Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 83

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 83
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3, net cash used in operating activities was $1,576,129 and $11,205,424,
respectively. The change was mainly attributable to (i) the increase in cash received from customers resulting from sales growth and (ii)
the decrease in cash outflows for raw material purchases, due to our relatively high inventory reserves at the end of 2023.

Cash Flows Used in Investing Activities

Cash used in investing activities
primarily relate to purchase of property, plant, and equipment.

Net
cash used in investing activities was $4,453,899 and $11,592,307 for the
year ended December 31, 2024 and 2023, respectively. The decrease was primarily due to less investment in land and buildings during
the year ended December 31, 2024 compared with that of fiscal year 2023.

Cash Flows from Financing Activities

Net
cash generated from financing activities was $3,711,358 for the year ended December 31, 2024, which primarily consists of the proceeds
of $41,610,136 from bank borrowings and partially offset by the repayment of $37,898,778 of
bank borrowings.

Net
cash generated from financing activities was $11,302,462 for the year ended December 31, 2023, which primarily consists of the proceeds
of $38,752,418 from bank borrowings and partially offset by the repayment of $24,734,659 of
bank borrowings.

Material Contractual Obligations and Commitments

For a discussion of material
contractual obligations and commitments, see Note 16 “ Commitments and Contingencies” to the Group’s consolidated
financial statements included in this annual report. As of December 31, 2024, besides the significant unrecognized contractual commitments,
the repayments of banks loans and payments of operating lease agreements disclosed in the Group’s consolidated financial statements
or discussed below, the Group does not have other short-term and long-term material cash requirements.

As
of December 31, 2024 and December 31, 2023, short-term bank loans which due within one year amounted to $15,265,739 and $14,236,270, respectively,
the long-term loans amounted to $9,446,467 and $8,597,848, respectively.
The Company has prepared a cash flow forecast for the year ending December 31, 2025. Taking into account the current visibility of customer