J-Star Announces Strategic Plan to Exit China and Accelerate Expansion in the United States

Rhea-AI Summary

J-Star (Nasdaq: YMAT) announced on January 6, 2026 a strategic plan to substantially exit China operations and reallocate resources to expansion in the United States, automation-driven manufacturing, and innovation-led growth.

Key moves include curtailing China-focused OEM manufacturing, establishing the company’s first automated production line in the U.S., adopting an asset-light model using third-party manufacturers, reallocating resources to advanced material development and IP, and writing off two minority China investments valued at approximately US$1.7 million.

Positive

• Planned automated U.S. production line to improve efficiency and proximity to customers
• Asset-light model using third-party manufacturers to improve working capital efficiency
• Reallocation to R&D and IP emphasizing material science and product design

Negative

• Write-off of minority China investments totaling approximately US$1.7 million
• Significant curtailment of China OEM manufacturing, reducing direct regional exposure

Key Figures

China minority investments write-off approximately US$1.7 million Long-term investment value of two China-based minority stakes to be written off

YMA Composite stake 19.5% equity investment Interest in YMA Composite Materials (DG) Co., Ltd.

Forwell Sports stake 19.5% equity investment Interest in Forwell Sports Equipment Limited

Bohong Technology ownership 100%-owned subsidiary Bohong Technology Jiangsu Co., Ltd. to be dissolved and deregistered

Dongguan Changrong ownership 100%-owned subsidiary Retained for limited trading purposes during transition

Market Reality Check

$0.5652 Last Close

Volume Volume 336,263 is 2.26x the 20-day average of 148,792, signaling elevated interest. high

Technical Price at $0.517 is trading below the $1.68 200-day moving average, reflecting a prior downtrend.

Peers on Argus 1 Up

YMAT gained 12.88% while several peers like SNES, CNEY and BGLC were modestly higher and BSLK rose sharply, suggesting YMAT’s move is more company-specific than a broad sector shift.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 23	Product launch	Positive	+0.6%	Launch of LITZMO ER-01 carbon fiber e-assist bicycle targeting urban riders.
Dec 18	Interim earnings	Neutral	+6.2%	1H 2025 results showing strong revenue growth but much weaker profitability.
Dec 16	Nasdaq notice	Negative	-9.6%	Nasdaq minimum bid price deficiency notice and outline of compliance timeline.
Dec 09	Dual-class approval	Neutral	+9.1%	Shareholder approval of dual-class structure and increased authorized capital.
Nov 17	AGM announcement	Neutral	+1.1%	Announcement of general meeting to vote on share capital reorganization.

Pattern Detected

Stock has typically reacted positively to growth and governance updates, and negatively to listing-compliance risks.

Recent Company History

Over the past several months, J-Star issued news spanning new products, financial results, listing compliance, and capital structure. A product launch on Dec 23, 2025 saw a mild 0.6% gain. Interim 1H 2025 results on Dec 18, 2025 with $10.6M revenue and thin profitability coincided with a 6.15% rise. A Nasdaq minimum bid price notice on Dec 16, 2025 led to a -9.59% drop. Dual‑class share approval on Dec 9, 2025 and the related meeting notice in November produced modest positive reactions. Today’s strategic shift away from China continues this theme of structural repositioning.

Market Pulse Summary

The stock moved +6.4% in the session following this news. A strong positive reaction aligns with J-Star’s pattern of favorable responses to strategic and structural updates, such as prior capital structure and product announcements. Investors have rewarded moves that emphasize U.S. expansion, automation, and innovation while addressing listing-compliance overhangs. However, the planned US$1.7 million write-off and ongoing transition away from China-based OEM manufacturing highlight execution and transition risks that could temper enthusiasm if progress or profitability lags expectations.

Key Terms

oem manufacturing financial

"transition away from traditional OEM manufacturing activities in China"

OEM manufacturing is when a company makes parts or complete products that another company sells under its own brand; the maker is the original equipment manufacturer even though its name may not appear on the final item. Investors care because OEM contracts drive steady production revenue, affect profit margins and supply-chain risk, and create customer dependency—similar to a bakery that bakes goods for a café to sell under the café’s name, where lost orders or price changes directly hit the baker’s business.

asset-light operating model financial

"Asset-Light Operating Model: J-Star will increasingly leverage third-party manufacturers"

A company strategy that avoids owning heavy physical assets—such as factories, vehicles or property—by leasing, outsourcing or using third-party services instead, like choosing to rent a house rather than buy one. Investors watch this because it usually reduces large upfront spending and can boost reported returns and cash flow, but it also shifts costs into ongoing fees and increases reliance on outside partners, affecting risk, profit margins and valuation.

intellectual property financial

"greater emphasis on proprietary design, research and development, and intellectual property creation"

Intellectual property are legal rights that protect creations of the mind—such as inventions, brand names, designs, software, or secret formulas—giving the owner control over who can use, copy or sell them. For investors, IP is like owning a blueprint or recipe: it can generate steady income through exclusive sales or licensing, boost a company’s competitive edge and valuation, and also create costs or risks if rights must be defended or challenged in court.

geopolitical risk technical

"By reducing direct exposure to geopolitical risk and focusing our resources on automation"

Geopolitical risk is the chance that political events—such as wars, sanctions, trade disputes, regime changes or major diplomatic tensions—will disrupt economies, supply chains, commodity prices or market access. Like an unexpected storm that reroutes travel and delays deliveries, these events can change company revenues, raise costs and make asset values swing, so investors watch them to judge potential losses, volatility and whether to shift their portfolios.

