Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 53

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 53
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 with this supplier, so the Company may select another manufacturer to replace or supplement
the production of graphite shafts. The Company typically holds 5 to 6 months of inventory of graphite shafts in reserve in case the
Company needs to find a new manufacturer for graphite shafts.

To protect its intellectual property, the Company has also required
its graphite shafts supplier and the relevant employees at the supplier to enter into non-disclosure agreements restricting the disclosure
or improper use of any design or confidential information that the Company transmits to the supplier when making orders.

The Company periodically reviews its relationship with its graphite
shafts supplier, and is actively exploring other manufacturers to diversify supply.

If there is any production disruption, work stoppage, strike, production
delay, or if there is any breach to the non-disclosure agreement, any improper use, disclosure, theft, appropriation of the Company’s
intellectual property, the business, financial condition, results of operation and prospects of the Company could be materially and adversely
affected.

Supplier Stability and Diversification

The Company maintains long-term relationships with most suppliers,
fostering strong partnerships. The Company does not utilize formal long-term contracts; its established connections ensure reliable
supply. Additionally, for key inputs such as electroplating, the Company maintains multiple qualified supplier options, mitigating potential
disruptions.

Sales and Marketing

Leveraging Taiwan’s exceptional manufacturing capabilities and
cost advantages, the Company’s “ KBS” brand has gained significant recognition in the U. S. golf industry. Consequently,
the Company has evolved from being an OEM for international brands to becoming a retailer of high-end shafts for private branded
golf clubs and branded golf club heads.

In parallel, under its private brand, KBS, the Company has engaged
in OEM contracts for carbon fiber clubs, expanding its product lines to encompass both iron clubs and carbon fiber clubs. This comprehensive
approach addresses customers’ preferences for one-stop shopping, significantly enhancing the Company’s and brands’
capabilities to accept orders and negotiate.

The Company’s proactively develops and promotes its private brand,
“ KBS”. In 2008, the Company launched its popular KBS Tour shaft series. The KBS Tour and subsequent KBS C-Taper steel
shaft series introduced in 2011 had since then been extensively adopted by professional golfers. Starting in 2017, the Company also launched
the KBS Tour Hybrid and TGI graphite series successively, further upgrading KBS brand awareness by expanding its