<SEC-DOCUMENT>0001157523-21-001439.txt : 20211122
<SEC-HEADER>0001157523-21-001439.hdr.sgml : 20211122
<ACCEPTANCE-DATETIME>20211122113815
ACCESSION NUMBER:		0001157523-21-001439
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20211122
FILED AS OF DATE:		20211122
DATE AS OF CHANGE:		20211122

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DESWELL INDUSTRIES INC
		CENTRAL INDEX KEY:			0000946936
		STANDARD INDUSTRIAL CLASSIFICATION:	PLASTICS PRODUCTS, NEC [3089]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33900
		FILM NUMBER:		211430895

	BUSINESS ADDRESS:	
		STREET 1:		10B EDIFICIO ASSOCIACAO INDUSTRIAL MACAU
		STREET 2:		32 RUA DO COMANDANTE MATA E OLIVEIRA
		CITY:			MACAO
		STATE:			F4
		ZIP:			00000
		BUSINESS PHONE:		2127320030

	MAIL ADDRESS:	
		STREET 1:		10B EDIFICIO ASSOCIACAO INDUSTRIAL MACAU
		STREET 2:		32 RUA DO COMANDANTE MATA E OLIVEIRA
		CITY:			MACAO
		STATE:			F4
		ZIP:			00000
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>a52537384.htm
<DESCRIPTION>DESWELL INDUSTRIES, INC. 6-K
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    <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-size: 16pt; font-weight: bold;">FORM 6-K</div>
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    <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-size: 16pt; font-weight: bold;">SECURITIES AND EXCHANGE COMMISSION</div>
    <div style="text-align: center; font-weight: bold;">Washington, D.C. 20549</div>
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    <div style="text-align: center; font-weight: bold;">REPORT OF FOREIGN ISSUER</div>
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    <div style="text-align: center; font-weight: bold;">Pursuant to Rule 13a-16 or 15d-16 of the</div>
    <div style="text-align: center; font-weight: bold;">Securities Exchange Act of 1934</div>
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    <div style="text-align: center; font-weight: bold;">For November 22, 2021</div>
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    <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-size: 16pt; font-weight: bold;">DESWELL INDUSTRIES, INC.</div>
    <div style="text-align: center;">(Registrant&#8217;s name in English)</div>
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    <div style="text-align: center;">10B Edificio Associacao Industrial de Macau</div>
    <div style="text-align: center;">32-36 Rua do Comandante Mata e Oliveira</div>
    <div style="text-align: center;">Macau</div>
    <div style="text-align: center;">Special Administrative Region, PRC</div>
    <div style="text-align: center;">&#160;(Address of principal executive offices)</div>
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    <div> <font style="color: rgb(0, 0, 0); font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 36px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly
        authorized.</font></div>
    <div><font style="color: rgb(0, 0, 0); font-size: 13.3333px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-indent: 36px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial; display: inline !important; float: none;"> <br>
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      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);">Deswell Industries, Inc.<br>
      </div>
      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);">by</div>
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      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);">Date: November 22, 2021<br>
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        <div style="text-align: center; font-size: 10pt; font-weight: bold;">Deswell Announces First Half 2022 Results</div>
        <div>&#160;</div>
        <div style="text-align: center; font-size: 10pt; font-weight: bold;">-&#160; Company Announces First Half Cash Dividend of 0.10 Per Share -</div>
        <div>&#160;</div>
        <div style="font-size: 10pt; font-weight: bold;"><u>FOR IMMEDIATE RELEASE</u></div>
        <div>&#160;</div>
        <div style="text-align: justify; font-size: 10pt;">MACAO (November 22, 2021) - Deswell Industries, Inc. (Nasdaq: DSWL) today announced its unaudited financial results for the first six months of
          fiscal 2022, ended September 30, 2021.</div>
        <div>&#160;</div>
        <div style="text-align: justify; font-size: 10pt;">Net sales for the six months ended September 30, 2021 were $39.8 million, an increase of 43.7% compared to net sales of $27.7 million for the
          six months ended September 30, 2020. Net sales increased by 13.5% to $9.9 million in the plastic segment and increased by 57.6% to $29.8 million in the Company&#8217;s electronic segment.&#160;</div>
        <div>&#160;</div>
        <div style="text-align: justify; font-size: 10pt;">Total gross margin decreased to 16.1% of net sales during the six months ended September 30, 2021, as compared to 20.2% of net sales in the
          same period last year.&#160;&#160;Gross profit margin in the plastic segment decreased to 10.7% of net sales for the first half of fiscal 2022, compared to 20.4% of net sales for the corresponding period of last fiscal year.&#160;&#160; The decrease in gross profit
          and margin in the plastic segment was mainly due to increases in raw materials cost, as well as in basic pay rate of labor costs. Gross profit margin in the electronic segment decreased to 17.9% of net sales for the first half of fiscal 2022,
          compared to 20.1% of net sales for the corresponding period of last fiscal year.&#160; The decrease in gross margin in the electronic segment was mainly attributable to increases in raw materials cost, as well as in headcount and pay rate of labor
          cost for the first six months of fiscal 2022.&#160;Operating income in the first half of fiscal 2022 was $1.2 million, compared to operating income of $1.0 million for the same period of fiscal 2021.&#160;</div>
        <div>&#160;</div>
        <div style="text-align: justify; font-size: 10pt;">The Company reported net income of $4.3 million for the six months ended September 30, 2021, compared to net income of $1.5 million for the six
          months ended September 30, 2020. This was primarily due to an increase in non-operating income, as a percentage of sales, for the six months ended September 30, 2021. Deswell reported basic and diluted income per share of $0.27 for the first half
          of fiscal 2022 (based on 15,923,000 and 16,041,000 weighted average shares outstanding), as compared to basic and diluted income per share of $0.10 (based on 15,915,000 and 15,959,000 weighted average shares outstanding) respectively, for the six
          months ended September 30, 2020.</div>
        <div>&#160;</div>
        <div style="text-align: justify; font-size: 10pt;">The Company's financial position remained strong, with $17.4 million in cash and cash equivalents and working capital totaled $61.8 million as
          of September 30, 2021. Furthermore, the Company has no long-term or short-term borrowings as of September 30, 2021.</div>
        <div>&#160;</div>
        <div style="font-size: 10pt;">Mr. Edward So, Chief Executive Officer, commented, &#8220;We&#8217;re
            pleased to have delivered solid revenue growth in the first half of fiscal 2022, driven by sales growth in both our plastics and our electronics segments.&#160; Demand for home audio and entertainment equipment remains strong and as more economies
            start to fully reopen, with the return of live performances and concerts, we&#8217;re also seeing an uptick in sales of professional audio equipment.</div>
        <div><br>
        </div>
        <div style="font-size: 10pt;">&#8220;While no business is immune to ongoing worldwide supply chain challenges, we have been effectively managing through the global component shortage
          thanks largely to our longstanding relationships and close collaborations with our suppliers as well as with our customers.&#160; We recognize that this is a fluid situation and we will remain vigilant as we, and the rest of our industry navigate
          supply challenges.&#8221;</div>
        <div><br>
        </div>
