Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 32

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 32
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 Pursuant to the Taiwan Permission Regulations for Investment or Technical Cooperation in the PRC and the Review Principles for Investments or Technical Cooperation in the PRC (collectively, “ Permission Regulations”), an investment or technical cooperation made by a Taiwanese investor in the PRC is subject to the restrictions thereunder and requires the approval by the competent Taiwan authority, Taiwan DIR. The restrictions under the Permission Regulations include a negative list in which investment or technical cooperation is prohibited as well as the maximum investment amount. FST does not believe its current operations in the PRC is restricted by the negative list. Furthermore, depending on the amount invested in the PRC, FST may need to obtain approval from the Taiwan DIR in order to make investments in the PRC or to grant licenses to PRC entities. The Taiwan DIR may at its discretion reject FST’s application. If the Taiwan DIR prevents FST from making investment in the PRC or granting licenses to PRC entities, FST may not be able to expand its business in the PRC. Taiwanese investors holding more than 10% of FST Ordinary Shares will be subject to Taiwan regulations on investment or technical cooperation in the PRC for its investment or technical cooperation in the PRC. Under the Permission Regulations, for an investment made by a Taiwanese individual or entity (“ Taiwanese Investor”) in a “third region” company which conducts the investments or technical cooperation in the PRC defined therein and such Taiwanese Investor (i) acts as director, supervisor, manager or equivalent position or (ii) has a shareholding or capital contribution of more than 10% in such third region company, the investment in such a third region company would also be deemed a defined investment in the PRC and therefore be subject to the Permission Regulations. 16 Therefore, for FST’s future investment or technical cooperation in the PRC, FST’s Taiwanese shareholders holding more than10% of FST Ordinary Shares or acting as director, supervisor, manager or equivalent position of FST will need to apply for the foreign investment approval with the competent Taiwan authority, the Taiwan DIR in accordance with the Permission Regulations. There are restrictions on the investment or technical cooperation with the PRC, including, without limitation, the annual investment amount in the PRC shall be capped at U.S.$5 million per year for Taiwan individuals or NTD 80 million or 60% of the higher of its stand -alongnet worth or consolidated net worth, whichever is higher, for a Taiwan small -mediumenterprise. Your indirect investment in the PRC