ) (3,188 ) Proceeds from exercise of stock options - 43 - Net cash used in financing activities (2,864 ) (3,143 ) (3,188 ) Net increase (decrease) in cash and cash equivalents 3,672 (4,347 ) 691 Cash and cash equivalents, beginning of year 902 4,574 227 Cash and cash equivalents, end of year $ 4,574 $ 227 $ 918 a) Basis of presentation In Deswell Industries, Inc.-only financial statements, Deswell Industries, Inc.’s investments in subsidiaries are stated at cost plus its equity interest in undistributed earnings of subsidiaries since inception. Accordingly, such financial statements should be read in conjunction with the Company’s consolidated financial statements. Deswell Industries, Inc. records its investments in its subsidiaries under the equity method of accounting as prescribed in ASC 323 “Investment-Equity Method and Joint Ventures”. Such investment is presented on the balance sheets as “Investments in subsidiaries” and share of the subsidiaries’ profit or loss as “Equity in earnings (loss) of subsidiaries”, on the statements of comprehensive income. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. b) Related party transactions For the year ended March 31, 2021, related party transactions were mainly composed of $90 paid to Jetcrown Industrial (Macao Commercial Offshore) Limited as service fee. No service fee was paid to Jetcrown Industrial (Macao Commercial Offshore) Limited for the year ended March 31, 2022 and 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Principles of consolidation | Principles of consolidation |
Cash and cash equivalents | Cash and cash equivalents |
Marketable securities | Marketable securities |
Inventories | Inventories |
Property, plant and equipment | Property, plant and equipment Leasehold land and buildings 30 - 50 years Plant and machinery 5 - 15 years Furniture, fixtures and equipment 4 - 5 years Motor vehicles 3 - 5 years Leasehold improvements Shorter of lease term or 2 - 5years |
Leases | Leases When the Company is the lessor, minimum contractual rental from leases is recognized on a straight-line basis over the non-cancelable term of the lease. With respect to a particular lease, actual amounts billed in accordance with the lease during any given period may be higher or lower than the amount of rental revenue recognized for the period. Straight-line rental revenue commences when the customer assumes control of the leased premises. Accrued straight-line rents receivable represents the amount by which straight-line rental revenue exceeds rents currently billed in accordance with lease agreements. If later, the billing amount exceeds the straight-line rental revenue, the variance will be credited to accrued straight-line rents receivable. Contingent rental revenue is accrued when the contingency is removed. |
Impairment of long-lived assets | Impairment of long-lived assets |
Revenue recognition | Revenue recognition Revenue from contracts with customers is recognized using the following five steps pursuant ASC Topic 606, Revenue from Contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the Company satisfies a performance obligation. Products sales The Company recognizes revenue upon transfer of control of its products to the customer, which typically occurs upon delivery. The Company’s main performance obligation to its customers is the delivery of products in accordance with purchase orders. Each purchase order defines the transaction price for the products purchased under the arrangement. Acceptance of delivery of the products is evidenced by goods receipt notes signed by the customer. The Company has no remaining obligations after the customer’s acceptance of the products. Under the terms of the contracts or purchase orders between the Company and the customer, the control of the products is transferred to the customer upon the signing of the goods receipt notes and the customer has no rights to return the products (other than for defective products). Some customers examine and pick up the products at our plant while some local customers instruct us to deliver the products to their plants nearby. Some overseas customers instruct us to deliver the products to the named port of shipment. Delivery of the products occurs at that point of time when the control of the products is transferred to the customer. The selling price, which is specified in the purchase orders, is fixed. Under the terms of the purchase orders, upon the sale of the products to the customer and the signing of the good receipts notes, the Company has the legally enforceable right to receive full payment of the sales price. The customer’s obligation to pay the Company is not dependent on the customer selling the products or collecting cash from their customers (or end customers). The customer is required to pay under normal sales terms. The Company’s normal payment terms range from 30 days to 90 days and its sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets or liabilities that are material to its consolidated financial statements. The Company permits the return of damaged or defective products and accounts for these actual returns as deduction from sales. Product returns to the Company were insignificant during past years. Incremental costs to fulfill the Company’s customer arrangements are expensed as incurred, as the amortization period is less than one year. The Company’s sales are net of value added tax (“VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. VAT and business tax and surcharges collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities. Outbound freight and Handling costs: The Company accounts for product outbound freight and handling costs as fulfillment activities and present the associated costs in selling expenses in the period in which it sells the product. Disaggregation of Revenues: The following table disaggregates product sales by business segment and by geography, which provides information as to the major source of revenue. See Note 16 for additional description of our reportable business segments. Year ended March 31, 2021 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,349 $ 6,512 $ 7,861 PRC 17,081 7,824 24,905 United Kingdom 15 3,244 3,259 Hong Kong 1,248 6,890 8,138 Europe 169 9,395 9,564 Canada - 4,680 4,680 Others 3 6,476 6,479 Total net sales $ 19,865 $ 45,021 $ 64,886 Year ended March 31, 2022 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,014 $ 9,446 $ 10,460 PRC 20,430 14,018 34,448 United Kingdom 26 6,710 6,736 Hong Kong 1,666 9,927 11,593 Europe 209 13,212 13,421 Canada - 5,503 5,503 Others - 3,819 3,819 Total net sales $ 23,345 $ 62,635 $ 85,980 Year ended March 31, 2023 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,006 $ 11,163 $ 12,169 PRC 13,010 14,730 27,740 United Kingdom 2 9,106 9,108 Hong Kong 1,468 5,002 6,470 Europe 131 13,159 13,290 Canada - 4,699 4,699 Others - 3,861 3,861 Total net sales $ 15,617 $ 61,720 $ 77,337 |
