Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 109

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 109
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 and local competitors in terms of: • Production Technology: The Company possesses advanced manufacturing capabilities and technology, enabling consistent quality and efficiency. • R&D and Innovation: Dedicated R&D efforts ensure a steady stream of new products and rapid development cycles.

71 • Mass Production Capacity: The Company’s production facilities in Taiwan offer a competitive advantage in terms of cost and efficiency as compared to True Temper in the U.S. and Nippon Shaft in Japan. • Global Market Focus: The Company prioritizes the U.S. market, the largest globally, while also actively exploring other regions. Seasonality Historically speaking, in general, driven by the large international exhibitions such as the PGA Merchandise Show and the beginning of new golf season, the Company’s sales in the first quarter of a year are typically higher than the other quarters. The Company’s second -quartersales are primarily impacted by the weather conditions, which affects the length of golf season and the number of discretionary purchases made by golfers. Third -quartersales are generally less than the second quarter as many retailers begin decreasing their inventory levels in anticipation of the end of the golf season. Fourth -quartersales are generally less than the other quarters due to the end of the golf season in the Company’s current key markets. However, this seasonality has been significantly reshaped in recent years. The COVID -19pandemic initially disrupted these patterns by depressing demand in 2020 and 2021. The easing in travel restriction and the rising popularity of golf among millennials help sustain heightened demand for golf equipment throughout 2022. The Company expects that due to increasing geopolitical tension, global economy slowdown and rising inflation rates, the demand for golf equipment will revert to the traditionally observed seasonality pattern. Facilities The Company has historically leased all of its office and plant facilities. The Company’s corporate headquarters are located at No.3, Gongye 1 stRd., Minxiong Township, Chiayi County 621018, Taiwan, where it leases an office with 30,760 square meters pursuant to a lease agreement that is in effect until December 31, 2024. The corporate headquarters primarily contain administrative, factory plant, and warehouse functions. In 2023, the Company purchased land and buildings located in Minxiong Township of Chiayi County, Taiwan to serve as the site of its future factory expansion. We purchased two land parcels including No. 22 and 22 -1of the Industrial Subsection of Touqiao Section and six construction projects including No. 11