Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 104

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 104
---
 oil bath to improve toughness until the temperature becomes uniform throughout the entire length of the shafts, then cooled in air to room temperature. Thereafter the shafts are straightened, polished at the edges to remove 66 burrs, and cut to the final length, put through annealing again, and polished for a final time. Shaft surfaces are then plated in an electroplating machine for the final finish. Finally, quality inspection personnel will examine each manufactured shaft based on the Company’s quality criteria, and those that pass are warehoused pending sales. Supply Chain; Suppliers and Raw Materials Procurement and Supply Chain The Company prioritizes strategic purchasing and inventory management to optimize its supply chain. Through regular production -salesmeetings, the Company assesses order volumes, market demand, raw material consumption, production schedules, and supplier lead times to determine timely procurement needs. This proactive approach fosters stable supply sources and contracted processing, ensuring uninterrupted operations. No supply shortages or disruptions have occurred during the Company’s history. Main Raw Materials and Suppliers The Company’s golf club shafts utilize a combination of iron, carbon fiber, and various decorative materials (coatings, paints, inks, etc.). These raw materials are primarily sourced from established third -partysuppliers in Taiwan, as described further below. While the Company relies on external suppliers for raw materials used in shaft production, all steel shafts are manufactured in -house. The key materials utilized in the production of steel shafts include: •Steel Coils •Nitrogen and Argon •Abrasive Cloth Wheels and Tape •Quenching Oil •Taper Molding Machine Molds •Packaging Cartons 67 The Company engages the following types of suppliers for its business: • Steel coil suppliers: Critical for iron shaft production. The Company has partnered with China Steel Corporation for a stable supply of specialized steel materials. • Material suppliers: Providing additional key materials required for iron shaft production. • Contracted processing factories: Handling production for graphite shafts and metal surface electroplating for steel shafts, a crucial step in ensuring desired appearance. The Company’s procurement policy primarily takes into consideration the Company’s operating strategy and inventory levels. Subject to purchase orders and market demand, the Company typically considers the purchase and consumption of raw materials, production schedule and suppliers’ delivery time in order to judge procurement demand and timing. In order to maintain the stability of supply sources and contracted processing, the Company maintains cooperatives relationship with multiple suppliers and processing factories. The Company generally relies on Taiwanese suppliers for the raw materials