Allowance for credit losses | Allowance for credit losses The Company estimated the expected credit losses for accounts receivable with similar risk characteristics on a pool basis. For each pool, the Company considers the historical credit loss experience, current economic conditions, supportable forecasts of future economic conditions, and any recoveries in assessing the lifetime expected credit losses. Other key factors that influence the expected credit loss analysis include payment terms offered in the normal course of business to customers and industry-specific factors that could impact the Company’s receivables. Additionally, macroeconomic factors are also considered. As at April 1, 2020, the Company assessed and concluded that the adoption did not have a material impact on the opening balance of retained earnings in the consolidated financial statements. Accounts receivable, net, as of March 31, 2022 and 2023 consisted of the following: March 31, 2022 2023 Accounts receivable $ 18,463 $ 15,743 Less: Allowance for credit losses (268 ) (39 ) Accounts receivable, net $ 18,195 $ 15,704 The movement of allowance for credit losses for the years ended March 31, 2021, 2022 and 2023 was as follows: Year ended March 31, Allowance for credit losses 2021 2022 2023 Balance at beginning of the year $ 954 $ 1,351 $ 268 Provision for (reversal of) credit losses, net 397 (148 ) (229 ) Written off - (935 ) - $ 1,351 $ 268 $ 39 The provision and reversal of credit losses for the years were charged to other income (expenses), net in consolidated statements of comprehensive income. |
Shipping and handling cost | Shipping and handling cost |
Income taxes | Income taxes The Company adopted the provisions of ASC No. 740 “Income Taxes” (“ASC 740”), which clarifies the accounting for uncertainty in income taxes recognized by prescribing a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides accounting guidance on de-recognition, classification, interest and penalties, disclosure and transition. |
Foreign currency translation | Foreign currency translation All transactions in currencies other than the functional currency during the year are translated at the exchange rates prevailing on the transaction dates. Monetary items existing at the balance sheet date denominated in currencies other than the functional currencies are translated at period end rates. Gains and losses resulting from the translation of foreign currency transactions and balances are included in the consolidated statement of comprehensive income. The exchange rates between the Hong Kong dollars and the U.S. dollar were approximately 7.7904, 7.7904 and 7.7904 as of March 31, 2021, 2022 and 2023, respectively. The exchange rates between the Chinese Renminbi and the U.S. dollar were approximately 6.4819, 6.3924 and 6.8806 as of March 31, 2021, 2022 and 2023, respectively. Aggregate net foreign currency transaction (loss) gain included in other income (expenses) were, $567, $(352) and $(256) for the years ended March 31, 2021, 2022 and 2023, respectively. |
Post-retirement and post-employment benefits | Post-retirement and post-employment benefits |
Stock-based compensation | Stock-based compensation There were no stock options granted during the year ended March 31, 2021, 2022 and 2023. |
Net income per share | Net income per share Basic net income per share and diluted net income per share calculated in accordance with ASC No. 260, “Earnings Per Share”, are reconciled as follows (shares in thousands): Year ended March 31, 2021 2022 2023 Net income attributable to Deswell Industries, Inc. $ 8,231 $ 8,232 $ 2,059 Basic weighted average common shares outstanding 15,915 15,929 15,935 Basic net income per share $ 0.52 $ 0.52 $ 0.13 Year ended March 31, 2021 2022 2023 Basic weighted average common shares outstanding 15,915 15,929 15,935 Effect of dilutive securities - Options 132 206 137 Diluted weighted average common and potential common shares outstanding 16,047 16,135 16,072 Diluted net income per share $ 0.51 $ 0.51 $ 0.13 |
Use of estimates | Use of estimates |
Fair value of financial instruments | Fair value of financial instruments |
Fair value measurements | Fair value measurements It establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques based on significant unobservable inputs, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. |
Non-recurring fair value measurements | Non-recurring fair value measurements Fair value of long-lived assets, including real estate, are determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market. Significant increases or decreases in actual cash flows may result in valuation changes. For real estate, fair values are based on discounted cash flow estimates which reflect current and projected lease profiles and available industry information about capitalization rates and expected trends in rents and occupancy and are corroborated by external appraisals. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In July 2021, the FASB issued ASU 2021-05, Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance (ASU 2021-10), which improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity’s financial statements. Effective April 1, 2022, the Company adopted ASU 2021-10, which did not have a material impact on the Company’s consolidated financial statements. |
Recent Accounting Pronouncement Not Yet Adopted | Recent Accounting Pronouncement Not Yet Adopted In March 2022, the FASB issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Summary of Significant Accounting Policies | |
Schedule of estimated useful lives of property, plant and equipment | Depreciation and amortization are provided on the straight line method based on the estimated useful lives of the assets as follows: Leasehold land and buildings 30 - 50 years Plant and machinery 5 - 15 years Furniture, fixtures and equipment 4 - 5 years Motor vehicles 3 - 5 years Leasehold improvements Shorter of lease term or 2 - 5years |
Schedule of disaggregates product sales by business segment by geography | The following table disaggregates product sales by business segment and by geography, which provides information as to the major source of revenue. See Note 16 for additional description of our reportable business segments. Year ended March 31, 2021 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,349 $ 6,512 $ 7,861 PRC 17,081 7,824 24,905 United Kingdom 15 3,244 3,259 Hong Kong 1,248 6,890 8,138 Europe 169 9,395 9,564 Canada - 4,680 4,680 Others 3 6,476 6,479 Total net sales $ 19,865 $ 45,021 $ 64,886 Year ended March 31, 2022 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,014 $ 9,446 $ 10,460 PRC 20,430 14,018 34,448 United Kingdom 26 6,710 6,736 Hong Kong 1,666 9,927 11,593 Europe 209 13,212 13,421 Canada - 5,503 5,503 Others - 3,819 3,819 Total net sales $ 23,345 $ 62,635 $ 85,980 Year ended March 31, 2023 Injection molded Plastic parts Electronic Products Total Net sales United States of America $ 1,006 $ 11,163 $ 12,169 PRC 13,010 14,730 27,740 United Kingdom 2 9,106 9,108 Hong Kong 1,468 5,002 6,470 Europe 131 13,159 13,290 Canada - 4,699 4,699 Others - 3,861 3,861 Total net sales $ 15,617 $ 61,720 $ 77,337 |
Schedule of accounts receivable, net | Accounts receivable, net, as of March 31, 2022 and 2023 consisted of the following: March 31, 2022 2023 Accounts receivable $ 18,463 $ 15,743 Less: Allowance for credit losses (268 ) (39 ) Accounts receivable, net $ 18,195 $ 15,704 |
Schedule of allowance for credit losses | The movement of allowance for credit losses for the years ended March 31, 2021, 2022 and 2023 was as follows: Year ended March 31, Allowance for credit losses 2021 2022 2023 Balance at beginning of the year $ 954 $ 1,351 $ 268 Provision for (reversal of) credit losses, net 397 (148 ) (229 ) Written off - (935 ) - $ 1,351 $ 268 $ 39 |