        <div style="font-size: 10pt;">Mr. So concluded, &#8220;Our balance sheet is solid and continues to provide us with the financial flexibility to focus on our long-term performance.&#160;
          With no debt and a strong cash position, we are well positioned to grow our existing customer relationships and to add new customers.&#160; Additionally, we have invested $822 thousand in our manufacturing equipment, including SMT machines and
          injection molding machines, demonstrating our commitment to executing our long term growth strategy and to enhancing our position as a reliable manufacturing partner for both existing and new customers.&#160; We&#8217;re encouraged by the opportunities
          we&#8217;re seeing in the marketplace and focused on operational execution with the goal of driving continued profitability and shareholder value as we move through fiscal year 2022.&#8221;</div>
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        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif; font-weight: bold;">First Half Dividend</div>
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        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">The Company also announces that its board of directors today declared a cash dividend of $0.10 per share for the first half of the fiscal year
          ended September 30, 2021.&#160; The dividend will be payable on December 22, 2021 to shareholders of record as of December 6, 2021.</div>
        <div><br>
        </div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif; font-weight: bold;">About Deswell</div>
        <div><br>
        </div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">Deswell manufactures injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory
          parts for original equipment manufacturers (&#8220;OEMs&#8221;) and contract manufacturers at its factories in the People&#8217;s Republic of China.&#160;&#160;The Company produces a wide variety of plastic parts and components used in the manufacture of consumer and
          industrial products; printed circuit board assemblies using surface mount (&#8220;SMT&#8221;) and finished products such as telephones, telephone answering machines, sophisticated studio-quality audio equipment and computer peripherals.&#160;&#160;</div>
        <div>&#160;</div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">To learn more about Deswell Industries, Inc., please visit the Company&#8217;s website at www.deswell.com.</div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif; font-weight: bold;">Forward-Looking Statements</div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">Statements in this press release that are "forward-looking statements" are based on current expectations and assumptions that are subject to
          risks and uncertainties. For example, our statements regarding our expected growth in sales from the electronic division in the coming year and our efforts to reduce overhead costs in our plastic division are forward-looking statements.&#160;&#160;Actual
          results could differ materially because of the following factors, among others, which may cause revenues and income to fall short of anticipated levels or our overhead expenses to increase: our dependence on a few major customers; vigorous
          competition forcing product price reductions or discounts; the timing and amount of significant orders from our relatively few significant customers; continuing increases in resin prices that cannot be passed on to customers; unexpected
          production delays; obsolete inventory or product returns; losses resulting from fraudulent activity of our customers or employees; labor shortages that increase labor and costs; changes in the mix of product products we manufacture and sell;
          adverse currency fluctuations in the renminbi and Hong Kong dollar when translated to US dollars; potential new accounting pronouncements; and the effects of travel restrictions and quarantines associated with major health problems, such as the
          Severe Acute Respiratory Syndrome, on general economic activity.</div>
        <div><br>
        </div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">For further information regarding risks and uncertainties associated with the Company&#8217;s business, please refer to the &#8220;Risk Factors&#8221; section of
          Company&#8217;s Annual Report on Form 20-F, copies of which may be obtained from the Website maintained by the Securities and Exchange Commission at http://www.sec.gov.</div>
        <div><br>
        </div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">All information in this release is made as of the date of this press release.&#160;&#160;Deswell undertakes no duty to update any forward-looking
          statement to conform the statement to actual results or changes in Deswell&#8217;s expectations.</div>
        <div><br>
        </div>
        <div>&#160;</div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif; font-weight: bold;">Investor Relations Contact:</div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">John Nesbett/Jennifer Belodeau</div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">IMS Investor Relations</div>
        <div style="text-align: justify; font-family: 'Times New Roman',Times,serif;">203.972.9200</div>
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      <div>
        <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-weight: bold;">DESWELL INDUSTRIES, INC.</div>
        <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-weight: bold;">CONSOLIDATED BALANCE SHEET</div>
        <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-weight: bold;">(U.S. dollars in thousands)</div>
        <div style="text-align: center; font-family: 'Times New Roman',Times,serif; font-weight: bold;"> <br>
        </div>
        <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;">
          <table cellspacing="0" cellpadding="0" border="0" style="font-family: 'Times New Roman',Times,serif; font-size: 10pt; text-align: left; color: rgb(0, 0, 0); width: 100%;" id="zc551ef4b000d43fdadd739c474cdc900">

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                  <div style="text-align: center;">September 30,</div>
                </td>
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                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
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                  <div style="text-align: center;">March 31,</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
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                  <div style="text-align: center;"><u> 2021</u></div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div style="text-align: center;"><u>2021</u></div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
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                  <div>ASSETS</div>
                </td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div style="text-align: center;"> (Unaudited)</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div style="text-align: center;"> (Audited)</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">
                  <div>Current assets :</div>
