Deswell Industries Inc. (Hong Kong SAR, China)

The Company is an manufacturer of injection-molded plastic parts and components, electronic products and subassemblies and metallic molds and accessory parts for original equipment manufacturers, or “OEMs” and contract manufacturers.
The Company conduct all its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. Beginning in January 2005, the Company also began to engage in the business of distributing audio equipment in China. The Company produces a wide variety of plastic parts and components that are used in the manufacture of consumer and industrial products, using different plastic injection technologies, such as film injection, integrated injection and insert injection. The products include:
• Plastic component of electronic entertainment products;
• cases for flashlights, telephones, paging machines, projectors and alarm clocks;
• toner cartridges and cases for photocopy and printer machines;
• parts for electrical products such as air-conditioning and ventilators;
• parts for audio equipment;
• cases and key tops for personal organizers and remote controls;
• double injection caps and baby products;
• laser key caps; and
• automobile components.
• sophisticated professional audio equipment including digital audio workstation, digital or analogue mixing consoles, instrument amplifiers, signal processors, firewire/USB audio interfaces, keyboard controllers and synthesizers, etc.
• complex printed circuit board assemblies using surface mount technology (“SMT”), ball grip assembly (“BGA”) and pin-through-hole (“PTH”) interconnection technologies and
• finished products which include business communication products such as digital phone systems, or digital keysets and voice over IP, or VoIP, phones, and Metal products manufactured by the Company include metallic molds and accessory parts used in audio equipment, telephones, copying machines, pay telephones, multimedia stations, automatic teller machines, vending machines, etc.
HISTORY
1987: The Company was founded in 1987 in Hong Kong as Jetcrown Industrial, Ltd, an independent manufacturer of injection-molded plastic parts and components and moved its manufacturing operations to China in 1990 to take advantage of lower overhead cost, competitive labor rate and tax concessions available in Shenzhen, China as compared with Hong Kong. The Company were reincorporated on December 2, 1993 as a limited liability International Business Company under the laws of the British Virgin Islands.
1995:The Company's shares are traded exclusively on the NASDAQ Global Market under the symbol “DSWL”.

2003: On January 20, 2003, the Company acquired a further 20 of the outstanding stock of Integrated International Limited (“Integrated”), a subsidiary of the Company, from the minority shareholders. After the acquisition, the Company increased its ownership in Integrated to 71 of the outstanding stock. The purchase consideration for the 20 of the outstanding stock of Integrated was 251,880 common shares of the Company. The value of the purchase consideration was based on the market price of the stocks issued which was lower than the fair value of net assets acquired by 115. The excess was allocated as a pro rata reduction of the amounts that would have been assigned to certain acquired assets.
2005: On April 20, 2005, the Company acquired a further 5 of the outstanding stock from one of the minority shareholders of Integrated. After the acquisition, the Company increased its ownership in Integrated to 76 of the outstanding stock. The purchase consideration for the 5 of the outstanding stock of Integrated was 120,000 common shares of the Company. The value of the purchase consideration was based on the market price of the stocks issued which was higher than the fair value of net assets acquired by 232. The excess purchase price was recorded on the balance sheet as goodwill.
2007:On August 17, 2007, the Company acquired the remaining 24 of the outstanding stock from minority shareholders of Integrated. After the acquisition, the Company increased its ownership in Integrated to 100 of the outstanding stock. The aggregate purchase consideration for the 24 of the outstanding stock of Integrated is 632,080 common shares of the Company and a cash payment of 414. The value of the purchase consideration was based on the market price of the shares issued and the cash payment, which was lower than the fair value of net assets acquired by 1,314. The excess was allocated as a pro-rata reduction of the amounts that would have been assigned to certain acquired assets.
2010: On March 24, 2010, the Company deregistered a fully owned subsidiary, Jetcrown Industrial (Shenzhen) Limited (“JISL”).