Schedule of basic net income per share and diluted net income per share | Basic net income per share and diluted net income per share calculated in accordance with ASC No. 260, “Earnings Per Share”, are reconciled as follows (shares in thousands): Year ended March 31, 2021 2022 2023 Net income attributable to Deswell Industries, Inc. $ 8,231 $ 8,232 $ 2,059 Basic weighted average common shares outstanding 15,915 15,929 15,935 Basic net income per share $ 0.52 $ 0.52 $ 0.13 Year ended March 31, 2021 2022 2023 Basic weighted average common shares outstanding 15,915 15,929 15,935 Effect of dilutive securities - Options 132 206 137 Diluted weighted average common and potential common shares outstanding 16,047 16,135 16,072 Diluted net income per share $ 0.51 $ 0.51 $ 0.13 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Marketable Securities [Abstract] | |
Schedule of marketable securities | The Company acquired equity securities listed in Hong Kong Securities Exchange. March 31, 2022 2023 Cost $ 24,096 $ 24,292 Market value $ 24,499 $ 20,722 |
Inventories, net (Tables)
Inventories, net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Schedule of inventories, net of allowances | March 31, 2022 2023 Raw materials $ 16,970 $ 12,987 Work-in-progress 3,904 2,723 Finished goods 2,945 1,615 $ 23,819 $ 17,325 |
Schedule of obsolescence allowance for inventory | Year ended March 31, 2021 2022 2023 Balance at beginning of the year $ 4,316 $ 4,307 $ 4,282 (Written off) additional charges, net (9 ) (25 ) 116 Balance at the end of the year $ 4,307 $ 4,282 $ 4,398 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consist of the following: March 31, 2022 2023 Value added tax recoverable $ 27 $ - Rental and utility deposit 25 23 Advance to suppliers 260 129 Prepayment 649 429 Dividend receivable 115 164 Others 850 404 $ 1,926 $ 1,149 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment, net [Abstract] | |
Schedule of property, plant and equipment, net consist | Property, plant and equipment, net consist of the following: March 31, 2022 2023 At cost: Leasehold land and buildings $ 32,233 $ 32,233 Plant and machinery 37,313 37,293 Furniture, fixtures and equipment 10,748 10,734 Motor vehicles 1,583 1,431 Leasehold improvements 4,201 4,432 Impairment (2,781 ) (2,769 ) 83,297 83,354 Less: accumulated depreciation and amortization (56,280 ) (57,303 ) Net book value $ 27,017 $ 26,051 |
Schedule of leasehold land and buildings | Cost of leasehold land and buildings consist of the following: March 31, 2022 2023 Land use right of state-owned land and buildings erected thereon (a) $ 28,077 $ 28,077 Long term leased land and buildings erected thereon (b) 4,156 4,156 $ 32,233 $ 32,233 (a) The land use rights of state-owned land and buildings erected thereon represent land and buildings located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building with terms of 50 years expiring in 2050. (b) Long term leased land and buildings erected thereon represent land and buildings on collectively-owned land located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building for a term of 50 years to 2053. Dongguan Chang An Xiaobian District Co-operation, the lessor, is the entity to whom the collectively-owned land has been granted. According to existing PRC laws and regulations, collectively-owned land is not freely transferable unless certain application and approval procedures are fulfilled by the Dongguan Chang An Xiaobian District Co-operation to change the legal form of the land from collectively-owned to state-owned. As of March 31, 2023, the Company is not aware of any steps being taken by the Dongguan Chang An Xiaobian District Co-operation for such application. Included in leasehold land and buildings: March 31, 2022 2023 Cost $ 10,623 $ 4,273 Less: accumulated depreciation and amortization (3,804 ) (1,602 ) Net book value $ 6,819 $ 2,671 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of other accrued liabilities | March 31, 2022 2023 Accrued expenses $ 1,645 $ 587 Others 1,305 1,402 $ 2,950 $ 1,989 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | Year ended March 31, 2021 2022 2023 Current tax - PRC $ 295 $ 249 $ 164 - Macau 26 153 246 Deferred tax 154 (567 ) (155 ) $ 475 $ (165 ) $ 255 |
Schedule of Income Tax Rate Reconciliation | Year ended March 31, 2021 2022 2023 Provision for income taxes at statutory tax rate in the PRC $ 2,177 $ 2,017 $ 578 Tax rate differential on entities not subject to PRC income tax (740 ) (602 ) 520 Effect of income for which no income tax is chargeable (934 ) (1,670 ) (1,044 ) Effect of expense for which no income tax is deductible 75 188 112 Net change in valuation allowances (103 ) (62 ) 90 Over provision of income tax in previous years - (36 ) (1 ) Effective tax $ 475 $ (165 ) $ 255 |
Schedule of Deferred Income Tax Assets and Liabilties | March 31, 2022 2023 Deferred income tax assets $ 259 $ 262 Deferred income tax liabilities (659 ) (484 ) Net deferred income tax liabilities $ (400 ) $ (222 ) |
Schedule of Components of Deferred Income Tax | March 31, 2022 2023 Deferred income tax assets (liabilities): Net operating loss carry forwards $ 43 $ 48 Provision of employee benefits 1,150 1,267 Depreciation and amortization (1,172 ) (1,280 ) Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose (382 ) (240 ) Others 4 116 Less: Valuation allowances (43 ) (133 ) Net deferred income tax liabilities $ (400 ) $ (222 ) |
Schedule of Unrecognized Tax Benefits | Year ended March 31, 2021 2022 2023 Balance at the beginning of the year $ 735 $ 886 $ 1,232 Increase (decrease) related to current year tax positions 151 346 (426 ) Balance at end of the year $ 886 $ 1,232 $ 806 |
Lease (Tables)
Lease (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Future Rental Income | Year ending March 31, 2024 $ 584 Year ending March 31, 2025 190 Total minimum future rental income $ 774 |
Schedule of Operating Lease Income | March 31, 2022 2023 Operating lease income $ 2,418 $ 1,450 Other information: Operating cash flows from operating leases as lessor $ 2,539 $ 1,698 |
Schedule of Operating Lease Cost | Year ended March 31, 2021 2022 2023 Operating lease costs $ 71 $ 111 $ 76 Total leases costs $ 71 $ 111 $ 76 |
Schedule of Supplemental Cash Flow Information Lease | Year ended March 31, 2021 2022 2023 Supplemental cash flow information for our leases was as follows Operating cash paid for operating lease $ 71 $ 111 $ 76 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Payment Activity | Year ended March 31, 2021 2022 2023 Number of stock options Weighted Average Exercise price Weighted Average Grant Date Fair Value Number of stock options Weighted Average Exercise price Weighted Average Grant Date Fair Value Number of stock options Weighted Average Exercise price Weighted Average Grant Date Fair Value Outstanding at beginning of the year 470,000 $ 2.1 $ 0.51 470,000 $ 2.1 $ 0.51 400,000 $ 2.09 $ 0.50 Exercised during the year - $ - $ - (20,000 ) $ 2.14 $ 0.549 - $ - $ - Cancelled during the year - $ - $ - (50,000 ) $ 2.14 $ 0.549 - $ - $ - Outstanding and exercisable at the end of the year 470,000 $ 2.1 $ 0.51 400,000 $ 2.09 $ 0.50 400,000 $ 2.09 $ 0.50 Range of exercise price per share $ 2.09 to $2.14 $ 2.09 $ 2.09 |