                </td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Cash and cash equivalents</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>17,379</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>20,223</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Fixed deposits maturing over three months</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>3,070</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>2,700</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Time deposits maturing over twelve months - current portion</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>1,543</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>-</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Marketable securities (note 3)</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>24,316</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>22,373</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Accounts receivable, net</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>17,502</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>14,708</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Inventories (note 2)</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>20,992</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>16,193</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                  <div>Prepaid expenses and other current assets</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>3,420</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>2,489</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>&#160;&#160;&#160;&#160;&#160;&#160;Total current assets</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>88,222</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>78,686</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                  <div>Property, plant and equipment - net</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>27,246</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>27,323</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                  <div>Time deposits maturing over twelve months</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>308</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>1,851</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 4px;" colspan="1">
                  <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total assets</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>115,776</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>107,860</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                  <div>LIABILITIES AND SHAREHOLDERS' EQUITY</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                  <div>Current liabilities</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Accounts payable</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>12,157</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>9,522</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Accrued payroll and employee benefits</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>7,630</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>7,107</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Customer deposits</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>3,156</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>1,683</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Other accrued liabilities</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>2,409</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>2,016</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                  <div>Income taxes payable</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>1,063</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>886</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>&#160;&#160;&#160;&#160;&#160;&#160;Total current liabilities</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>26,415</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>21,214</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Deferred income tax liabilities</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>923</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>957</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
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                  <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Total liabilities</div>
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                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>27,338</div>
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                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>22,171</div>
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                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
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              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
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              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                  <div>Shareholders' equity</div>
                  <div> <br>
                  </div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Common shares nil par value; authorized 30,000,000 shares; 17,061,810, and 17,081,810</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>&#160;shares issued as of March 31, 2021 and September 30, 2021; 15,915,239 and</div>
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                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>53,202</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>53,143</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>&#160;15,935,239 shares outstanding as of March 31, 2021 and September 30, 2021</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Treasury stock at cost; 1,146,571 and 1,146,571 shares as of</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>(2,821</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                  <div>)</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>(2,821</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                  <div>)</div>
                </td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>&#160;&#160;March 31, 2021 and September 30, 2021</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Additional paid-in capital</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>7,973</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>7,989</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                  <div>Accumulated other comprehensive income</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>5,316</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                  <div>5,316</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                  <div>Retained earnings</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>24,768</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>22,062</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                  <div>&#160;&#160;&#160;&#160;&#160;Total shareholders' equity</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>88,438</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                  <div>85,689</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
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              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 4px;" colspan="1">
                  <div>&#160;&#160;&#160;&#160;&#160;Total liabilities and shareholders' equity</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>115,776</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>107,860</div>
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                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
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      <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
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      <div>
        <div style="text-align: center; font-weight: bold;">DESWELL INDUSTRIES, INC.</div>
        <div style="text-align: center; font-weight: bold;">CONSOLIDATED STATEMENT OF OPERATIONS &amp; COMPREHENSIVE INCOME</div>
        <div style="text-align: center; font-weight: bold;">(UNAUDITED)</div>
        <div style="text-align: center; font-weight: bold;">(U.S. dollars in thousands, except per share data)</div>
        <div style="text-align: center; font-weight: bold;"> <br>
        </div>
        <div style="font-family: 'Times New Roman',Times,serif; font-weight: bold;"> <br>
        </div>
      </div>
      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);">
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            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="6">
                <div style="text-align: center;">Six months ended</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="6">
