UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
August 9, 2018
Commission File
Number:
001-33900
DESWELL INDUSTRIES, INC.
(Translation of registrant’s name
into English)
10B, Edificio Associacao Industrial De Macau
No. 32-36 Rua do Comandante Mata e Oliveira
Macao, Special Administrative Region,
PRC
(Address of principal executive office)
Indicate by check mark whether the registrant files
or will file annual reports under cover of Form 20-F or Form 40-F. Form 20-F
þ
Form 40-F
o
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
o
Indicate by check mark if the registrant is submitting the
Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
o
10B, Edificio Associacao Industrial De Macau
No. 32-36 Rua do Comandante Mata e Oliveira
Macao, SAR, PRC
To
the shareholders of Deswell Industries, Inc.:
The annual meeting of the shareholders
of Deswell Industries, Inc. (“Deswell” or the “Company”) will be held at 3/F of Jetcrown Industrial (Dongguan)
Ltd. at Huangang Industrial Estate, Houjie Town, Dongguan, Guangdong Province, Peoples Republic of China, on Friday, September
14, 2018 at 10:00 a.m. local time for the following purposes:
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1.
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To elect five members of the Board of Directors to service for the ensuing year;
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2.
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To ratify the selection of BDO China Shu Lun Pan Certified Public Accountants LLP as the independent
registered public accountants of the Company for the year ending March 31, 2019; and
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3.
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To consider and act upon such other business as may properly come before the annual meeting or
any adjournments thereof.
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Only holders of common shares, no par
value per share (the “common shares”), of record at the close of business on July 31, 2018 (the “Record Date”)
will be entitled to vote at the annual meeting. Regardless of your plans to attend or not attend the annual meeting, please complete
the enclosed proxy card and sign, date and return it promptly in the enclosed postage paid envelope. Sending in your proxy will
not prevent you from voting in person at the annual meeting.
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By order of the Board of Directors
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Chin Pang Li
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Secretary
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Dated: August 9, 2018
Macao, SAR, PRC
This page intentionally left blank.
10B, Edificio Associacao Industrial De Macau
No. 32-36 Rua do Comandante Mata e Oliveira
Macao, SAR, PRC
Annual meeting at 10:00 a.m. local time
on Friday, September 14, 2018
Your proxy is solicited on behalf of
the Board of Directors of Deswell Industries, Inc. (“Deswell” or the “Company”) for use at the Annual Meeting
of Shareholders to be held at 3/F of Jetcrown Industrial (Dongguan) Ltd. at Huangang Industrial Estate, Houjie Town, Dongguan,
Guangdong Province, Peoples Republic of China, on Friday, September 14, 2018, at 10:00 a.m. local time. If a proxy in the accompanying
form is duly executed and returned, the shares represented by the proxy will be voted as directed. If executed and returned but
no direction is given, the shares will be voted FOR the election of each of the five (5) nominees for directors named in this proxy
statement and FOR the approval of BDO China Shu Lun Pan Certified Public Accountants LLP as the Company’s independent registered
public accountants for the year ending March 31, 2019. A proxy given by a shareholder may be revoked at any time before it is exercised
by notifying the Secretary of the Company in writing of such revocation, by giving another proxy bearing a later date or by voting
in person at the annual meeting.
The cost of this solicitation of proxies
will be borne by the Company. The Company will reimburse banks, brokerage firms, other custodians, nominees and fiduciaries for
reasonable expenses incurred in sending proxy materials to beneficial owners of common shares of the Company.
This proxy statement is being mailed
on or about August 10, 2018 to all holders of common shares of record at the close of business on July 31, 2018.
The Company's Annual Report on Form
20-F for the year ended March 31, 2018, including its complete audited financial statements, as filed with the United States Securities
and Exchange Commission (the “SEC”) is available without charge from the Company by written request addressed to the
attention of Mr. Herman Wong as follows:
Email:
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Fax:
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Mail:
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admin@jetcrown.com.mo
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853-28323265
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Deswell Industries, Inc.
