Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 86

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 86
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 2023, the
TWD denominated cash and cash equivalents and restricted cash amounted to $1,806,939 and $1,227,189, respectively. As of December 31,
2024 and 2023, the JPY denominated cash and cash equivalents amounted to $169,939 and $105,373, respectively.

Interest
Rates 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.

Credit
Risk

Credit
risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Group. The
Group’s credit risk was mainly arising from bank deposits, trade receivables, other receivables, other financial assets, and refundable
deposits. The Group limits its credit risk by reviewing its counterparties’ financial condition and payment practices to minimize
collection risks on its accounts receivable.

Liquidity
Risk

The
Group manages liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance its operations and mitigate the
effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with
loan covenants.

D.
Trend Information

Other
than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for
the period from January 1, 2025 till the date of this annual report that are reasonably likely to have a material effect on our net revenues,
income from operations, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be
not necessarily indicative of future operating results or financial condition.

E.
Critical Accounting Estimates

Critical
Accounting Policies and Estimates

Management’s
discussion and analysis of our results of operations and liquidity and capital resources are based on our audited financial information.
The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses and the disclosure of contingent assets and liabilities in our financial statements. On an ongoing
basis, we evaluate our estimates and judgments, including those related to fair value of financial instruments and accrued expenses.
We base our estimates on historical experience, known trends and events and various other factors that we believe to be reasonable under
the circumstances, the results of which form the