                <div style="text-align: center;">September 30,</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                <div style="text-align: center;"><u> 2021</u></div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                <div style="text-align: center;"><u>2020</u></div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Net sales</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>$</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>39,782</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>27,690</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Cost of sales</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>33,362</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>22,095</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Gross profit</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>6,420</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>5,595</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Selling, general and administrative expenses</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>5,348</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>4,720</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Other income, net</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>111</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>84</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Operating income</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>1,183</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>959</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Non-operating income, net</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>3,288</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>804</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Income before income taxes</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>4,471</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>1,763</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Income taxes</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>173</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>231</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Net income attributable to Deswell Industries, Inc.</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>4,298</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>1,532</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Other comprehensive income</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 4px;" colspan="1">
                <div>Comprehensive income attributable to Deswell Industries, Inc.</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>4,298</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>1,532</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Net income per share attributable to</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Deswell Industries, Inc. (note 4)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Basic:</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 4px;" colspan="1">
                <div>Net income per share</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>0.27</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>0.10</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Weighted average common shares outstanding</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 4px;" colspan="1">
                <div>shares (in thousands)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>15,923</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>15,915</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Diluted:</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 4px;" colspan="1">
                <div>Net income per share</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>0.27</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>0.10</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Weighted average number of shares</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 4px;" colspan="1">
                <div>outstanding (in thousands)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>16,041</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>15,959</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>

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      </div>
      <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
        <div style="page-break-after: always;" id="DSPFPageBreak">
          <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
      </div>
      <div>
        <div style="text-align: center; font-weight: bold;">DESWELL INDUSTRIES, INC.</div>
        <div style="text-align: center; font-weight: bold;">CONSOLIDATED STATEMENT OF CASH FLOWS</div>
        <div style="text-align: center; font-weight: bold;">(UNAUDITED)</div>
        <div style="text-align: center; font-weight: bold;">(U.S. dollars in thousands)</div>
      </div>
      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);"> <br>
      </div>
      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);">
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">
                <div style="font-weight: bold;">( U.S. dollars in thousands )</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                <div style="text-align: center;">Six months </div>
                <div style="text-align: center;">ended</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                <div style="text-align: center;">Six months </div>
                <div style="text-align: center;">ended</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="2">
                <div style="text-align: center;">September 30,</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="2">
                <div style="text-align: center;">September 30,</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                <div style="text-align: center;"><u> 2021</u></div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                <div style="text-align: center;"><u>2020</u></div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">
                <div>Cash flows from operating activities :</div>
              </td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Net income</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>4,298</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>$</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>1,532</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Adjustments to reconcile net income to net cash</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;provided by operating activities :</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Depreciation and amortization</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>883</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>895</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;(Reversal of) provision for doubtful accounts</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(163</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>432</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;(Reversal of) additional charges for obsolescence allowance of&#160; &#160; &#160; &#160; inventories, net</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(293</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>132</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Loss on disposal of property, plant and&#160;&#160; equipment</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>10</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Unrealized holding (gain) loss on marketable securities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(845</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>527</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Realized gain on disposal of marketable securities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(653</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(54</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Scrip dividend received</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(448</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Exchange loss from marketable securities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>117</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Deferred tax (credit) charge</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(34</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>81</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Accounts receivable</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(2,631</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(2,148</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
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            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Inventories</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(4,506</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(1,718</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
