J-Star Holding, a Carbon Parts Maker, Files for US IPO

The company positions itself as a top global supplier of carbon parts in the sporting goods industry.
Mar. 23, 2022 21:28
J-Star Holding, a Carbon Parts Maker, Files for US IPO

(CapitalWatch, March 23, New York) J-Star Holding Co. Ltd., a Taiwan-China carbon fiber parts manufacturer, seeks an initial public offering in New York as it pursues U.S. expansion.

J-Star is an offshore holding company with headquarters in Taiwan and a production plant in China's Dongguan. The company focuses on the development and manufacturing of carbon composite products, mainly for the sporting goods industry and the electric bicycle market.

Citing market research firm Frost & Sullivan, J-Star said it is one of the world's top suppliers of carbon fiber bicycle parts and carbon fiber racket parts. According to the prospectus, J-Star ships bicycle parts and tennis rackets mainly to branded customers in Switzerland, France, Italy, the Netherlands, Germany, and Japan. In addition, it supplies carbon auto parts and healthcare products to Australia, Canada, and Japan.

In 2020, J-Star generated $22.2 million in revenue, down 3% year-over-year, on income of $940,600. In the six months through June 2021, the company saw revenue growth of 27% to $12.2 million on net income of just under $1 million, the prospectus said.

The company's growth strategy includes the diversification of its product portfolio, construction of a new production plan in China's Yangzhou, and launch of its own brand on electric bicycle and sporting goods, with offices in the United States and the Netherlands.

In the U.S., the company said it is "exploring investment opportunities, including but not limited to possibilities on acquisition, joint-venture and /or co-branding production." J-Star also plans to set up an R&D center in Houston, Texas, for developing automation and advanced composite material and chemical technologies.

J-Star has applied to trade its shares on the Nasdaq Capital Market under the ticker "YMAT." ViewTrade Securities is underwriting the deal.