AI-generated analysis. Not financial advice.

TAICHUNG CITY, Taiwan, Jan. 06, 2026 (GLOBE NEWSWIRE) -- J-Star Holding Co., Ltd. (Nasdaq: YMAT) (“J-Star” or the “Company”), a leading provider of innovative carbon fiber and composite solutions serving diverse applications including personal sports equipment, healthcare products, automobile parts, resin systems, and research and development services, today announced a strategic plan to substantially exit its China operations and reallocate resources toward expansion in the United States, automation-driven manufacturing, and innovation-led growth.

This decision reflects J-Star’s proactive response to increasing geopolitical uncertainty, evolving regulatory and policy dynamics in China, and a broader trend of multinational companies reducing their direct exposure to the region. Recent actions by global manufacturers, including Canon and Mercedes-Benz, underscore the shifting global manufacturing landscape. As a Taiwan-based company, J-Star believes it is prudent to reduce operational exposure in China while strengthening its global footprint elsewhere.

As part of this strategy, J-Star plans to establish its first automated production line in the United States and significantly curtail its activities in China. This move is expected to further align the Company with its long-term vision focusing on high-value innovation through design, material science, and automated production technologies.

Strategic Rationale and Key Initiatives

• Exit from China-Focused OEM Manufacturing: J-Star will continue its transition away from traditional OEM manufacturing activities in China, placing greater emphasis on proprietary design, research and development, and intellectual property creation.
• U.S. Expansion and Automation: The Company is preparing to develop its first automated production line in the United States, supporting higher efficiency, supply-chain resilience, and proximity to key customers.
• Asset-Light Operating Model: J-Star will increasingly leverage third-party manufacturers for production, utilizing the Company’s proprietary raw materials and intellectual property. This approach is designed to ensure highly competitive costs without compromising quality, while also improving working capital efficiency.
• Enhanced Focus on Innovation: Resources will be reallocated toward advanced material development, product design, and automation capabilities, which management believes are central to J-Star’s long-term competitive advantage.

China Entity Status and Planned Actions

J-Star currently has interests in four China-based entities, as outlined below:

• YMA Composite Materials (DG) Co., Ltd., 19.5% equity investment
• Forwell Sports Equipment Limited, 19.5% equity investment
• Bohong Technology Jiangsu Co., Ltd., 100%-owned subsidiary
• Dongguan Changrong New Material Technology Co., Ltd., 100%-owned subsidiary

The Company intends to write off its two minority manufacturing investments, which together represent a long-term investment value of approximately US$1.7 million. Bohong Technology Jiangsu Co., Ltd., although wholly owned, has no active operations and will be dissolved and subsequently deregistered with the PRC business registration authority. J-Star will retain Dongguan Changrong New Material Technology Co., Ltd. solely for limited trading purposes during the transition period.

Positioning for Long-Term Growth

Management believes these actions will strengthen J-Star’s risk profile, enhance operational flexibility, and position the Company for sustainable long-term growth in key global markets—particularly the United States.

“This strategic realignment reflects our commitment to building a more resilient, innovation-driven, and globally competitive J-Star,” said Sam Van, Chief Executive Officer of J-Star. “By reducing direct exposure to geopolitical risk and focusing our resources on automation, material science, and IP-driven growth, while being close to customers, we believe we are taking decisive steps to accelerate growth and enhance shareholder value.”

About J-Star Holding Co., Ltd.

J-Star (NASDAQ: YMAT) is a holding company with operations conducted through subsidiaries in Taiwan, Hong Kong, and Samoa with its headquarters in Taiwan. J-Star’s predecessor group was established in 1970, and has accumulated over 50 years of know-how in material composites industry. J-Star develops and commercializes the technology on carbon reinforcement and resin systems. With decades of experience and knowledge in composites and materials, J-Star is able to apply its expertise and technology to design and manufacture a great variety of lightweight, high-performance carbon composite products, ranging from key structural parts of electric bicycles and sports bicycles, rackets, automobile parts to healthcare products. Visit j-starholding.com and ymacorp.com to learn more.

Forward Looking-Statements

Certain statements contained in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the uncertainties related to market conditions and other factors discussed in the “Risk Factors” section of the final prospectus filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Any forward-looking statements contained in this press release speak only as of the date hereof, and J-Star specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

Contact:
Matt Chesler, CFA
FNK IR
646-809-2183
investor@j-starholding.com

FAQ

What did J-Star (YMAT) announce on January 6, 2026 about its China operations?

J-Star said it will substantially exit China-focused OEM manufacturing and significantly curtail activities there while retaining one China entity for limited trading during transition.

How much will J-Star (YMAT) write off related to its China minority investments?

The company intends to write off two minority manufacturing investments with a combined long-term investment value of approximately US$1.7 million.

What U.S. expansion plans did J-Star (YMAT) disclose on January 6, 2026?

J-Star plans to establish its first automated production line in the United States to support efficiency, supply-chain resilience, and proximity to key customers.

How will J-Star (YMAT) change its manufacturing model after exiting China?

J-Star will move to an asset-light operating model, leveraging third-party manufacturers while supplying proprietary raw materials and IP.

Will J-Star (YMAT) dissolve any China subsidiaries as part of the plan?

Yes; Bohong Technology Jiangsu Co., Ltd., a wholly owned entity with no active operations, will be dissolved and deregistered with PRC authorities.