10B, Edificio Associacao Industrial De Macau
No. 32-36 Rua do Comandante Mata e Oliveira
Macao, SAR, PRC
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The Company's Annual Report on Form
20-F for its fiscal year ended March 31, 2018 has been posted on, and is available from, Deswell’s website at
http://www.deswell.com/investors.html
by selecting “Form 20-F.” The Company's Annual Report on Form 20-F and other documents filed or submitted to the
SEC are also available from the SEC’s website at
http://www.sec.gov
.
The Company will satisfy the delivery
requirements for proxy and information statements with respect to two or more shareholders sharing the same address by delivering
a single proxy statement or information statement to those shareholders in order to reduce the amount of duplicate information
that shareholders receive and to lower printing and mailing costs. Additional copies may be obtained, without charge, by contacting
via mail, telephone or e-mail either the Company’s
Investor Relations Representative:
Institutional Marketing Services
51 Locust Avenue, Ste. 204
New Canaan, CT 06840
Phone 203.972.9200
E-mail:
jnesbett@institutionalms.com
or
Transfer Agent and Registrar:
Courier Services:
Computershare
211 Quality Circle, Suite 210
College Station, TX 77845
First Class/Registered/Certified Mail:
Computershare
P.O. Box 30170
College Station, TX 77842-3170
Shareholder Services Number:
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1-800-962-4284
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Shareholder Website:
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www.computershare.com/investor
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Shareholder Online Inquiries:
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https://www-us.computershare.com/Investor/Contact
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In addition, proxy materials for Deswell’s
2018 Annual Meeting may be accessed and downloaded from the website maintained by Computershare at http://www.edocumentview.com/DSWL.
QUESTIONS AND ANSWERS RELATING TO
THE 2018 ANNUAL MEETING
Why did I receive these materials?
Our shareholders as of the close of business
on July 31, 2018, which we refer to as the “Record Date,” are entitled to vote at our annual meeting of shareholders,
which will be held this year on September 14, 2018. As a shareholder, you are invited to attend the annual meeting and are requested
to vote on the items of business (the “Proposals”) described in this proxy statement. We are required to distribute
these proxy materials to all shareholders as of the Record Date. This proxy statement provides notice of the annual meeting of
shareholders and includes information about the Proposals. The accompanying proxy card enables shareholders to vote on the matters
without having to attend the annual meeting in person.
What is a proxy?
A proxy is your legal designation of
another person (the “proxy”) to vote on your behalf. By completing and returning the enclosed proxy card, you are giving
the Company’s Chairman of the Board and/or Chief Executive Officer and/or Chief Financial Officer the authority to vote your
shares in the manner you indicate on your proxy card.
Why did I receive more than one set of voting materials?
You may receive more than one set of
voting materials, including multiple copies of this proxy statement, multiple proxy cards or multiple voting instruction cards.
For example, if you hold your shares in more than one brokerage account, you may receive a separate voting instruction card for
each brokerage account in which you hold shares. If you are a shareholder of record and your shares are registered in more than
one name, you will receive more than one proxy card. If you hold some of your shares in a brokerage account and other shares in
your own name, you will receive a voting instruction card from your broker for the shares the broker holds for you and a proxy
card for the shares you hold in your own name. You will receive multiple proxy cards if you hold your shares in different ways
(e.g., joint tenancy, trusts, and custodial accounts) or in multiple accounts.
If your shares are held by a broker,
bank, trustee or other nominee (i.e., in “street name”), you will receive your proxy card or other voting information
from your broker, bank, trustee or other nominee, and you should return your proxy card or cards to your broker, bank, trustee
or other nominee.
Please complete, sign, date and
return each proxy card and/or voting instruction card that you receive.
What is the difference between a “shareholder
of record” and a “street name” holder?
These terms describe how your shares
are held. If your shares are registered directly in your name with Computershare Investor Services (“Computershare”),
the Company’s transfer agent, you are a “shareholder of record.” If your shares are held in the name of a brokerage,
bank, trust or other nominee as a custodian, you are a “street name” holder.
How many shares must be present or represented to conduct
business at the annual meeting?
