Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 80

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 80
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4,
which was in line with the increase in total revenue.

Gross Profit

The gross profit increased
from $13,443,017 for the year ended December 31, 2023 to $15,713,389 for the year ended December 31, 2024, representing an increase
of 16.9%. This increase was primarily attributable to an increase in total revenue.

Gross profit margin decreased
to 43.1% for the year ended December 31, 2024, as compared to 46.8% for the year ended December 31, 2023. The decrease of gross
profit margin was primarily due to: (i) the product mix in fiscal year 2024 had lower unit sale price; (ii) the increase of unit
cost in fiscal year 2024, since our production volume in 2024 was relatively low, resulting in higher fixed costs were allocated to the
cost per unit of the product in 2024.

Selling Expenses

Selling expenses increased
by $1,338,772, or 14.6%, from $9,194,267 for the year ended December 31, 2023 to $10,533,039 for the year ended December 31,
2024. In order to enhance customer experience, the Group opened its KBS Taipei Flagship Store on August 1, 2024, leading to increase of
store-opening expenses, personnel expenses, and other selling expenses. Besides, FST America established a machining tool department in
2024, resulting in higher personnel expenses and operating expenses.

General and Administrative Expenses

General and administrative
expenses increased to $7,527,952 for the year ended December 31, 2024 from $5,838,969 for the year ended December 31, 2023,
representing a 28.9% increase. This increase was primarily due to the increase related to transaction fees and professional fees
incurred in connection with the Business Combination for the year ended December 31, 2024.

Research and Development Expenses

Research and development expenses
decreased to $1,296,969 for the year ended December 31, 2024 from $1,529,690 for the year ended December 31, 2023, representing
a 15.2% decrease. This decrease was primarily attributable to the reclassification of software purchase fee for the year ended December
31, 2024. The Group provided