Company: FSTWF
Filing Date: 2025-07-08
Form Type: F-1/A
Source: 0001213900-25-061884
Chunk: 70

Company: FST Corp.
Filing Date: 2025-07-08
Form: F-1/A
Chunk 70
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 rates. FST Taiwan and the Group’s subsidiary in Japan may be exposed to significant currency risks from exchange rate fluctuations and the degree of foreign exchange rates between the U.S. Dollar and the TWD, and between the U.S. Dollar and the JPY. As of December 31, 2024 and 2023, the TWD denominated cash and cash equivalents and restricted cash amounted to $1,806,939 and $1,227,189, respectively. As of December 31, 2024 and 2023, the JPY denominated cash and cash equivalents amounted to $169,939 and $105,373, respectively. 46 Interest Rates 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. Credit Risk Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group’s credit risk was mainly arising from bank deposits, trade receivables, other receivables, other financial assets, and refundable deposits. The Group limits its credit risk by reviewing its counterparties’ financial condition and payment practices to minimize collection risks on its accounts receivable. Liquidity Risk The Group manages liquidity risk by monitoring and maintaining a level of cash deemed adequate to finance its operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants. Discussion of FST Ltd. (formerly Chenghe Acquisition I Co.) Financial Results The financial statements of FST Ltd. (formerly Chenghe Acquisition I Co.) are included in this prospectus for the years ended December31, 2024 and 2023 for completeness, as Chenghe is a wholly owned subsidiary of FST following the closing of the business combination. Prior to the closing of the Business Combination, Chenghe had no operations other than activities related to its formation, IPO, maintenance as a public company, and pursuit of the business combination. Its results for these periods primarily reflect non -operatingincome from trust account interest and expenses related to legal, accounting, and transaction costs. For the year ended December31, 2024, Chenghe reported a net loss of $3.3million, primarily due to operating costs, unrealized losses on derivative liabilities, and changes in the fair value of warrants, partially offset by