Other (expenses) income, net (T
Other (expenses) income, net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other (expenses) income, net | Year ended March 31, 2021 2022 2023 Gain (loss) on disposal of property, plant and equipment, net $ 22 $ (24 ) $ 18 Foreign exchange gain (loss), net 567 (352 ) (256 ) (Provision for) reversal of credit losses, net (397 ) 148 229 Others 213 302 1,023 Other income, net $ 405 $ 74 $ 1,014 |
Non-operating (expenses) inco_2
Non-operating (expenses) income, net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Non-operating (expenses) income, net | Year ended March 31, 2021 2022 2023 Dividend income from marketable securities $ 802 $ 974 $ 1,093 Interest income from bank deposits 235 245 282 Unrealized gain (loss) from marketable securities 2,010 872 (3,973 ) Realized gain from sales of marketable securities 333 1,073 581 Rental income, net of depreciation charges 2,026 2,209 1,328 Others 39 (65 ) 116 Non-operating (expenses) income, net $ 5,445 $ 5,308 $ (573 ) |
Operating Risk (Tables)
Operating Risk (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Sales Revenue, Net [Member] | |
Operating Risk (Tables) [Line Items] | |
Schedule of Operating Risks | Percentage of net sales Year ended March 31, 2021 2022 2023 Customer B 19.3 % 20.1 % 21.4 % Customer C 10.0 % 11.6 % * % Customer D 11.2 % * % * % Customer E * % * % 19.6 % Customer F 11.2 % * % * % * Less than 10% |
Accounts Receivable [Member] | |
Operating Risk (Tables) [Line Items] | |
Schedule of Operating Risks | Percentage of accounts March 31, 2022 2023 Customer B 10.5 % * % Customer E 17.6 % 24.0 % Customer G * % 15.4 % * Less than 10% |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Major Activities for Reportable Segments | Year ended March 31, 2021 2022 2023 Net sales Intersegment sales Income (loss) before income tax Net sales Intersegment sales Income (loss) before income tax Net sales Intersegment sales Income (loss) before income tax Segment: Injection molded plastic parts $ 20,325 $ (461 ) $ 6,025 $ 23,586 $ (241 ) $ 4,229 $ 15,838 $ (221 ) $ (2,421 ) Electronic products 45,022 - 3,992 62,635 - 5,233 61,720 - 6,147 Segment total $ 65,347 $ (461 ) $ 10,017 $ 86,221 $ (241 ) $ 9,462 $ 77,558 $ (221 ) $ 3,726 Reconciliation to consolidated totals: Sales eliminations (461 ) 461 - (241 ) 241 - (221 ) 221 - Corporate expenses $ (1,311 ) $ (1,395 ) $ (1,412 ) Consolidated totals: Net sales $ 64,886 $ - $ 85,980 $ - $ 77,337 $ - Income before income taxes $ 8,706 $ 8,067 $ 2,314 |
Schedule of Profitability Information for Reportable Segments | Year ended March 31, 2021 2022 2023 Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Interest income from bank deposits Interest expenses Segment: Injection molded plastic parts $ 213 $ - $ 221 $ - $ 255 $ - Electronic products 22 - 24 - 27 - Consolidated total $ 235 $ - $ 245 $ - $ 282 $ - |
Schedule of Asset Information for Reportable Segments | Year ended March 31, 2021 2022 2023 Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Identifiable assets Capital expenditure Depreciation and amortization Segment: Injection molded plastic parts $ 73,209 $ 269 $ 1,540 $ 74,373 $ 783 $ 1,402 $ 68,025 $ 166 $ 1,279 Electronic products 34,651 282 215 41,038 721 334 42,354 626 430 Consolidated Totals $ 107,860 $ 551 $ 1,755 $ 115,411 $ 1,504 $ 1,736 $ 110,379 $ 792 $ 1,709 |
Schedule of Net Sales by Geographical Area | Year ended March 31, 2021 2022 2023 Net sales United States of America $ 7,861 $ 10,460 $ 12,169 PRC 24,905 34,448 27,740 United Kingdom 3,259 6,736 9,108 Hong Kong 8,138 11,593 6,470 Europe 9,564 13,421 13,290 Canada 4,680 5,503 4,699 Others 6,479 3,819 3,861 Total net sales $ 64,886 $ 85,980 $ 77,337 |
Schedule of Segment Indentifiable Assets by Geographical Area | March 31, 2022 2023 Hong Kong and Macao $ 99 $ 1 PRC 26,918 26,050 Total long-lived assets $ 27,017 $ 26,051 |
Condensed Financial Informati_2
Condensed Financial Information of Deswell Industries, Inc. (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Condensed Financial Information of Deswell Industries, Inc. [Abstract] | |
Condensed Balance Sheet | March 31, 2022 2023 Assets Current assets: Cash and cash equivalents $ 227 $ 918 Prepaid expenses and other current assets 45 45 Amounts due from subsidiaries 12,533 8,228 Total current assets 12,805 9,191 Investments in subsidiaries 79,666 82,154 Total assets $ 92,471 $ 91,345 Liabilities and shareholders’ equity Current liabilities: Accrued payroll and employee benefits $ 1,573 $ 1,573 Other accrued liabilities 120 123 Total current liabilities 1,693 1,696 Total shareholders’ equity 90,778 89,649 Total liabilities and shareholders’ equity $ 92,471 $ 91,345 |
Condensed Income Statement | Year ended March 31, 2021 2022 2023 Equity in earnings of subsidiaries $ 9,442 $ 8,661 $ 2,488 Operating expenses 1,211 429 429 Income before income taxes 8,231 8,232 2,059 Income taxes - - - Net income 8,231 8,232 2,059 Share of other comprehensive income (loss) of subsidiaries - - - Total comprehensive income $ 8,231 $ 8,232 $ 2,059 |
Condensed Cash Flow Statement | Year ended March 31, 2021 2022 2023 Cash flows from operating activities Net income $ 8,231 $ 8,232 $ 2,059 Adjustments to reconcile net income to net cash Equity in earnings of subsidiaries (9,442 ) (8,661 ) (2,488 ) Changes in operating assets and liabilities: Prepaid expenses and other current assets (3 ) - - Amounts due from subsidiaries 7,774 (782 ) 4,305 Other accrued liabilities (24 ) 7 3 Net cash provided by (used in) operating activities 6,536 (1,204 ) 3,879 Cash flows from financing activities Dividends paid (2,864 ) (3,186 ) (3,188 ) Proceeds from exercise of stock options - 43 - Net cash used in financing activities (2,864 ) (3,143 ) (3,188 ) Net increase (decrease) in cash and cash equivalents 3,672 (4,347 ) 691 Cash and cash equivalents, beginning of year 902 4,574 227 Cash and cash equivalents, end of year $ 4,574 $ 227 $ 918 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2021 USD ($) | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Shipping and handling costs | $ 450 | $ 524 | $ 523 |
Aggregate net foreign currency transaction | $ (256) | $ (352) | $ 567 |
Hong Kong, Dollars | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Exchange rate | 7.7904 | 7.7904 | 7.7904 |
China, Yuan Renminbi | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Exchange rate | 6.8806 | 6.3924 | 6.4819 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | Mar. 31, 2023 |
Leasehold land and buildings [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 30 years |
Leasehold land and buildings [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 50 years |
Plant and machinery [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 5 years |
Plant and machinery [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 15 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 4 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 5 years |
Motor vehicles [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 3 years |
Motor vehicles [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 5 years |
