DESWELL INDUSTRIES INC

We are an independent manufacturer of injection-molded plastic parts and components, electronic products and subassemblies, and metallic molds and accessory parts for original equipment manufacturers ("OEMs") and contract manufacturers. All manufacturing activities occur in separate plastics, electronics, and metallic operation factories in the People's Republic of China. We produce a variety of plastic parts and components for consumer and industrial products using film injection, integrated injection, and insert injection technologies. These include plastic components for electronic entertainment products, power tools, accessories, outdoor equipment, cases for flashlights, telephones, printers, scanners, parts for industrial components, indoor control switches, audio equipment, cases and key tops for personal organizers and remote controls, double injection caps, parts for medical products like blood test apparatus, laser key caps, automobile components, and plastic components of automatic robots (mop & vacuum). Our electronic products include sophisticated professional audio equipment (digital and analogue audio mixers, amplifiers, signal processors, audio interfaces, network audio equipment, speaker enclosures), high-performance consumer audio products (multi-channel receivers and amplifiers, wired and wireless audio streaming products, headphones), complex printed circuit board assemblies using surface mount technology ("SMT"), automatic insertion ("AI"), and pin-through-hole ("PTH") interconnection technologies, and medical products. Historically, we manufactured metallic molds and parts for audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, and vending machines. Due to potential pollutant emissions, we gradually outsourced metallic component manufacturing during the year ended March 31, 2015. Since March 2015, all metallic components for our audio products are provided by third-party suppliers.