Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 196

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 16
Chunk 196
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,227,189, respectively. As of December 31, 2024 and 2023, the JPY denominated
cash and cash equivalents amounted to $169,939and $105,373, respectively.

  (b)      Liquidity risk s  

The Group is exposed to liquidity risks, which
is the risk it will be unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. The Group
is also exposed to liquidity risk on the repayment of matured bank borrowings. As of December 31, 2024 and 2023, short-term bank loans
amounted to $15,265,739and $14,236,270, respectively. Liquidity risk is controlled by the application of financial position analysis
and monitoring procedures. When necessary, the Group may turn to bank and other financial institutions to take loans to meet liquidity
shortages.

  (c)      Interest rate risk  

The Group is subject to interest rate risk. Bank
interest bearing loans are charged at variable interest rates within the reporting period. The Group is subject to the risk of adverse
changes in the interest rates charged by the banks when these loans are refinanced.

F-30

FST Corp.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In U. S. dollars, except for share and per
share data, or otherwise noted)

15. CONCENTRATION OF RISK (cont.)

  (d)      Credit risks  

Financial instruments that potentially expose
the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts credit evaluations of its customers,
and generally does not require collateral or other security from them. The Group evaluates its collection experience and long outstanding
balances to determine the need for an allowance for credit losses. The Group conducts periodic reviews of the financial condition and
payment practices of its customers to minimize collection risk on accounts receivable.

There’s no single customer who represented
10% or more of the Group’s total revenue for the years ended December 31, 2024 and 2023.

The following table sets forth a summary of single
customers who represented 10% or more of the Group’s total accounts receivable:

                                                     As of December 31,                            
                                                                   2024              2023          
  Percentage of the Group’s accounts receivable                                                    
 ───────────────────────────────────────────────────────────────────────────────────────────────────
  Customer B                                                                 13                12  
  Total                                                                      13