J-Star Swings to $1.57 Million First-Half Loss as Revenue Falls

J-Star Holding Co., Ltd. (Nasdaq: YMAT) swung to a $1,567,791 loss after income tax for the six months ended June 30, as operating revenue fell to $6,767,591 from $10,588,835 a year earlier. The company filed unaudited interim results Oct. 23.

J-Star manufactures and trades bicycles, sports accessories and carbon-fiber composite products. Gross profit for the period fell to $961,984 from $2,848,110.

The company attributed lower sales to eliminating legacy China original equipment manufacturer (OEM) business and pursuing U.S. manufacturing opportunities for commercial and defense unmanned aircraft systems.

Chairman and CEO Jing-Bin Chiang said, “The decline in revenue for the first half of 2026 was entirely an intentional and strategic decision.”

Total equity was $2,772,072 at June 30, compared with a $6,777,635 deficit at Dec. 31, 2025. During the period, a related-party loan of $8.2 million was converted into Class A ordinary shares, and Chiang canceled $1,743,411 in shareholder debt. J-Star listed total borrowings of $7,505,763 and net debt of $6,910,750 at June 30.

The company previously outlined plans for a Houston facility to produce unmanned aircraft frames.