Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 99

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 99
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 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 66 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 and service providers for certain specialized aspects of the manufacture, such as electroplating, physical vapor deposition and metal coating. Certain materials and components may have limited supplier options. However, the Company strategically chooses not to enter into long -termcontracts with any supplier, opting for a flexible order -by -orderapproach. This allows the Company to adapt to market fluctuations and access the best available options at any given time. While this flexibility offers advantages, it also exposes the Company to competitive pressure for raw materials and production capacity. Additionally, the Company has a limited number of manufacturing partners, primarily located in Taiwan and Southeast Asia, who produce specific components for its shaft