The presence at the annual meeting, in
person or by proxy, of the holders of not less than thirty-three and one-third percent (33⅓%) of the aggregate number of
the Company’s common shares outstanding on the Record Date will constitute a quorum, permitting the conduct of business at
the annual meeting. Based on 15,885,239 shares, which is the number of our common shares outstanding on July 31, 2018, the presence
of holders representing at least 5,295,080 of our common shares will be required to establish a quorum for the annual meeting.
Proxies received but marked as abstentions,
votes withheld and broker non-votes will be included in the calculation of the number of votes considered present at the annual
meeting for purposes of establishing the presence of a quorum.
Who is entitled to vote at the annual meeting?
Only shareholders of record at the close
of business on the Record Date are entitled to receive notice of, and to participate in, the annual meeting. If you were a shareholder
of record on the Record Date, you will be entitled to vote all of the shares that you held on that date at the annual meeting,
or any postponements or adjournments of the annual meeting.
If you are not a shareholder of record
because the shares you own are held in “street name” by a bank or brokerage firm, your bank or brokerage firm is required
to vote your shares according to your instructions. In order to vote your shares, you will need to follow the directions your bank
or brokerage firm provides you.
Who can attend the annual meeting?
All shareholders as of the close of business
on July 31, 2018 may attend the annual meeting. However, seating is limited and will be on a first arrival basis.
To attend the annual meeting, please
follow these instructions:
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If you are a shareholder of record, bring proof of ownership of Deswell shares and a form of
identification; or
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If a broker or other nominee holds your shares, bring proof of ownership of Deswell shares through
such broker or nominee and a form of identification.
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Under our Articles of Association, the
Chairman of the Board of Directors serves as Chairman of our meetings of shareholders unless he is not present at the meeting,
in which case our Chief Executive Officer serves as Chairman of the shareholders meeting. The “Articles of Association”
of a business company like Deswell organized under the laws of the British Virgin Islands are comparable to a U.S. company’s
bylaws. As Mr. Richard Pui Hon Lau, our Chairman, is not expected to be in attendance at our 2018 Annual Meeting, Mr. Edward So
Kin Chung, Deswell’s Chief Executive Officer, will serve as Chairman at our 2018 Annual Meeting.
How can I vote my shares in person at the annual meeting?
Shares held in your name as the shareholder
of record may be voted by you in person at the annual meeting. Shares held by you beneficially in “street name” through
a broker, bank or other nominee may be voted by you in person at the annual meeting only if you obtain a legal proxy from the broker,
bank or other nominee that holds your shares giving you the right to vote the shares.
How can I vote my shares without attending the annual
meeting?
Whether you hold shares directly as the
shareholder of record or beneficially in “street name,” you may direct how your shares are voted without attending
the annual meeting. If you are a shareholder of record (that is, if your shares are registered directly in your name with our transfer
agent), you must complete and properly sign and date the accompanying proxy card and return it and it will be voted as you direct.
A pre-addressed envelope is included for your use and is postage paid if mailed in the United States. If you are a shareholder
of record and attend the annual meeting, you may deliver your completed proxy card in person. If you hold shares beneficially in
“street name,” you may vote by submitting voting instructions to your broker, bank or other nominee.
Can I vote by telephone or electronically?
If you are a shareholder of record, you
may vote by telephone, or electronically through the Internet, by following the instructions included in your proxy card. If your
shares are held in “street name,” please check your proxy card or voting instructions received from your broker, bank
or other nominee or contact your broker, bank or other nominee to determine whether you will be able to vote by telephone or electronically
and the deadline for such voting.
Can I change my vote after I return my proxy card?
Yes
. If you are a shareholder
of record, you may revoke or change your vote at any time before the proxy is exercised by delivering to our Secretary at the address
shown at the beginning of this proxy statement a notice of revocation, or by signing a proxy card bearing a later date or by attending
the annual meeting and voting in person.
For shares you hold beneficially in
“street name,” you may change your vote by submitting new voting instructions to your broker, bank or other nominee
or, if you have obtained a legal proxy from your broker, bank or other nominee giving you the right to vote your shares, by attending
the annual meeting and voting in person. In either case, the powers of the proxy holders will be suspended if you attend the annual
meeting in person and so request, although attendance at the annual meeting will not by itself revoke a previously granted proxy.