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            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Prepaid expenses and other current assets</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(931</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>144</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Accounts payable</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>2,635</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>3,603</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Accrued payroll and employee benefits</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>523</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>338</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Customer deposits</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>1,473</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>133</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Other accrued liabilities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>393</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>106</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>&#160;&#160;&#160;&#160;&#160;Income taxes payable</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>177</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>95</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Net cash provided by operating activities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>443</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>3,660</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Cash flows from investing activities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Purchase of property, plant and equipment</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(822</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(85</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Proceeds from disposal of property, plant and equipment,</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>16</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Purchase of marketable securities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(7,301</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(3,026</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Proceeds from disposal of marketable securities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>6,739</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>541</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Increase in fixed deposits maturing over three months</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(370</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(2,706</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Increase in fixed deposits maturing over twelve months</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>(27</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Net cash used in investing activities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>(1,738</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>(5,303</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Cash flows from financing activities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
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            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Dividends paid</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(1,592</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(1,432</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
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            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Exercise of stock options</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>43</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>-</div>
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              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Net cash used in financing activities</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>(1,549</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>(1,432</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Cash effect of exchange rate changes</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Net decrease in cash and cash equivalents</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(2,844</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>(3,075</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">
                <div>)</div>
              </td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 2px;" colspan="1">
                <div>Cash and cash equivalents, at beginning of period</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>20,223</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 2px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">
                <div>22,514</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%; padding-bottom: 4px;" colspan="1">
                <div>Cash and cash equivalents, at end of period</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>17,379</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>19,439</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 76.78%;" colspan="1">
                <div>Supplementary disclosures of cashflow information :</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>Cash paid during the period for :</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%;" colspan="1">
                <div>&#160;&#160;&#160;Interest</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">
                <div>-</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
            </tr>
            <tr>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-left: 9pt; width: 76.78%; padding-bottom: 4px;" colspan="1">
                <div>&#160;&#160;&#160;Income taxes</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>89</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                <div>78</div>
              </td>
              <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
        <div style="page-break-after: always;" id="DSPFPageBreak">
          <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
      </div>
      <div>
        <div style="font-weight: bold;">DESWELL INDUSTRIES, INC.<br>
          NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
          (U.S. dollars in thousands except per share data)</div>
        <div>&#160;</div>
        <div><font style="font-weight: bold;">&#160;1.&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-weight: bold;"><u>Management&#8217;s Statement</u></font></div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div style="text-align: justify; margin-left: 26.35pt;">In the opinion of Management, the accompanying unaudited financial statements contain all adjustments (all of which are normal
          and recurring in nature) necessary to present fairly the financial position of Deswell Industries, Inc. (the Company) at September 30, 2021 and March 31, 2021, the results of operations for the six months ended September 30, 2021 and September
          30, 2020, and the cash flows for the six months ended September 30, 2021 and September 30, 2020.&#160;&#160;The notes to the Consolidated Financial Statements contained in the Form 20-F Annual Report filed on July 23, 2021 under the Securities Exchange Act
          of 1934 should be read in conjunction with these Consolidated Financial Statements.</div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div style="font-weight: bold;">2.&#160; &#160; &#160;&#160; <u>Marketable securities and other securities
              investments</u></div>
        <div>&#160;</div>
        <div>&#160;</div>
        <div style="text-align: justify; margin-left: 27pt;">Marketable securities and other securities investments include debt and equity securities of which the aggregate fair value,
          unrealized gain and cost are as follows:</div>
        <div>&#160;</div>
        <div>
          <table cellspacing="0" cellpadding="0" border="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000; width: 100%;" id="z3a289e1cc097441b9a9a11a820202340">

              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="10">
