Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 57

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 57
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 Temper and Nippon Shaft. The Company also faces
competition from other Taiwanese manufacturers in the standard and economy shafts segment. In the premium shaft segment, the Company primarily
competes on build quality, manufacturing capacity, product diversification, technical innovation, brand prestige and competition results.
In the standard and economy shaft segment, the Company primarily competes on manufacturing capacity, pricing and product safety.

The Company differentiates itself through its vertically integrated
business model, encompassing both manufacturing and brand promotion. This allows it to compete effectively with other global and local
competitors in terms of:

  Production Technology: The Company possesses advanced                                   

  R& D and Innovation: Dedicated R& D efforts                           

  Mass Production Capacity: The Company’s production                                                                                     

  Global Market Focus: The Company prioritizes the U. S. market,      

Seasonality

Historically speaking, in general, driven by the large international
exhibitions such as the PGA Merchandise Show and the beginning of new golf season, the Company’s sales in the first quarter of a
year are typically higher than the other quarters. The Company’s second-quarter sales are primarily impacted by the weather
conditions, which affects the length of golf season and the number of discretionary purchases made by golfers. Third-quarter sales
are generally less than the second quarter as many retailers begin decreasing their inventory levels in anticipation of the end of the
golf season. Fourth-quarter sales are generally less than the other quarters due to the end of the golf season in the Company’s
current key markets.

However, this seasonality has been significantly reshaped in recent years.
The COVID-19 pandemic initially disrupted these patterns by depressing demand in 2020 and 2021. The easing in travel restriction
and the rising popularity of golf among millennials help sustain heightened demand for golf equipment throughout 2022. The Company expects
that due to increasing geopolitical tension, global economy slowdown and rising inflation rates, the demand for golf equipment will revert
to the traditionally observed seasonality pattern.

Intellectual Property

The success and competitive edge of the Company are dependent on its
capacity to develop and safeguard core technologies and intellectual property. The Company’s existing products are powered by independently
developed technologies, drawing upon its rich history of production and R& D expertise. This commitment to internal innovation allows
the Company to maintain control over its intellectual property and deliver solutions that cater to specific market demands. From 2008
to 2016, the operations of KBS brand in the