How many votes do I have?
You will be entitled to one vote for
each common share of Deswell that you own as of the Record Date. As of the Record Date, we had 15,885,239 shares outstanding and
eligible to vote.
Who counts the votes?
Votes will be counted and certified by
Herman Wong, our Chief Financial Officer. If you are a shareholder of record, your signed proxy card is returned directly to Computershare
for tabulation. If you hold your shares in “street name” through a broker, bank or other nominee, your broker, bank
or other nominee will return one proxy card to Computershare on behalf of its clients. Computershare will then report its tabulations
of votes to our Inspector of Election, who will add them to the results of voting by shareholders attending the annual meeting
in person.
What are the Board of Director’s recommendations
on the Proposals to be considered at the annual meeting?
The Board of Directors’ recommendations
are set forth together with the description of each item in this proxy statement. In summary, the Board of Directors recommends
FOR the election of directors named in this proxy statement and FOR the ratification of the selection of BDO China Shu Lun Pan
Certified Public Accountants LLP as Deswell’s independent registered public accountants for the year ending March 31, 2019.
Will shareholders be asked to vote on any other matters?
To the knowledge of the Company and its
management, shareholders will vote only on the matters described in this proxy statement. However, if any other matters properly
come before the annual meeting, the persons named as proxies for shareholders will vote on those matters in the manner they consider
appropriate.
What vote is required to approve each Proposal?
If a quorum is present at the annual
meeting:
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·
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Election of Directors (Proposal 1).
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The affirmative vote of a majority
of the votes cast in person or represented by proxy and entitled to vote at the annual meeting is required for the election of
each of the directors (Proposal 1). A properly executed proxy marked “WITHHOLD” with respect to the election of one
or more directors will not be voted with respect to the director or directors indicated, although the votes represented by the
proxy will be considered present at the annual meeting for purposes of determining whether there is a quorum.
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Ratification of selection of BDO China Shu Lun Pan Certified Public Accountants LLP as Deswell’s
independent registered public accountants for the fiscal year ending March 31, 2019 (Proposal 2).
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The affirmative vote of a majority
of the votes cast in person or represented by proxy and entitled to vote on Proposal 2 is required for approval. Abstentions on
this Proposal will have the same effect as a negative vote on the Proposal but the votes represented by the proxy will be considered
present at the annual meeting for purposes of determining whether there is a quorum.
How are votes counted?
In the election of directors (Proposal
1), you may vote “FOR” all or some of the nominees or your vote may be marked “WITHHOLD” with respect to
one or more of the nominees. You may not cumulate your votes for the election of directors.
For Proposal 2, you may vote “FOR,”
“AGAINST” or “ABSTAIN.” If you elect to “ABSTAIN,” the abstention has the same effect as a
vote “AGAINST.”
If you hold your shares in “street
name” through a broker, bank or other nominee rather than directly in your own name, then your broker, bank or other nominee
is considered the shareholder of record, and you are considered the beneficial owner of your shares. We have supplied copies of
our proxy statement to the broker, bank or other nominee holding your shares of record, and they have the responsibility to send
it to you. As the beneficial owner, you have the right to direct your broker, bank or other nominee on how to vote your shares
at the annual meeting. The broker, bank or other nominee that is the shareholder of record for your shares is obligated to provide
you with a voting instruction card for you to use for this purpose. If you hold your shares in a brokerage account but you fail
to return your voting instruction card to your broker, your shares may constitute “broker non-votes.” Generally, broker
non-votes occur on a matter when a broker is not permitted to vote on that matter without instructions from the beneficial owner
and instructions are not given. Broker non-votes are counted in determining whether a quorum is present. However, in tabulating
the voting results for any particular proposal, shares that constitute broker non-votes are not considered present and entitled
to vote on that proposal.
If a quorum is present at the annual
meeting, the election of each of the directors requires the affirmative vote of a majority of our shares present in person or represented
by proxy at the annual meeting and entitled to vote on the election of directors (Proposal 1).