Leasehold improvements [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 2 years |
Leasehold improvements [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of property, plant and equipment | |
Estimated useful Lives (years) | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | $ 77,337 | $ 85,980 | $ 64,886 |
United States of America [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 12,169 | 10,460 | 7,861 |
PRC [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 27,740 | 34,448 | 24,905 |
United Kingdom [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 9,108 | 6,736 | 3,259 |
Hong Kong [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 6,470 | 11,593 | 8,138 |
Europe [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 13,290 | 13,421 | 9,564 |
Canada [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 4,699 | 5,503 | 4,680 |
Others [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 3,861 | 3,819 | 6,479 |
Injection Molded Plastic Parts [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 15,617 | 23,345 | 19,865 |
Injection Molded Plastic Parts [Member] | United States of America [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 1,006 | 1,014 | 1,349 |
Injection Molded Plastic Parts [Member] | PRC [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 13,010 | 20,430 | 17,081 |
Injection Molded Plastic Parts [Member] | United Kingdom [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 2 | 26 | 15 |
Injection Molded Plastic Parts [Member] | Hong Kong [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 1,468 | 1,666 | 1,248 |
Injection Molded Plastic Parts [Member] | Europe [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 131 | 209 | 169 |
Injection Molded Plastic Parts [Member] | Canada [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | |||
Injection Molded Plastic Parts [Member] | Others [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 3 | ||
Electronic Products [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 61,720 | 62,635 | 45,021 |
Electronic Products [Member] | United States of America [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 11,163 | 9,446 | 6,512 |
Electronic Products [Member] | PRC [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 14,730 | 14,018 | 7,824 |
Electronic Products [Member] | United Kingdom [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 9,106 | 6,710 | 3,244 |
Electronic Products [Member] | Hong Kong [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 5,002 | 9,927 | 6,890 |
Electronic Products [Member] | Europe [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 13,159 | 13,212 | 9,395 |
Electronic Products [Member] | Canada [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | 4,699 | 5,503 | 4,680 |
Electronic Products [Member] | Others [Member] | |||
Summary of Significant Accounting Policies (Details) - Schedule of disaggregates product sales by business segment by geography [Line Items] | |||
Total net sales | $ 3,861 | $ 3,819 | $ 6,476 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of accounts receivable, net - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Accounts Receivable, Net [Abstract] | ||
Accounts receivable | $ 15,743 | $ 18,463 |
Less: Allowance for credit losses | (39) | (268) |
Accounts receivable, net | $ 15,704 | $ 18,195 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Details) - Schedule of allowance for credit losses - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Allowance for Credit Losses [Abstract] | |||
Balance at beginning of the year | $ 268 | $ 1,351 | $ 954 |
Provision for (reversal of) credit losses, net | (229) | (148) | 397 |
Written off | (935) | ||
Allowance for credit losses | $ 39 | $ 268 | $ 1,351 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies (Details) - Schedule of basic net income per share and diluted net income per share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Basic Net Income Per Share and Diluted Net Income Per Share [Abstract] | |||
Net income attributable to Deswell Industries, Inc. (in Dollars) | $ 2,059 | $ 8,232 | $ 8,231 |
Basic weighted average common shares outstanding | 15,935,000 | 15,929,000 | 15,915,000 |
Effect of dilutive securities - Options | 137,000 | 206,000 | 132,000 |
Diluted weighted average common and potential common shares outstanding | 16,072,000 | 16,135,000 | 16,047,000 |
Diluted net income per share (in Dollars per share) | $ 0.13 | $ 0.51 | $ 0.51 |
Basic net income per share (in Dollars per share) | $ 0.13 | $ 0.52 | $ 0.52 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Marketable Securities [Abstract] | |||
Unrealized gain (loss) on marketable securities | $ (3,973) | $ 872 | $ 2,010 |
Proceeds from sale of marketable securities | 3,854 | 11,245 | 6,150 |
Realized gain from sale of marketable securities | $ 581 | $ 1,073 | $ 333 |
Marketable Securities (Detail_2
Marketable Securities (Details) - Schedule of company acquired equity securities - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Marketable Securities [Abstract] | ||
Cost | $ 24,292 | $ 24,096 |
Market value | $ 20,722 | $ 24,499 |
Inventories, net (Details) - Sc
Inventories, net (Details) - Schedule of inventories, net of allowances - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Inventories Net Of Allowances Abstract | ||
Raw materials | $ 12,987 | $ 16,970 |
Work-in-progress | 2,723 | 3,904 |
Finished goods | 1,615 | 2,945 |
Total inventories | $ 17,325 | $ 23,819 |
Inventories, net (Details) - _2
Inventories, net (Details) - Schedule of obsolescence allowance for inventory - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule Of Obsolescence Allowance For Inventory Abstract | |||
Balance at beginning of the year | $ 4,282 | $ 4,307 | $ 4,316 |
(Written off) additional charges, net | 116 | (25) | (9) |
Balance at the end of the year | $ 4,398 | $ 4,282 | $ 4,307 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets (Details) - Schedule of prepaid expenses and other current assets - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of Prepaid Expenses and Other Current Assets [Abstract] | ||
Value added tax recoverable | $ 27 | |
Rental and utility deposit | 23 | 25 |
Advance to suppliers | 129 | 260 |
Prepayment | 429 | 649 |
Dividend receivable | 164 | 115 |
Others | 404 | 850 |
Total prepaid expenses and other current assets | $ 1,149 | $ 1,926 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment, net (Details) [Line Items] | |||
Net value of computer software included in furniture, fixture and equipment | $ 26 | $ 28 | |
Lease terms | 50 years | ||
Net book value | $ 26,051 | 27,017 | |
Depreciation of property, plant and equipment | $ 1,709 | 1,736 | $ 1,755 |
Long Term Leased Land And Buildings [Member] | |||
Property, Plant and Equipment, net (Details) [Line Items] | |||
Lease terms | 50 years | ||
Land, Buildings and Improvements [Member] | Property Subject to Operating Lease [Member] | |||
Property, Plant and Equipment, net (Details) [Line Items] | |||
Net book value | $ 2,671 | $ 6,819 |
Property, Plant and Equipment_4
Property, Plant and Equipment, net (Details) - Schedule of property, plant and equipment, net consist - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 83,354 | $ 83,297 |
Less: accumulated depreciation and amortization | (57,303) | (56,280) |
