Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 192

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 192
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 the risk it will be unable to provide sufficient capital resources and liquidity to meet its commitments and business needs. The Group is also exposed to liquidity risk on the repayment of matured bank borrowings. As of December 31, 2024 and 2023, short -termbank loans amounted to $15,265,739 and $14,236,270, respectively. Liquidity risk is controlled by the application of financial position analysis and monitoring procedures. When necessary, the Group may turn to bank and other financial institutions to take loans to meet liquidity shortages. (c)Interest rate risk The Group is subject to interest rate risk. Bank interest bearing loans are charged at variable interest rates within the reporting period. The Group is subject to the risk of adverse changes in the interest rates charged by the banks when these loans are refinanced. (d)Credit risks Financial instruments that potentially expose the Group to concentrations of credit risk consist primarily of accounts receivable. The Group conducts credit evaluations of its customers, and generally does not require collateral or other security from them. The Group evaluates its collection experience and long outstanding balances to determine the need for an allowance for credit losses. The Group conducts periodic reviews of the financial condition and payment practices of its customers to minimize collection risk on accounts receivable. There’s no single customer who represented 10% or more of the Group’s total revenue for the years ended December 31, 2024 and 2023. The following table sets forth a summary of single customers who represented 10% or more of the Group’s total accounts receivable:

|                                               |     | As of December 31, |   |     |      |   |
|                                               |     |               2024 |   |     | 2023 |   |
| Percentage of the Group’s accounts receivable |     |                    |   |     |      |   |
| Customer B                                    |     |                 13 | % |     |   12 | % |
| Total                                         |     |                 13 | % |     |   12 | % |

The following table sets forth a summary of single suppliers who represented 10% or more of the Group’s total purchase:

|                                          |     | For the years ended 
        December 31, |   |     |      |   |
|                                          |     |                2024 |   |     | 2023 |   |
| Percentage of the Group’s total purchase |     |                     |   |     |      |   |
|