Similarly, if a quorum is present at
the annual meeting, the ratification of the appointment of our independent auditors (Proposal 2) requires the affirmative vote
of a majority of our shares present in person or represented by proxy at the annual meeting and entitled to vote on the proposals.
Because of certain rules of the New York
Stock Exchange, and their interpretation, which govern when brokers may or may not vote their brokerage clients’ voting securities
in the absence of instructions from the beneficial owners, brokers may not vote on Proposal 1 or 2 without receiving instructions
from the beneficial owners. If brokers neither receive instructions from the beneficial owners nor vote on any of the Proposals,
but nevertheless return signed proxies without voting, a broker non-vote on Proposals 1 and 2 would occur. That broker non-vote
would count for purposes of determining the presence of a quorum at the annual meeting, but would not be voted on Proposal 1 or
Proposal 2.
PROPOSAL NO. 1
ELECTION OF DIRECTORS
The Company’s directors are elected
annually to serve until the next annual general meeting of shareholders and until their successors are qualified and elected or
until their death, resignation or removal. The number of directors presently authorized by the Company’s Articles of Association
is not less than one or more than 12. The current number has been fixed by our directors at five.
Unless otherwise directed by shareholders,
the proxy holders will vote all shares represented by proxies held by them for the election of the nominees named below. The Company
is advised that all nominees have indicated their availability and willingness to serve if elected. In the event that any nominee
becomes unavailable or unable to serve as a director of the Company prior to the voting, the proxy holder will vote for a substitute
nominee in the exercise of his best judgment.
Information Concerning Nominees
Information concerning the nominees based
on data provided by them is set forth below.
Richard
Pui Hon Lau
. Mr. Lau, 74, served as Chief Executive Officer and Chairman of the Board of Directors of the Company and its
predecessors since their inception in 1987 until February 2007, at which time he retired as Chief Executive Officer. Mr. Lau remains
as Chairman of the Board.
Chin
Pang Li.
Mr. Li, 73, has served the Company as a member of the Board of Directors and in various executive capacities with
the Company and its predecessors since their inception in 1987. He became Secretary of the Company in February 1995 and Chief Financial
Officer in May 1995, a position which he held until March 31, 2006. As Executive Director of Manufacturing and Administration for
Plastic Operations, Mr. Li is in charge of the manufacturing and administrative operations for the Company’s plastic products.
Mr. Li received his Bachelor of Science degree from Chun Yan Institute College, Taiwan in 1967.
Hung-Hum
Leung.
Mr. Leung, 72, has been a non-executive director of the Company and member of the Audit Committee since December
1999. Mr. Leung has over 25 years of experience in the manufacture of electronic products. Mr. Leung was the founder of Sharp Brave
Holdings Ltd. (since 2007 known as China Properties Investment Holdings Limited), a Hong Kong public company listed on the Hong
Kong Stock Exchange, and from 1991 to 1995 served as the Chairman of Sharp Brave Holdings Ltd. Since 1995, Mr. Leung has been an
independent consultant to the electronics industry. He received his Bachelor of Science degree in Physics from the National Taiwan
University in 1971.
Allen
Yau-Nam Cham
. Mr. Cham, 71, has been a non-executive director of the Company and member of the Audit Committee since August
2003. He has over 20 years of experience in the securities industry. He obtained his Bachelor of Science degree from St. Mary's
University, Halifax, Canada, Bachelor of Engineering (Electrical)
degree from Nova Scotia Technical College, Halifax, Canada
and Master of Business Administration degree from the University of British Columbia, Canada.
Wing-Ki
Hui.
Mr. Hui, 74, has been a non-executive director of the Company and member of the Audit Committee since October 2004.
Since 1995 he has been the Operation Director of the Electronic Products Division of Tomorrow International Holdings Limited, a
company listed on the Hong Kong Stock Exchange engaged in manufacturing of consumer electronics and printed circuit boards. Prior
to serving in this capacity, Mr. Hui was Executive Director of Sharp Brave International Holdings Limited from 1991 to 1995 and
Director of Sharp Brave Electronics Co., Ltd. from 1984 to 1995. Mr. Hui possesses over 20 years of experience in the electronic
manufacturing industry, and is a graduate of South East Electronic College in Hong Kong.
