Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 42

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 42
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Company has secured a significant competitive advantage, creating a foundation for sustained future growth.

Vertically Integrated Business Model

The Company has developed a vertically integrated business model with
design and development, production and marketing capabilities. It stands as one of the few golf shaft manufacturers capable of:

  Shaft Design Research and Development: The Company                                                                               

  Shaft Production: This internal production capacity                                                                           

  Global Brand Marketing: Leveraging its KBS brand, the                                                                            

This integrated approach generates several advantages over other golf
shaft manufacturers:

  Enhanced Profitability: By operating its own brand, the                                                                            

  Brand-Driven Growth: The established KBS                                                                                          

  Production Flexibility: Ownership of independent                                                                                     

In essence, the Company’s unique vertically integrated model
and established brand presence combine to create a robust competitive advantage, positioning it for sustained growth and profitability
within the global golf equipment landscape.

Direct Customer Engagement and Strong R& D Capabilities

The golf shaft industry has seen increasing competition among manufacturers
to launch new products more frequently to meet changing customer preferences. The Company believes that it is well-positioned to
capture greater market share through its close connection with its customer base and its investment in research and development:

  Dedicated Efforts to Professional Players: The Company                                                                                   

  Addressing Retail Demand Through Omni-channel Sales                                                                                       

  Investment in Research and Development: The Company                                                                                       
  has a dedicated research and development team focusing on product design, development, and process improvement. As of December 31, 2024,  
  the R& D team has 21 full time staff, with 1 employee having a doctorate degree, 4 employees having master’s degrees and 16               
  having undergraduate degrees. As of December 31, 2024, the Company registered two utility patents for its products. The focus             
  on research and development of its products and production process allows the Company to rapidly respond to changing market demands and   
  timely deliver products that cater to customer needs.                                                                                     
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Manufacturing Expertise and Efficiency

With more than 30 years of manufacturing experience, the Company
has developed extensive expertise in mechanical manufacturing and metal material processing. Leveraging its manufacturing expertise, the
Company has established an efficient manufacturing process to reduce production costs, and a rigorous quality control process to ensure
product quality.

The Company believes that its manufacturing process has the following
advantages:

  Reduced Manual Labor: