Company: FSTWF
Filing Date: 2025-02-28
Form Type: F-1
Source: 0001213900-25-018264
Chunk: 61

Company: FST Corp.
Filing Date: 2025-02-28
Form: F-1
Chunk 61
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 players’ suggestions and needs. Meanwhile, in recent years, it has catered to consumers’ needs and verified the market development trend by managing the KBS brand flagship store. It continues to improve the shaft design and invests capital in the development of new product designs to satisfy customers’ needs rapidly. 38 The Group faces fierce competition in all product categories. In the premium shaft sector, the Group competes with other international brands that are more well -knownand have more financial resources, such as Tempest, Nippon and Project X. In the standard and economy shaft sector, the Group competes with other OEMs in Taiwan, the PRC or other regions both on pricing, delivery lead time, manufacturing capacity and production yield. There is no guarantee that the Group will be able to maintain its competition positioning in any product sector. If the Group’s competition positioning deteriorates, the results of operation, business and financial condition of the Group will be materially and adversely affected. Impact of COVID-19 The COVID -19pandemic affected businesses around the world. Many countries imposed restrictions on travel and enforced store closures, encouraging people to stay at home and avoid gathering in public places. The COVID -19pandemic initially disrupted the seasonal trends of golf equipment industry, dampening demand in 2020. But as lockdowns eased in 2021, a surge in interest in outdoor activities propelled golf’s popularity. However, the extent to which the COVID -19pandemic may impact Group’s long -termresults remains uncertain, and CCT is closely monitoring the impact of COVID -19pandemic internally. See “Risk Factors — Risks Related to FST and the Company’s Business — Unfavorable economic conditions, including as a result of lingering COVID -19 effects, inflation or otherwise, could have a negative impact on consumer discretionary spending and therefore negatively impact the Group’s results of operations, financial condition and cash flows.” Basis of Presentation The Group’s consolidated financial statements have been prepared in accordance with U.S. GAAP. All intercompany accounts and transactions have been eliminated on consolidation. For the purposes of presenting consolidated financial statements, its assets and liabilities and its foreign operations (including subsidiaries in other countries that use currencies which are different from our functional currency) are translated into USD using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity. Components of Results of Operations Revenue