No family relationship exists among any
of the named directors and nominees or the Company’s executive officers or key employees and no arrangement or understanding
exists between any director or executive officer and any other persons pursuant to which any director or executive officer was
elected as a director or appointed as an executive officer of the Company. The executive officers serve at the pleasure of the
Board of Directors of the Company.
Compensation of Directors and Executive Officers
The amount of compensation (cash benefits)
paid by the Company and its subsidiaries to all directors and to executive officers as a group for services in all service capacities
was approximately $1,343,000 during the year ended March 31, 2018. These amounts exclude amounts paid by the Company or its subsidiaries
as dividends to directors and executive officers in their capacity as shareholders of the Company for the year ended March 31,
2018. No options under the Company’s 2003 Stock Option Plan (or otherwise) were granted to directors and officers for the
year ended March 31, 2018.
Compensation Policy for Outside Directors
Our policy is to pay directors who are
not employees of the Company or any of its subsidiaries $2,000 per month for services as a director, and to reimburse directors
for all reasonable expenses incurred in connection with their services as a director and member of Board committees.
Independence of Directors
The Board has determined that Messrs.
Hung-Hum Leung, Allen Yau-Nam Cham and Wing-Ki Hui are each “independent” within the meaning of Rule 5605(a)(2) of
the NASDAQ Stock Market Rules.
Audit Committee
The Audit Committee meets from time to
time to review the financial statements and matters relating to the audit and has full access to management and the Company’s
auditors in this regard. The Audit Committee recommends the engagement or discharge of the Company’s independent accountants,
consults on the adequacy of the Company’s internal controls and accounting procedures and reviews and approves financial
statements and reports. Deswell’s audit committee consists of Messrs. Hung-Hum Leung, Allen Yau-Nam Cham and Wing-Ki Hui,
each of whom is an independent director within the meaning of that term under the NASDAQ Stock Market Rules. Mr. Allen Yau-Nam
Cham currently acts as the Chairman of the Audit Committee.
Deswell’s Board of Directors has
determined that at least one person serving on the Audit Committee is an “audit committee financial expert” as defined
under Item 16A(b) of Form 20-F promulgated by the SEC, which person is Mr. Allen Yau-Nam Cham.
Other Committees; NASDAQ Compliance
Various corporate governance practices
required of U.S. domestic public companies with securities listed on The NASDAQ Stock Market are not required of foreign private
issuers such as Deswell if such issuers follow their home country practice. Of the corporate governance practices required under
NASDAQ’s Marketplace Rules of U.S. domestic public companies, Deswell follows home country practices and does not have a
compensation committee or a nominating committee consisting of independent directors; does not have nominees to its board
selected or recommended by a majority of its independent
directors; does not have the compensation of its Chief Executive Officer and other executive officers determined or recommended
to the board by a majority of its independent directors; and Deswell’s independent directors do not meet in executive session.
For a further discussion of how our SEC reporting and corporate governance practices differ from those applicable to US domestic
issuers and US NASDAQ-listed companies, see “Our exemptions from certain of the reporting requirements under the Exchange
Act limits the protections and information afforded to investors” beginning on page 19 in the Risk Factors section of Item
3 of our Annual Report on Form 20-F for the year ended March 31, 2018 and under the heading “Other Committees; NASDAQ Compliance”
of Item 6 beginning on page 40 of that Report.
Certain Related Party Transactions
Deswell had no transactions of the kind
specified in Item 7.B. of Form 20-F from April 1, 2016 through the Record Date.
Control of the Company
The Company is not directly owned or
controlled by another corporation or by any foreign government. The following table sets forth, as of June 30, 2018, the beneficial
ownership of the Company's common shares by each person known by the Company to beneficially own 5% or more of the common shares
of the Company and by each member of the Board of Directors and of Senior Management of the Company who beneficially own in excess
of one percent of the Company’s common shares.