Net book value | 26,051 | 27,017 |
Leasehold land and buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 32,233 | 32,233 |
Plant and machinery [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 37,293 | 37,313 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 10,734 | 10,748 |
Motor vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,431 | 1,583 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 4,432 | 4,201 |
Impairment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Impairment | $ (2,769) | $ (2,781) |
Property, Plant and Equipment_5
Property, Plant and Equipment, net (Details) - Schedule of leasehold land and buildings - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 | |
Use Rights [Member] | |||
Property, Plant and Equipment, net (Details) - Schedule of leasehold land and buildings [Line Items] | |||
Cost | [1] | $ 28,077 | $ 28,077 |
Long Term Leased Land And Buildings [Member] | |||
Property, Plant and Equipment, net (Details) - Schedule of leasehold land and buildings [Line Items] | |||
Cost | [2] | 4,156 | 4,156 |
Land, Buildings and Improvements [Member] | |||
Property, Plant and Equipment, net (Details) - Schedule of leasehold land and buildings [Line Items] | |||
Cost | 32,233 | 32,233 | |
Land, Buildings and Improvements [Member] | Property Subject to Operating Lease [Member] | |||
Property, Plant and Equipment, net (Details) - Schedule of leasehold land and buildings [Line Items] | |||
Cost | 4,273 | 10,623 | |
Less: accumulated depreciation and amortization | (1,602) | (3,804) | |
Net book value | $ 2,671 | $ 6,819 | |
[1]The land use rights of state-owned land and buildings erected thereon represent land and buildings located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building with terms of 50 years expiring in 2050.[2]Long term leased land and buildings erected thereon represent land and buildings on collectively-owned land located in the PRC on which an upfront lump-sum payment has been made for the right to use the land and building for a term of 50 years to 2053. Dongguan Chang An Xiaobian District Co-operation, the lessor, is the entity to whom the collectively-owned land has been granted. According to existing PRC laws and regulations, collectively-owned land is not freely transferable unless certain application and approval procedures are fulfilled by the Dongguan Chang An Xiaobian District Co-operation to change the legal form of the land from collectively-owned to state-owned. As of March 31, 2023, the Company is not aware of any steps being taken by the Dongguan Chang An Xiaobian District Co-operation for such application. |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - Schedule of other accrued liabilities - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 587 | $ 1,645 |
Others | 1,402 | 1,305 |
Total other accrued liabilities | $ 1,989 | $ 2,950 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jan. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes (Details) [Line Items] | |||||
Net income (loss) before taxes | $ 2,314 | $ 8,067 | $ 8,706 | ||
Standard income tax rate | 10% | ||||
Percentage of greater than tax | 50% | ||||
Unrecognized tax benefits | $ 806 | $ 1,232 | $ 886 | $ 735 | |
Macau Patacas [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Net income (loss) before taxes | $ 600 | ||||
Standard income tax rate | 12% | ||||
CHINA [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Standard income tax rate | 25% | ||||
CHINA [Member] | Maximum [Member] | |||||
Income Taxes (Details) [Line Items] | |||||
Net operating loss carry forward period | 5 years |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of Provision for Income Taxes - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of provision for income taxes [Abstract] | |||
Current tax - PRC | $ 164 | $ 249 | $ 295 |
Current tax - Macau | 246 | 153 | 26 |
Deferred tax | (155) | (567) | 154 |
Effective tax | $ 255 | $ (165) | $ 475 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of Income Tax Rate Reconciliation - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of statutory tax rate in the PRC to income before income taxes [Abstract] | |||
Provision for income taxes at statutory tax rate in the PRC | $ 578 | $ 2,017 | $ 2,177 |
Tax rate differential on entities not subject to PRC income tax | 520 | (602) | (740) |
Effect of income for which no income tax is chargeable | (1,044) | (1,670) | (934) |
Effect of expense for which no income tax is deductible | 112 | 188 | 75 |
Net change in valuation allowances | 90 | (62) | (103) |
Over provision of income tax in previous years | (1) | (36) | |
Effective tax | $ 255 | $ (165) | $ 475 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of Deferred Income Tax Assets and Liabilties - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of deferred income tax [Abstract] | ||
Deferred income tax assets | $ 262 | $ 259 |
Deferred income tax liabilities | (484) | (659) |
Net deferred income tax liabilities | $ (222) | $ (400) |
Income Taxes (Details) - Sche_4
Income Taxes (Details) - Schedule of Components of Deferred Income Tax - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of components of net deferred income tax [Abstract] | ||
Net operating loss carry forwards | $ 48 | $ 43 |
Provision of employee benefits | 1,267 | 1,150 |
Depreciation and amortization | (1,280) | (1,172) |
Revenue and cost of sales recognized for financial reporting purpose before being recognized for tax purpose | (240) | (382) |
Others | 116 | 4 |
Less: Valuation allowances | (133) | (43) |
Net deferred income tax liabilities | $ (222) | $ (400) |
Income Taxes (Details) - Sche_5
Income Taxes (Details) - Schedule of Unrecognized Tax Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of unrecognized tax benefits [Abstract] | |||
Balance at the beginning of the year | $ 1,232 | $ 886 | $ 735 |
Increase (decrease) related to current year tax positions | (426) | 346 | 151 |
Balance at end of the year | $ 806 | $ 1,232 | $ 886 |
Lease (Details)
Lease (Details) - Building [Member] | Mar. 31, 2023 |
Minimum [Member] | |
Lease (Details) [Line Items] | |
Lease term | 1 month |
Maximum [Member] | |
Lease (Details) [Line Items] | |
Lease term | 36 months |
Lease (Details) - Schedule of F
Lease (Details) - Schedule of Future Rental Income $ in Thousands | Mar. 31, 2023 USD ($) |
Schedule of Future Rental Income to be Received [Abstract] | |
Year ending March 31, 2024 | $ 584 |
Year ending March 31, 2025 | 190 |
Total minimum future rental income | $ 774 |
Lease (Details) - Schedule of O
Lease (Details) - Schedule of Operating Lease Income - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Operating Lease Income [Abstract] | ||
Operating lease income | $ 1,450 | $ 2,418 |
Other information: | ||
Operating cash flows from operating leases as lessor | $ 1,698 | $ 2,539 |
Lease (Details) - Schedule of_2
Lease (Details) - Schedule of Operating Lease Cost - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Schedule of Operating Lease Cost [Abstract] | |||
Operating lease costs | $ 76 | $ 111 | $ 71 |
Total leases costs | $ 76 | $ 111 | $ 71 |
Lease (Details) - Schedule of S
Lease (Details) - Schedule of Supplemental Cash Flow Information Lease - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Supplemental cash flow information for our leases was as follows | |||
