Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 84

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 84
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orders and continued revenue growth in the first quarter of 2025, the Company expects full-year revenue to grow steadily. In addition,
the Company has been in discussions with several financial institutions regarding long-term financing and has already obtained formal
credit approvals for long-term borrowings from two banks, which will help strengthen the Company’s capital structure. As a contingency
plan, if financing progress does not proceed as expected, the Company may dispose of certain non-core land assets. The sale of such assets
is not expected to have a material adverse impact on FST’s day-to-day operations. The details maturity date of each bank loan please
refer to Note 11 “ Borrowings” to the Group’s consolidated financial statements included in this annual report.

The Group leases vehicles and plants under various non-cancellable
operating lease agreements. As of December 31, 2024, the minimum future commitments under these agreements are as follows.

  For the years ending December 31,       Operating  
                                             Leases  
  Total lease commitment                  7,319,006  
 ─────────────────────────────────────────────────────
  2025                                   $2,299,231  
  2026                                    1,303,612  
  2027                                      588,220  
  2028                                      333,149  
  2029 and thereafter                     2,794,794  

Off-Balance Sheet Arrangements

During the periods presented,
the Group did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance or special
purpose entities, which were established for the purpose of facilitating off-balance sheet arrangements.

C. Research and Development, Patents and Licenses, Etc.

The Group owns the production
technology for iron golf shafts. Meanwhile, the iron golf shafts under its private brands, such as KBS Tour and KBS C-Taper, are widely
favored by professional players and amateur players and, therefore, enjoy considerable publicity in the industry. In recent years,
the Group has extended its product lines based on the KBS brand and successively launched the Hybrid, TGI and TD series carbon fiber club
products, thus making the product lines more complete to satisfy the golf brand customers’ needs for one-stop shopping of various
specifications and functions.

Meanwhile, the Group continues
to enhance its production processes and invest in automated equipment to reduce labor costs and shorten delivery times. In recent years,
the Group has utilized Internet of Things (Io