                  <div style="text-align: center; font-weight: bold;">March 31, 2021</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div> </div>
                  <div style="text-align: center; font-weight: bold;"><u>Cost</u></div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div style="text-align: center; font-weight: bold;">Gross </div>
                  <div style="text-align: center; font-weight: bold;">Unrealized </div>
                  <div style="text-align: center; font-weight: bold;">(<u>loss)</u></div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div style="text-align: center; font-weight: bold;"><u>Fair value</u></div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;">
                  <div style="font-weight: bold;">Marketable securities</div>
                </td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 64.66%; padding-bottom: 4px;">
                  <div>&#160;&#160;&#160;&#160;Equity securities</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div style="font-family: 'Times New Roman',Times,serif;">22,842</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$&#160;</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div style="font-family: 'Times New Roman',Times,serif;">(469</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>)</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>22,373</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 64.66%;">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px;">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="10">
                  <div style="text-align: center; font-weight: bold;">September 30, 2021</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div> </div>
                  <div style="text-align: center; font-weight: bold;"><u>Cost</u></div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div style="text-align: center; font-weight: bold;">Gross </div>
                  <div style="text-align: center; font-weight: bold;">Unrealized </div>
                  <div style="text-align: center; font-weight: bold;">gain</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="2">
                  <div style="text-align: center; font-weight: bold;"><u>Fair value</u></div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 64.66%;">
                  <div style="font-weight: bold;">Marketable securities</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 64.66%; padding-bottom: 4px;">
                  <div>&#160;&#160;&#160;&#160;Equity securities</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>23,940</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>376</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9.08%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">
                  <div>24,316</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1.04%; border-bottom: 4px double rgb(0, 0, 0);" colspan="1">&#160;</td>
              </tr>

          </table>
        </div>
      </div>
      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-align: right; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);"> <br>
      </div>
      <div style="color: rgb(0, 0, 0); font-family: 'Times New Roman',Times,serif; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration-style: initial; text-decoration-color: initial; font-size: 13.3333px; background-color: rgb(255, 255, 255);">
        <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;">Marketable Securities</div>
        <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The Company acquired equity securities listed on the Hong Kong Stock Exchange. These securities are recorded at fair value based on quoted market
          prices.</div>
        <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Unrealized gain from these marketable securities for the six months ended September 30, 2021 is included in the non-operating income of the
          consolidated statement of income.</div>
        <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">During the first half of fiscal 2022, there was a realized gain of $653 from the sale of marketable securities.</div>
        <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
          <div style="page-break-after: always;" id="DSPFPageBreak">
            <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
        </div>
        <div>
          <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;"><font style="font-weight: bold;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-weight: bold;"><u>Inventories</u></font></div>
          <div>&#160;</div>
        </div>
        <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">
          <table cellspacing="0" cellpadding="0" border="0" style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; text-align: left; color: #000000; width: 100%;" id="ze30aabdbf8464caabcd14fc38420a54f">

              <tr>
                <td valign="bottom" style="vertical-align: top; padding-left: 9pt;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: top;" colspan="3">
                  <div style="text-align: center;">September 30,</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: top;" colspan="2">
                  <div style="text-align: center;">March 31,</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: top; padding-left: 9pt; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);" colspan="3">
                  <div style="text-align: center;"> 2021</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: top; border-bottom: 2px solid rgb(0, 0, 0);" colspan="2">
                  <div style="text-align: center;"> 2021</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; border-bottom: 2px solid rgb(0, 0, 0);" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: top; padding-left: 9pt;" colspan="1">
                  <div>&#160;&#160;&#160;&#160;&#160;&#160;Inventories by major categories :</div>
                </td>
                <td valign="bottom" style="vertical-align: middle;" colspan="3">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
                <td valign="bottom" style="vertical-align: middle;" colspan="3">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: top; padding-left: 9pt; width: 76%;" colspan="1">
                  <div>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Raw materials</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                  <div>14,249</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                  <div>11,554</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: top; padding-left: 9pt; width: 76%;" colspan="1">
                  <div>&#160;&#160;&#160;Work in progress</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                  <div>4,535</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%;" colspan="1">
                  <div>2,646</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: top; padding-left: 9pt; width: 76%; padding-bottom: 2px;" colspan="1">
                  <div>&#160;&#160;&#160;Finished goods</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px;" colspan="1">
                  <div>2,208</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 solid 2px;" colspan="1">
                  <div>1,993</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 solid 2px;" colspan="1">&#160;</td>
              </tr>
              <tr>
                <td valign="bottom" style="vertical-align: top; padding-left: 9pt; width: 76%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px;" colspan="1">
                  <div>20,992</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; padding-bottom: 4px;" colspan="1">&#160;</td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px;" colspan="1">
                  <div>$</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; text-align: right; width: 9%; border-bottom: #000000 double 4px;" colspan="1">
                  <div>16,193</div>
                </td>
                <td valign="bottom" nowrap="nowrap" style="vertical-align: bottom; width: 1%; border-bottom: #000000 double 4px;" colspan="1">&#160;</td>
              </tr>

          </table>
        </div>
        <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;"> <br>
        </div>
        <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">