Operating cash paid for operating lease | $ 76 | $ 111 | $ 71 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended |
Mar. 31, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Capital commitments for purchase of plant and machinery, and leasehold improvement expected to be disbursed | $ 129 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Chinese government state pension expense | $ 754 | $ 784 | $ 165 |
Stock Option Plan (Details)
Stock Option Plan (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 07, 2013 | Aug. 13, 2010 | Jan. 07, 2002 | Mar. 15, 1995 | Aug. 17, 2007 | Sep. 19, 2005 | Sep. 30, 2003 | Sep. 29, 1997 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted | 5,669,000 | ||||||||||
Expiration period of options | 10 years | ||||||||||
Stock-based compensation expense (in Dollars) | |||||||||||
Weighted average remaining contractual life | 1 year 3 months 18 days | ||||||||||
Options available for future grant | 1,318,000 | 1,318,000 | |||||||||
Number of vested shares | 400,000 | 400,000 | |||||||||
Intrinsic value of options vested (in Dollars) | $ 224 | $ 628 | |||||||||
Common Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of vested shares | 400,000 | 400,000 | |||||||||
Intrinsic value of options outstanding (in Dollars) | $ 224 | $ 628 | |||||||||
Stock Option Plan Three [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock option plan, additional shares authorized | 900,000 | ||||||||||
Stock option plan, shares authorized | 3,500,000 | ||||||||||
The 1995 Stock Option [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Purchase shares of Common Stock | 1,012,500 | ||||||||||
Increased shares of common stock | 549,000 | ||||||||||
Total shares of common stock | 1,561,500 | ||||||||||
The 2001 Stock Option [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Purchase shares of Common Stock | 1,125,000 | ||||||||||
The 2003 Stock Option [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Purchase shares of Common Stock | 900,000 | ||||||||||
Increased shares of common stock | 800,000 | 400,000 | 500,000 | ||||||||
Total shares of common stock | 2,600,000 | 1,800,000 | 1,400,000 |
Stock Option Plan (Details) - S
Stock Option Plan (Details) - Schedule of Stock-Based Payment Activity - $ / shares | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Number of stock options | |||
Number of stock options | |||
Outstanding at beginning of the year (in Shares) | 400,000 | 470,000 | 470,000 |
Exercised during the year (in Shares) | (20,000) | ||
Cancelled during the year (in Shares) | (50,000) | ||
Outstanding and exercisable at the end of the year (in Shares) | 400,000 | 400,000 | 470,000 |
Weighted Average Exercise price | |||
Number of stock options | |||
Outstanding at beginning of the year | $ 2.09 | $ 2.1 | $ 2.1 |
Exercised during the year | 2.14 | ||
Cancelled during the year | 2.14 | ||
Outstanding and exercisable at the end of the year | 2.09 | 2.09 | 2.1 |
Range of exercise price per share | 2.09 | 2.09 | |
Weighted Average Grant Date Fair Value | |||
Number of stock options | |||
Outstanding at beginning of the year | 0.5 | 0.51 | 0.51 |
Exercised during the year | 0.549 | ||
Cancelled during the year | 0.549 | ||
Outstanding and exercisable at the end of the year | $ 0.5 | $ 0.5 | 0.51 |
Minimum [Member] | Weighted Average Exercise price | |||
Number of stock options | |||
Range of exercise price per share | 2.09 | ||
Maximum [Member] | Weighted Average Exercise price | |||
Number of stock options | |||
Range of exercise price per share | $ 2.14 |
Other (expenses) income, net (D
Other (expenses) income, net (Details) - Schedule of other (expenses) income, net - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |||
Gain (loss) on disposal of property, plant and equipment, net | $ 18 | $ (24) | $ 22 |
Foreign exchange gain (loss), net | (256) | (352) | 567 |
(Provision for) reversal of credit losses, net | 229 | 148 | (397) |
Others | 1,023 | 302 | 213 |
Other income, net | $ 1,014 | $ 74 | $ 405 |
Non-operating (expenses) inco_3
Non-operating (expenses) income, net (Details) - Schedule of Non-operating (expenses) income, net - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income, Nonoperating [Abstract] | |||
Dividend income from marketable securities | $ 1,093 | $ 974 | $ 802 |
Interest income from bank deposits | 282 | 245 | 235 |
Unrealized gain (loss) from marketable securities | (3,973) | 872 | 2,010 |
Realized gain from sales of marketable securities | 581 | 1,073 | 333 |
Rental income, net of depreciation charges | 1,328 | 2,209 | 2,026 |
Others | 116 | (65) | 39 |
Non-operating (expenses) income, net | $ (573) | $ 5,308 | $ 5,445 |
Operating Risk (Details)
Operating Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Risk (Details) [Line Items] | ||||
Total net sales percentage | 10% | |||
Percentage of accounts receivable | 10% | |||
Accounts receivable written off (in Dollars) | $ 935 | |||
Net provision for credit losses (in Dollars) | (229) | (148) | 397 | |
Allowances for credit losses (in Dollars) | $ 39 | $ 268 | $ 1,351 | $ 954 |
Customer Concentration Risk [Member] | Customers Accounting [Member] | ||||
Operating Risk (Details) [Line Items] | ||||
Total net sales percentage | 10% | 10% | 10% | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ||||
Operating Risk (Details) [Line Items] | ||||
Total net sales percentage | 10% | 10% | ||
Supplier Concentration Risk [Member] | ||||
Operating Risk (Details) [Line Items] | ||||
Total net sales percentage | 10% | 10% | 10% |
Operating Risk (Details) - Sche
Operating Risk (Details) - Schedule of Operating Risks - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |||||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | ||||
Customer B [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 21.40% | 20.10% | 19.30% | |||
Customer C [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | [1] | 11.60% | 10% | |||
Customer D [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | [1] | [1] | 11.20% | |||
Customer E [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 19.60% | [1] | [1] | |||
Customer F [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | [1] | [1] | 11.20% | |||
[1]Less than 10% |
Operating Risk (Details) - Sc_2
Operating Risk (Details) - Schedule of Operating Risks | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | |||
Customer B [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | [1] | 10.50% | ||
Customer E [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 24% | 17.60% | ||
Customer G [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 15.40% | [1] | ||
[1]Less than 10% |
Segment Information (Details) -
Segment Information (Details) - Schedule of Major Activities for Reportable Segments - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment: | |||
Income (loss) before income tax | $ 2,314 | $ 8,067 | $ 8,706 |
Injection Molded Plastic Parts [Member] | |||
Segment: | |||
Net sales | 15,838 | 23,586 | 20,325 |
Intersegment sales | 15,838 | 23,586 | 20,325 |
Income (loss) before income tax | (2,421) | 4,229 | 6,025 |
Injection Molded Plastic Parts [Member] | Intersegment Eliminations [Member] | |||
Segment: | |||
Net sales | (221) | (241) | (461) |