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Shares beneficially owned
(1)
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Name of beneficial owner or identity of group
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Amount
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Percent
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Richard Pui Hon Lau
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7,561,283
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(2)
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47.0
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Chin Pang Li
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1,625,750
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(3)
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10.1
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Herman Wong Chi Wah
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50,000
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(4)
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*
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Edward So Kin Chung
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50,000
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(5)
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*
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Hung-Hum Leung
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-
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-
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Allen Yau-Nam Cham
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-
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-
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Wing-Ki Hui
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-
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-
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__________
* Less than 1%.
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(1)
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Based on 15,855,239 shares outstanding on June 30, 2018. However, in accordance with Rule 13d-3(d)
(1) under the Securities Exchange Act of 1934, shares not outstanding but which are the subject of currently exercisable options
have been considered outstanding for the purpose of computing the percentage of outstanding shares owned by the listed person holding
such options, but are not considered outstanding for the purpose of computing the percentage of shares owned by any of the other
listed persons.
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(2)
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Consists of 7,361,283 shares held of record by Mr. Lau and options to purchase 200,000 shares
granted to Mr. Lau under the Company’s stock option plans. Mr. Lau’s options are exercisable at an exercise price of
$2.09 per share, with a term expiring on July 29, 2024.
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(3)
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Consists of 1,425,750 shares held of record by Mr. Li and options to purchase 200,000 shares
granted to Mr. Li under the Company’s stock option plans. Mr. Li’s options are exercisable at an exercise price of
$2.09 per share, with a term expiring on July 29, 2024.
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(4)
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Consists of 30,000 shares held of record by Mr. Wong and options to purchase 20,000 shares granted
to Mr. Wong under the Company’s stock option plans. Mr. Wong’s options are exercisable at an exercise price of $2.14
per share, with a term expiring on March 7, 2022.
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(5)
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Consists of 50,000 shares held of record by Mr. So.
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PROPOSAL 2
RATIFY SELECTION OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTANTS
The Board of Directors has selected BDO
China Shu Lun Pan Certified Public Accountants LLP, which is sometimes referred to in this proxy statement as “BDO China,”
as independent registered public accountants of the Company for the year ending March 31, 2019 and further directed that the Company
submit the selection of its independent registered public accountants for ratification by shareholders at the Company’s annual
meeting.
BDO China acted as Deswell’s principal
accountants for the audit of its financial statements at, and for the years ended, March 31, 2016, 2017 and 2018.
The following table presents the aggregate
fees for professional services and other services rendered to Deswell by BDO China for the years ended March 31, 2017 and March
31, 2018.
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Year ended March 31,
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2017
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2018
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(In thousands)
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Audit fees
(1)
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$
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178
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$
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193
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Audit-related fees
(2)
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—
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|
—
|
|
Tax fees
(3)
|
|
|
—
|
|
|
|
—
|
|
All other fees
(4)
|
|
|
—
|
|
|
|
—
|
|
|
|
$
|
178
|
|
|
$
|
193
|
|
|
(1)
|
Audit Fees consist of fees billed for the annual audit of our consolidated financial statements
and the statutory financial statements of our subsidiaries. They also include fees billed for other audit services, which are those
services that only the external auditor reasonably can provide, and include the provision for consents relating to the review of
documents filed with the SEC.
|
|
(2)
|
There were no other audit-related fees billed by the principal accountant during the last two
fiscal years for assurance and related services that were reasonably related to the performance of the audit not reported under
“Audit Fees” above.
|
|
(3)
|
There were no tax fees billed by the principal accountants during the last two fiscal years for
advice services.
|
|
(4)
|
There were no other fees billed by the principal accountants during the last two fiscal years
for produts and services provided.
|
The Board of Directors recommends that
the shareholders ratify the selection of BDO China Shu Lun Pan Certified Public Accountants LLP as independent registered public
accountants of the Company for the fiscal year ending March 31, 2019. The affirmative vote of a majority of the shares of the Company
present at the annual meeting in person or by proxy is required to ratify the selection of BDO China as independent registered
public accountants of the Company for the year ending March 31, 2019.
If the appointment of BDO China is not
ratified, the Board of Directors will evaluate the basis for the shareholders’ vote when determining whether to continue
the firm’s engagement, but may ultimately determine to continue the engagement or engage another audit firm without re-submitting
the matter to shareholders. Even if the appointment is ratified, the Board of Directors, in its discretion, may act to engage a
different independent auditing firm at any time during the year if the Board of Directors determines that such a change would be
in the Company’s and its shareholders’ best interests.
