Company: FSTWF
Filing Date: 2025-07-25
Form Type: 424B3
Source: 0001213900-25-067790
Chunk: 87

Company: FST Corp.
Filing Date: 2025-07-25
Form: 424B3
Chunk 87
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 the player’s specific requirements and feedback. This approach ensures that the shafts conform to the player’s unique characteristics, which improves his performance, stability and shot -to -shotconsistency. The endorsement by PGA players further improves the brand visibility and increases sales of KBS brand shafts. The industry recognition and customer acceptance have propelled the Company to become a leading supplier of golf shafts. The KBS business has been ranked by the National Golf Foundation in 2023 as among the top 100 businesses in the golf industry. By diversifying its sales channels and fostering strong consumer following and loyalty, the Company has secured a significant competitive advantage, creating a foundation for sustained future growth. Vertically Integrated Business Model The Company develops a vertically integrated business model with design and development, production and marketing capabilities. It stands as one of the few golf shaft manufacturers capable of: • Shaft Design Research and Development:The Company focuses on its accumulated internal shaft -makingtechnological expertise under guidance from its R&D team, and receives inputs and insights from players, to continuously improve on its shaft design and introduce new shaft models. • Shaft Production:This internal production capacity provides substantial control over material costs and production processes, ensuring consistent quality and efficient output. • Global Brand Marketing:Leveraging its KBS brand, the Company has direct access to diverse international markets and all segments of golf -playingclientele, capturing valuable brand profitability that exceeds the typical margins achieved through solely OEM/ODM business models. This integrated approach generates several advantages over other golf shaft manufacturers: • Enhanced Profitability:By operating its own brand, the Company is able to charge brand premiums for its KBS products, which help increase the Company’s gross profit margins as compared to its OEM/ODM peers. • Brand -Driven Growth:The established KBS brand provides the Company with insights to market trends, enabling the Company to quickly identify and capitalize on new market opportunities, further strengthening its competitive position. 56 • Production Flexibility:Ownership of independent production technology and capacity empowers the Company to adapt swiftly to market shifts. This agility allows for resilient allocation of production resources in response to changes in marketing or sales strategies, ensuring efficient operations and rapid response to evolving market dynamics. In essence, the Company’s unique vertically integrated model and established brand presence combine to create a robust competitive advantage, positioning it for sustained growth and profitability within the global golf equipment landscape. Direct Customer Engagement and Strong R&D Capabilities The golf shaft industry has seen increasing competition among manufacturers to launch new products more frequently to meet changing customer preferences.