v3.25.2
Condensed Financial Information of Deswell Industries, Inc.
12 Months Ended
Mar. 31, 2025
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 for parent company only, 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 $52,697 (equivalent to RMB376 million) and $51,984 (equivalent to RMB376 million) as of March 31, 2024 and 2025, respectively.

Balance sheets

 

March 31,

   

2024

 

2025

Assets

 

 

   

 

 

Current assets:

 

 

   

 

 

Cash and cash equivalents

 

$

204

 

$

212

Prepaid expenses and other current assets

 

 

47

 

 

50

Amounts due from subsidiaries

 

 

7,976

 

 

7,016

Total current assets

 

 

8,227

 

 

7,278

Investments in subsidiaries

 

 

87,195

 

 

95,861

Total assets

 

$

95,422

 

$

103,139

   

 

   

 

 

Liabilities and shareholders’ equity

 

 

   

 

 

Current liabilities:

 

 

   

 

 

Accrued payroll and employee benefits

 

$

1,013

 

$

1,013

Other accrued liabilities

 

 

239

 

 

6

Total current liabilities

 

 

1,252

 

 

1,019

Total shareholders’ equity

 

 

94,170

 

 

102,120

Total liabilities and shareholders’ equity

 

$

95,422

 

$

103,139

Statements of comprehensive income

 

Year ended March 31,

   

2023

 

2024

 

2025

Equity in earnings of subsidiaries

 

$

2,488

 

$

8,229

 

$

11,854

Operating expenses

 

 

429

 

 

520

 

 

716

Income before income taxes

 

 

2,059

 

 

7,709

 

 

11,138

Income taxes

 

 

 

 

 

 

Net income

 

 

2,059

 

 

7,709

 

 

11,138

Share of other comprehensive income of subsidiaries

 

 

 

 

 

 

Total comprehensive income

 

$

2,059

 

$

7,709

 

$

11,138

Statements of cash flows

 

Year ended March 31,

   

2023

 

2024

 

2025

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

2,059

 

 

$

7,709

 

 

$

11,138

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Equity in earnings of subsidiaries

 

 

(2,488

)

 

 

(8,229

)

 

 

(11,854

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid expenses and other current assets

 

 

 

 

 

(2

)

 

 

(3

)

Amounts due from subsidiaries

 

 

4,305

 

 

 

252

 

 

 

960

 

Other accrued liabilities

 

 

3

 

 

 

(444

)

 

 

(233

)

Net cash provided by (used in) operating activities

 

 

3,879

 

 

 

(714

)

 

 

8

 

   

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

Dividends received from subsidiary

 

 

 

 

 

3,188

 

 

 

3,188

 

Net cash provided by investing activities

 

 

 

 

 

3,188

 

 

 

3,188

 

   

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

(3,188

)

 

 

(3,188

)

 

 

(3,188

)

Net cash used in financing activities

 

 

(3,188

)

 

 

(3,188

)

 

 

(3,188

)

   

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

691

 

 

 

(714

)

 

 

8

 

Cash and cash equivalents, beginning of year

 

 

227

 

 

 

918

 

 

 

204

 

Cash and cash equivalents, end of year

 

$

918

 

 

$

204

 

 

$

212

 

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.