Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 30

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 30
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 affect FST’s business. Any lack of requisite approvals, licenses, permits or filings or failure to comply with any requirements of Taiwan laws, regulations and policies may materially and adversely affect FST’s daily operations. In accordance with the relevant Taiwan laws and regulations, FST, as the wholly -ownedsubsidiary of FST after the consummation of the Business Combination is required to maintain various approvals, licenses, permits and filings to operate its business, including but not limited to business registration, factory registration, tax registration and those with respect to environment protection. The obtaining of these approvals, licenses, permits and filings are subject to satisfactory compliance with, among other things, the applicable laws and regulations. If FST is unable to obtain any of such licenses and permits or extend or renew any of its current licenses or permits upon their expirations, or if FST is required to incur significant additional costs to obtain or renew these licenses, permits and approvals, FST’s daily operations could be materially and adversely affected. FST is subject to restrictions on paying dividend or making other payments to FST, which may restrict FST’s ability to satisfy its liquidity requirements. As an exempted company with limited liability incorporated under the laws of the Cayman Islands structured as a holding company, after the consummation of the Business Combination, FST may need dividends and other distributions on equity from FST to satisfy its liquidity requirements. Current Taiwan regulations permit FST to pay dividends to their respective shareholders only out of their after -taxaccumulated profits, if any, which shall first make up previous losses and set aside at least 10% of its accumulated profits each year as statutory reserve. These reserves are not distributable as cash dividends. Furthermore, if FST incurs debt on its own behalf in the future, the instruments 15 governing the debt may restrict their ability to pay dividends or make other payments to FST. Any limitation on the ability of FST to distribute dividends or to make payments to FST may restrict FST’s ability to satisfy its liquidity requirements. In addition, the dividend payments by FST to FST shall be subject to the withholding tax of 21%. FST is subject to foreign exchange control imposed by Taiwan authorities, which may affect the paying dividends, repatriating the interest or making other payments to FST. Currently Taiwan regulates only those foreign exchange transactions that involve the conversion of the New Taiwan Dollar into foreign currencies. Pursuant to the relevant provisions of Taiwan Foreign Exchange Control Act, foreign exchange transactions of a