          <div style="text-align: left;"><font style="font-weight: bold;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font><font style="font-weight: bold;"><u>Earnings Per Share</u></font></div>
          <div>&#160;</div>
          <div>&#160;</div>
          <div style="margin-left: 26.35pt;">The basic net income per share and diluted net income per share are computed in accordance with ASC No. 260, "Earnings Per
            Share" (formerly the SFAS No.128 &#8220;Earnings Per Share&#8221;).</div>
          <div>&#160;</div>
          <div>&#160;</div>
          <div style="margin-left: 26.35pt;">The basic net income per share is computed by dividing income available to common holders by the weighted average number of
            common shares outstanding during the period.&#160;&#160;Diluted net income per share gives effect to all potentially dilutive common shares outstanding during the period.&#160;&#160;</div>
          <div>&#160;</div>
          <div>&#160;</div>
          <div style="margin-left: 26.35pt;">The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that
            would have been outstanding if the potentially dilutive common shares had been issued.&#160;&#160;In computing the dilutive effect of potential common shares, the average stock price for the period is used in determining the number of treasury shares
            assumed to be purchased with the proceeds from the exercise of options.</div>
          <div>&#160;</div>
          <div>&#160;</div>
          <div style="margin-left: 26.35pt;">The net income for the six months ended September 30, 2021 and 2020 were both from the Company&#8217;s continuing operations.</div>
          <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
            <div style="page-break-after: always;" id="DSPFPageBreak">
              <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
          </div>
          <div>
            <div style="text-align: left; font-weight: bold;">DESWELL INDUSTRIES, INC.</div>
            <div>&#160;</div>
            <div style="text-align: left; font-weight: bold;">MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL<br>
              CONDITION AND RESULTS OF OPERATIONS</div>
            <div>&#160;</div>
            <div style="text-align: left;"><font style="font-weight: bold;"><u>Results of Operations</u></font><br>
              <br>
              <br>
              <u>General</u></div>
            <div>&#160;</div>
            <div>&#160;</div>
            <div>The Company&#8217;s revenues are derived from the manufacture and sale of (i) injection-molded plastic parts and components, and (ii) electronic products
              and subassemblies of audio equipment.&#160;&#160;The Company carries out all of its manufacturing operations in southern China, where it is able to take advantage of the lower overhead costs and less expensive labor rates as compared with Hong Kong.</div>
            <div>&#160;</div>
            <div><u>Six Months Ended September 30, 2021 Compared to Six Months Ended September 30, 2020</u></div>
            <div>&#160;</div>
            <div>Net Sales - The Company's net sales for the six months ended September 30, 2021 were $39,782,000, increase of $12,092,000 or 43.7%, as compared to $27,690,000 in the corresponding period in fiscal 2021. The increase was mainly
                related to increases in sales revenues of $1,183,000 and $10,909,000 in the plastic segment and electronic segment respectively, as compared with the respective net sales from these segments in the corresponding period of the prior
              fiscal year.</div>
            <div><br>
            </div>
            <div>The increase in net sales in the plastic segment was related to an increase in orders from existing customers of $493,000 for printing and office
              equipment, and of $548,000 for plastic component parts for various appliances, such as floor cleaning robots.</div>
            <div>&#160;</div>
            <div>The revenue increase in the electronic segment was mainly due to
                increases in orders of $6,951,000 from existing customers for home entertainment products, and of $3,234,000 for audio work stations equipment from other existing customers.</div>
            <div>&#160;</div>
            <div>Gross Profit - Gross profit for the first half of fiscal 2022 was $6,420,000, representing a gross margin of 16.1%. This compared with the overall
              gross profit and gross margin of $5,595,000 or 20.2% for the first half of fiscal 2021.</div>
            <div><br>
            </div>
            <div>Gross profit in the plastic segment decreased by $721,000 to $1,067,000 or 10.7% of net sales for the six months ended September 30, 2021, as compared to $1,788,000 or 20.4% of net sales, for the same period in the prior
              fiscal year.&#160; The decrease in gross profit and margin in the plastic segment was mainly due to increases in raw materials cost, as well as basic pay rate of labor costs, as a percentage of net sales.</div>
            <div><br>
            </div>
            <div>Gross profit in the electronic segment increased by $1,546,000 to
                $5,353,000 or 17.9% of net sales for the six months ended September 30, 2021, as compared to $3,807,000 or 20.1% of net sales, for the same period
              of last fiscal year.&#160; However, the gross margin decreased mainly due to increase in raw materials and labor costs as a result of increased headcount and basic pay rate of labor cost, as compared with the same period of last fiscal year.</div>
            <div><br>
            </div>
            <div>Selling, general and administrative expenses - SG&amp;A expenses for
                the six months ended September 30, 2021 were $5,348,000 or 13.4% of total net sales, as compared to $4,720,000 or 17.0% of total net sales for the six
                months ended September 30, 2020.</div>
            <div><br>
            </div>
            <div>Corporate expenses decreased by $19,000 to $578,000 for the six months ended September 30, 2021 as compared to $597,000 for the same period ended September 30, 2020. The slight decrease was primarily related to the
              decrease in legal and professional fees.</div>
            <div><br>
            </div>
            <div>SG&amp;A expense in the plastic segment decreased to $1,993,000 or
                20.1% of net sales for the first half of fiscal 2022, compared to $1,903,000 or 21.8% of net sales for the corresponding period in fiscal 2021. The increase in SG&amp;A expense for the first six months of fiscal 2022 was mainly due
              to increase&#160;of $90,000 in staff costs and welfare, as compared with the same period in the prior fiscal year.</div>
          </div>
        </div>
        <div style="clear: both; margin-top: 10pt; margin-bottom: 10pt;" id="DSPFPageBreakArea">
          <div style="page-break-after: always;" id="DSPFPageBreak">
            <hr noshade="noshade" style="border-width: 0px; clear: both; margin: 4px 0px; width: 100%; height: 2px; color: #000000; background-color: #000000;"></div>
        </div>
        <div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">SG&amp;A expenses in the electronic segment increased by $557,000 to $2,777,000 or 9.3% of net sales for the six months ended September 30, 2021,
            compared to $2,220,000 or 11.7% of net sales for the corresponding period in fiscal 2021. The increase in the SG&amp;A expense total was primarily related to an increase of $513,000 in staff costs and welfare, when compared to the corresponding
            period in the prior fiscal year.</div>
          <div><br>
          </div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The staff costs and welfare in SG&amp;A expenses of the plastic and electronic segment increased because the contribution to social insurance had
            been waived in the same period in prior fiscal year.</div>
          <div><br>
          </div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Other income - Other income was $111,000 for the six months ended
              September 30, 2021, as compared to other income of $84,000 in the corresponding six months of the prior fiscal year.</div>