Audit Committee Pre-approval Policies and Procedures
The Audit Committee’s policy is
to pre-approve all audit and permissible non-audit related services provided by the independent auditors. These services may include
audit services, audit-related services, tax services and other services. Pre-approval is generally provided for up to one year
and any pre-approval is detailed as to the particular service or category of services. Management will periodically report to the
Audit Committee regarding the extent of services provided and the fees for the services performed by the independent auditors in
accordance with this pre-approval policy. The Audit Committee may also pre-approve particular services on a case-by-case basis.
OTHER BUSINESS
The Board of Directors knows of no other
business to be acted upon at the annual meeting. However, if any other matter shall properly come before the annual meeting, the
proxy holder named in the proxy accompanying this statement will have discretionary authority to vote all proxies in accordance
with his best judgment.
|
By order of the Board of Directors
|
|
|
|
Chin Pang Li
|
|
Secretary
|
|
|
Dated August 9, 2018
Macao, SAR, PRC
Deswell Industries, Inc.
IMPORTANT ANNUAL MEETING INFORMATION
Using a black ink pen, mark your votes with an X as
shown in this example. Please do not write outside the designated areas.
Annual Meeting Proxy Card
q PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN
THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q
A Proposals — The Board recommends a vote FOR
all nominees listed and FOR Proposal 2.
01 - Richard Pui Hon Lau
02 - Chin Pang Li
03 - Hung-Hum Leung +
1. Election of Five Directors as follows: For Withhold
For Withhold For Withhold
04 - Allen Yau-Nam Cham
05 - Wing-Ki Hui
2. To ratify the selection of BDO China Shu Lun Pan
Certified Public Accountants LLP as the independent registered public accountants for the year ending March 31, 2019.
For Against Abstain
B
Authorized Signatures — This section must be
completed for your vote to be counted. — Date and Sign Below
Please sign exactly as name(s) appears hereon. Joint
owners should each sign. When signing as attorney, executor, administrator, corporate officer, trustee, guardian, or custodian,
please give full title.
Date (mm/dd/yyyy) — Please print date below.
Signature 1 — Please keep signature within the
box. Signature 2 — Please keep signature within the box.
02VXGD
1 U P X +
Important notice regarding the Internet availability
of proxy materials for the Annual Meeting of shareholders. The Proxy Statement/Notice of Meeting is/are available at: www.edocumentview.com/DSWL
q PLEASE FOLD ALONG THE PERFORATION, DETACH AND RETURN
THE BOTTOM PORTION IN THE ENCLOSED ENVELOPE. q
Proxy — Deswell Industries, Inc.
Notice of 2018 Annual Meeting of Shareholders
Proxy Solicited by Board of Directors for Annual Meeting
To be held on Friday, September 14, 2018, 10:00 A.
M. Local Time,
at 3/F of Jetcrown Industrial (Dongguan) Ltd. at Huangang
Industrial Estate
Houjie Town, Dongguan, Guangdong Province, Peoples
Republic of China
Richard Pui Hon Lau, Edward So Kin Chung and Herman
Chi Wah Wong, or any of them, each with the power of substitution, are hereby authorized to represent and vote the shares of the
undersigned, with all the powers which the undersigned would possess if personally present, at the Annual Meeting of Shareholders
of Deswell Industries, Inc. to be held on September 14, 2018 or at any postponement or adjournment thereof.
Shares represented by this proxy will be voted as
directed by the shareholder. If no such directions are indicated, the Proxies will have authority to vote FOR all nominees and
FOR Proposal 2.
In their discretion, the Proxies are authorized to
vote upon such other business as may properly come before the meeting.
(Items to be voted appear on reverse side.)
SIGNATURES
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.
|
DESWELL INDUSTRIES, INC.
|
|
|
|
|
Date: August 9, 2018
|
By:
/s/
Edward So Kin Chung
|
|
Name:
Edward So Kin Chung
|
|
Title: Chief Executive Officer
|
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