J-Star Holding Co., Ltd., the Taiwanese maker of carbon fiber and composite solutions supporting rackets and bikes, reported revenues climbed 30.7 percent in the first six months ended June 30, to $10.6 million compared to $8.1 million a year ago.
The growth was reportedly driven by a substantial increase in rackets with the launch of its YMA pickleball racket brand as well as gains in technical services sales. These increases more than offset lower sales of bicycle frames and components, reflecting a deliberate focus on maintaining margins rather than pursuing volumes in the bikes business. J-Star also makes products for the automotive and healthcare sectors.
Gross profit was $2.8 million, or 26.9 percent gross margin, compared to gross profit of $2.4 million, or 30.2 percent gross margin, for 1H 2024. The decrease in gross margin was concentrated in rackets as the company reoriented business models to provide R&D/design/raw material supply services and acting as trading agent in preparation for exiting the China OEM business and expanding to the U.S.
Total operating expenses were $2.7 million, an increase of 47.6 percent compared to $1.8 million for 1H 2024. The increase was driven by higher administrative expenses, including non-recurring or -related expenses and costs associated with the launch of QO Bikes in Spain, as well as higher R&D expenses as the company focuses on preparing an automation factory setup in Houston, TX.
Operating income was $154,000, a decrease of 75.3 percent compared to operating income of $623,000 in 1H 2024. Non-operating expenses, including finance costs, interest income and foreign exchange gains, were $139,000 in 1H 2025 compared to $230,000 in 1H 2024.
Profit after income tax was $5,200, or less than 1 cent a share, compared to $479,000, or 3 cents, a year ago.
Sam Van, CEO of J-Star, said, “We are proud to have become a leading provider of innovative carbon fiber and composite solutions with products that have been endorsed by major brands and embraced by champions for over six decades. Our strong first half 2025 results are indicative of our ability to innovate toward high growth markets such as rackets, adapt to evolving market conditions in bikes, and execute with discipline. As a public company, we believe we are still in the early stages of a compelling growth journey.”
“Revenue of $10.6 million grew more than 30 percent in 1H 2025, including approximately 500 percent growth in both our rackets and technical services businesses. This performance reflects successful evolution of our business model toward becoming a solutions provider rather than a traditional OEM. Notably, we were able to more than offset the deliberate reduction in bicycle volumes to focus on maintaining margins, as well as a decline in crank revenue following the acquisition of our customer by a third party.”
“In the first half of 2025 we prepared for YMA’s launch of a line of in-house pickleball paddles as part of our direct-to-consumer strategy as we seek to capture our share of the world’s fastest growing sport, and we have since introduced the first two paddles – Horizon and Supernova. We also partnered up with cycling industry veterans to create a new premium carbon fiber components brand – QO Bikes. We are encouraged by the initial market response to both offerings. We are focusing on preparing the automation production line setup ahead of the planned facility in Texas over the coming months.”
“Looking ahead, we are focused on establishing our U.S.-based manufacturing capabilities, as part of our stated OEM strategy to develop capacity closer to our customers, particularly for the pickleball market. This strategy will enable us to improve inventory management, reduce transportation time, and lower our costs relative to competitors, as well as adding value to our customers through a ‘made in America’ approach.”
Nasdaq Non-compliance Notice
In a separate statement, J-Star said it received a letter of noncompliance from Nasdaq market for failing to meet the continued listing requirement that requires a stock maintain a minimum bid price of $1 per share for 30 consecutive business days. The company completed an initial public offering in July 2025.
J-Star said it has a compliance period of 180 calendar days in which to regain compliance and is currently evaluating options to support continued listing.
Image courtesy J-Star Holding Co., Ltd.