          <div><br>
          </div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">On a segment basis, other income attributable to the plastic segment for the six months ended September 30, 2021 was $68,000, as compared to other
            income of $143,000 for the same period in the prior fiscal year. The decrease in other income was mainly due to an exchange loss of $151,000 and a reversal of $163,000 for provision of doubtful debts during the first half of fiscal 2022, as
            compared to an exchange gain of $555,000 and a provision of $432,000 for doubtful debts during the same period of fiscal 2021.</div>
          <div><br>
          </div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Other income attributable to the electronic segment for the six months
              ended September 30, 2021 was $43,000, as compared to other expense of $59,000 for the corresponding period in the prior fiscal year. This increase in other income was mainly due to a gain of $83,000 from sales of materials, offsetting
            an exchange loss of $63,000 during the six months ended September 30, 2021, as compared to an exchange loss of $109,000 for the same period of last fiscal year.</div>
          <div>&#160;</div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Operating income - Operating income was $1,183,000 for the six months
              ended September 30, 2021, as compared to operating income of $959,000 in the corresponding six months in the prior fiscal year.&#160;&#160;</div>
          <div>&#160;</div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Corporate expenses of $578,000 and $597,000 were incurred during the fiscal year of 2022 and 2021, respectively.</div>
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          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">On a segment basis, the operating loss of the plastic segment was $858,000 in the six months ended September 30, 2021, as compared to operating
            income of $28,000 in the corresponding period in fiscal 2021.&#160;&#160;&#160;The decrease in operating income in the plastic segment was mainly due to the decrease in the gross profit and margin as a percentage of net sales resulting from the relatively
            higher raw materials cost as well as increase in basic pay of labor cost as described above.</div>
          <div>&#160;</div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The electronic segment reported operating income of $2,619,000 in the six months ended September 30, 2021, compared to operating income of $1,528,000
            in the corresponding period in fiscal 2021.&#160;&#160;The increase in operating income was mainly due to the increase in sales volume as described above.</div>
          <div>&#160;</div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Non-operating income &#8211; Non-operating income for the six months ended
              September 30, 2021 was $3,288,000, as compared to non-operating income of $804,000 in the year-ago six months.&#160;&#160;The significant increase was primarily due to increases of $1,372,000 in unrealized holding gain on the fair value of marketable
              securities, of $599,000 in realized gain from the sale of marketable securities and of $368,000 in rental income, as well as of $200,000 in dividend income from securities investments during the six months ended September 30, 2021, as
              compared to the same six months of the prior fiscal year.</div>
          <div>&#160;</div>
          <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Income Taxes &#8211; Income tax for the six months ended September 30, 2021 represented an income tax expense of $207,000 and a deferred tax benefit of $34,000, as compared to an income tax expense of $162,000 and a deferred tax
              provision of $69,000 in the corresponding six months of the prior fiscal year.&#160;&#160;</div>
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            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">On a segment basis, there was income tax expense of $28,000 and a
                deferred tax benefit of $34,000 in the plastic segment for the six months ended September 30, 2021, as compared to income tax expense of $22,000 and a deferred tax provision of $69,000 during the year-ago six months.&#160; Income tax in
              the electronic segment was $179,000 for the six months ended September 30, 2021,&#160;as compared to income tax expense of $140,000&#160;for the corresponding six months of fiscal 2021.</div>
            <div>&#160;</div>
            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Net income &#8211; The Company had net income of $4,298,000 for the six
                months ended September 30, 2021, as compared to net income of $1,532,000 for the six months ended September 30, 2020.&#160;&#160; The increased net income for the first six months of fiscal 2022 was mainly attributed to the increase in sales
              volume in the electronic segment, relatively lower SG&amp;A expenses as a percentage of net sales, and an increase in non-operating income as described above.</div>
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            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Net income for the plastic segment for the six months ended September 30, 2021 totaled $2,459,000, as compared to net income of $1,022,000 for the
              corresponding six months in fiscal 2021.&#160;Increase in net income in the first six months of fiscal 2022 for the plastic segment was mainly the result of increase in non-operating income as described above.</div>
            <div>&#160;</div>
            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">Net income for the electronic segment for the six months ended September 30, 2021 was $2,417,000, compared to net income of $1,107,000 for the
              corresponding six months of fiscal 2021. The increase in net income in the first six months of fiscal 2022 for the electronic segment was mainly attributable to the increase in sales volume and thus operating income as described above.</div>
            <div>&#160;</div>
            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt; font-weight: bold;"><u>Liquidity and Capital Resources</u></div>
            <div>&#160;</div>
            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">The Company relies primarily upon internally generated funds to finance its operations and investments.</div>
            <div>&#160;</div>
            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">As of September 30, 2021, the Company had working capital of $61,807,000 as compared to $57,472,000 at March 31, 2021.&#160;&#160; The Company has generated
              sufficient funds from its operating activities to finance its operations and believes there is little need for external financing.&#160;&#160;The Company had no short-term borrowings or long-term borrowings as of September 30, 2021.&#160;&#160;</div>
            <div>&#160;</div>
            <div style="text-align: justify; font-family: 'Times New Roman', Times, serif; font-size: 10pt;">As of September 30, 2021, the Company had cash and cash equivalents of $17,379,000, as compared to $19,439,000 at September 30, 2020.&#160;&#160;During the
              six months ended September 30, 2021, net cash provided by operating activities was $443,000. Net cash used in investing activities was $1,738,000, mainly due to cash used in purchases of $7,301,000 of marketable securities and $822,000 of
              fixed assets, as well as an increase of $370,000 in fixed deposits maturing over three months, offsetting cash provided by proceeds of $6,739,000 from the sale of marketable securities during the first half of fiscal 2022.&#160; Net cash used in
              financing activities was comprised mainly of $1,592,000 in payment for dividends during the six months ended September 30, 2021.</div>
            <div>&#160;</div>
            <div style="font-family: 'Times New Roman', Times, serif; font-size: 10pt;">As of September 30, 2021, the Company had no general banking facilities.&#160;</div>
            <div>&#160;</div>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