Intersegment sales | (221) | (241) | (461) |
Electronic Products [Member] | |||
Segment: | |||
Net sales | 61,720 | 62,635 | 45,022 |
Intersegment sales | 61,720 | 62,635 | 45,022 |
Income (loss) before income tax | 6,147 | 5,233 | 3,992 |
Electronic Products [Member] | Intersegment Eliminations [Member] | |||
Segment: | |||
Net sales | |||
Intersegment sales | |||
Segment Total [Member] | |||
Segment: | |||
Net sales | 77,558 | 86,221 | 65,347 |
Intersegment sales | 77,558 | 86,221 | 65,347 |
Income (loss) before income tax | 3,726 | 9,462 | 10,017 |
Segment Total [Member] | Intersegment Eliminations [Member] | |||
Segment: | |||
Net sales | (221) | (241) | (461) |
Intersegment sales | (221) | (241) | (461) |
Sales Eliminations [Member] | |||
Segment: | |||
Net sales | (221) | (241) | (461) |
Intersegment sales | (221) | (241) | (461) |
Income (loss) before income tax | |||
Sales Eliminations [Member] | Intersegment Eliminations [Member] | |||
Segment: | |||
Net sales | 221 | 241 | 461 |
Intersegment sales | 221 | 241 | 461 |
Corporate Expenses [Member] | |||
Segment: | |||
Income (loss) before income tax | (1,412) | (1,395) | (1,311) |
Net Sales [Member] | |||
Segment: | |||
Net sales | 77,337 | 85,980 | 64,886 |
Intersegment sales | 77,337 | 85,980 | 64,886 |
Net Sales [Member] | Intersegment Eliminations [Member] | |||
Segment: | |||
Net sales | |||
Intersegment sales |
Segment Information (Details)_2
Segment Information (Details) - Schedule of Profitability Information for Reportable Segments - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment: | |||
Interest income from bank deposits | $ 282 | $ 245 | $ 235 |
Interest expenses | |||
Injection Molded Plastic Parts [Member] | |||
Segment: | |||
Interest income from bank deposits | 255 | 221 | 213 |
Interest expenses | |||
Electronic Products [Member] | |||
Segment: | |||
Interest income from bank deposits | 27 | 24 | 22 |
Interest expenses |
Segment Information (Details)_3
Segment Information (Details) - Schedule of Asset Information for Reportable Segments - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Segment: | |||
Identifiable assets | $ 110,379 | $ 115,411 | $ 107,860 |
Capital expenditure | 792 | 1,504 | 551 |
Depreciation and amortization | 1,709 | 1,736 | 1,755 |
Injection Molded Plastic Parts [Member] | |||
Segment: | |||
Identifiable assets | 68,025 | 74,373 | 73,209 |
Capital expenditure | 166 | 783 | 269 |
Depreciation and amortization | 1,279 | 1,402 | 1,540 |
Electronic Products [Member] | |||
Segment: | |||
Identifiable assets | 42,354 | 41,038 | 34,651 |
Capital expenditure | 626 | 721 | 282 |
Depreciation and amortization | $ 430 | $ 334 | $ 215 |
Segment Information (Details)_4
Segment Information (Details) - Schedule of Net Sales by Geographical Area - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net sales | |||
Net sales from continuing operations | $ 77,337 | $ 85,980 | $ 64,886 |
United States [Member] | |||
Net sales | |||
Net sales from continuing operations | 12,169 | 10,460 | 7,861 |
CHINA [Member] | |||
Net sales | |||
Net sales from continuing operations | 27,740 | 34,448 | 24,905 |
UNITED KINGDOM [Member] | |||
Net sales | |||
Net sales from continuing operations | 9,108 | 6,736 | 3,259 |
HONG KONG [Member] | |||
Net sales | |||
Net sales from continuing operations | 6,470 | 11,593 | 8,138 |
Europe [Member] | |||
Net sales | |||
Net sales from continuing operations | 13,290 | 13,421 | 9,564 |
Canada [Member] | |||
Net sales | |||
Net sales from continuing operations | 4,699 | 5,503 | 4,680 |
Others [Member] | |||
Net sales | |||
Net sales from continuing operations | $ 3,861 | $ 3,819 | $ 6,479 |
Segment Information (Details)_5
Segment Information (Details) - Schedule of Segment Indentifiable Assets by Geographical Area - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 26,051 | $ 27,017 |
Hong Kong And Macao [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | 1 | 99 |
PRC [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long-lived assets | $ 26,050 | $ 26,918 |
Condensed Financial Informati_3
Condensed Financial Information of Deswell Industries, Inc. (Details) $ in Thousands, ¥ in Millions | 12 Months Ended | ||||
Mar. 31, 2021 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 CNY (¥) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 CNY (¥) | |
Condensed Financial Information of Deswell Industries, Inc. (Details) [Line Items] | |||||
Net assets of subsidiaries restricted from transfer to the parent company | $ 54,722 | $ 58,900 | |||
China, Yuan Renminbi | |||||
Condensed Financial Information of Deswell Industries, Inc. (Details) [Line Items] | |||||
Net assets of subsidiaries restricted from transfer to the parent company | ¥ | ¥ 376 | ¥ 376 | |||
Subsidiary of Common Parent [Member] | |||||
Condensed Financial Information of Deswell Industries, Inc. (Details) [Line Items] | |||||
Amount of related party transaction | $ 90 |
Condensed Financial Informati_4
Condensed Financial Information of Deswell Industries, Inc. (Details) - Condensed Balance Sheet - Parent Company [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 918 | $ 227 |
Prepaid expenses and other current assets | 45 | 45 |
Amounts due from subsidiaries | 8,228 | 12,533 |
Total current assets | 9,191 | 12,805 |
Investments in subsidiaries | 82,154 | 79,666 |
Total assets | 91,345 | 92,471 |
Current liabilities: | ||
Accrued payroll and employee benefits | 1,573 | 1,573 |
Other accrued liabilities | 123 | 120 |
Total current liabilities | 1,696 | 1,693 |
Total shareholders’ equity | 89,649 | 90,778 |
Total liabilities and shareholders’ equity | $ 91,345 | $ 92,471 |
Condensed Financial Informati_5
Condensed Financial Information of Deswell Industries, Inc. (Details) - Condensed Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | |||
Income before income taxes | $ 2,059 | $ 8,232 | $ 8,231 |
Income taxes | 255 | (165) | 475 |
Net income | 2,059 | 8,232 | 8,231 |
Parent Company [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in earnings of subsidiaries | 2,488 | 8,661 | 9,442 |
Operating expenses | 429 | 429 | 1,211 |
Income before income taxes | 2,059 | 8,232 | 8,231 |
Income taxes | |||
Net income | 2,059 | 8,232 | 8,231 |
Share of other comprehensive income (loss) of subsidiaries |
Condensed Financial Informati_6
Condensed Financial Information of Deswell Industries, Inc. (Details) - Condensed Cash Flow Statement - Parent Company [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities | |||
Net income | $ 2,059 | $ 8,232 | $ 8,231 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in earnings of subsidiaries | (2,488) | (8,661) | (9,442) |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (3) | ||
Amounts due from subsidiaries | 4,305 | (782) | 7,774 |
Other accrued liabilities | 3 | 7 | (24) |
Net cash provided by (used in) operating activities | 3,879 | (1,204) | 6,536 |
Cash flows from financing activities | |||
Dividends paid | (3,188) | (3,186) | (2,864) |
Proceeds from exercise of stock options | 43 | ||
Net cash used in financing activities | (3,188) | (3,143) | (2,864) |
Net increase (decrease) in cash and cash equivalents | 691 | (4,347) | 3,672 |
Cash and cash equivalents, beginning of year | 227 | 4,574 | 902 |
Cash and cash equivalents, end of year | $ 918 | $ 227 | $ 4,574 |