H1 2026
Filed Oct 23, 2026J-Star reported an unaudited IFRS loss for the six months ended June 30, 2026, as operating revenue and gross profit were lower than the prior-year period and administrative expenses increased.
Operating revenue was $ 6,767,591 versus $ 10,588,835, gross profit from operations was $ 961,984 versus $ 2,848,110, and loss after income tax was $ ( 1,567,791 ) versus profit after income tax of $ 5,237.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenue, six months ended June 30other | $ 6,767,591 | – | – |
| Cost of revenue, six months ended June 30other | $ ( 5,805,607 ) | – | – |
| Gross profit from operations, six months ended June 30other | $ 961,984 | – | – |
| Selling expenses, six months ended June 30other | $ ( 282,670 ) | – | – |
| Administrative expenses, six months ended June 30other | $ ( 2,536,548 ) | – | – |
| Research and development expenses, six months ended June 30other | $ ( 91,887 ) | – | – |
| Total operating expenses, six months ended June 30other | $ ( 2,911,105 ) | – | – |
| Net operating (loss) income, six months ended June 30other | $ ( 1,949,121 ) | – | – |
| Other gains (losses), net, six months ended June 30other | $ 272,926 | – | – |
| Finance costs, six months ended June 30other | $ ( 137,437 ) | – | – |
| Interest income, six months ended June 30other | $ 12,035 | – | – |
| Foreign exchange gains, six months ended June 30other | $ 33,519 | – | – |
| Non-operating income and expenses, net, six months ended June 30other | $ 181,043 | – | – |
| (Loss) profit before income tax, six months ended June 30other | $ ( 1,768,078 ) | – | – |
| Income tax credit (expense), six months ended June 30other | $ 200,287 | – | – |
| (Loss) profit after income tax, six months ended June 30other | $ ( 1,567,791 ) | – | – |
| Total comprehensive (loss) income, six months ended June 30other | $ ( 1,528,491 ) | – | – |
| Basic and diluted (loss) earnings per share, six months ended June 30other | $ ( 0.39 ) | – | – |
| Net cash flows used in operating activities, six months ended June 30other | $ ( 829,790 ) | – | – |
| Purchases of property, plant and equipment, six months ended June 30other | $ ( 3,413,023 ) | – | – |
| Net cash flows used in investing activities, six months ended June 30other | $ ( 3,462,130 ) | – | – |
| Net cash flows from financing activities, six months ended June 30other | $ 4,339,031 | – | – |
| Net increase in cash and cash equivalents, six months ended June 30other | $ 497,344 | – | – |
| Cash and cash equivalents, June 30other | $ 595,013 | – | – |
| Accounts receivable, net, June 30other | $ 5,429,705 | – | – |
| Inventories, net, June 30other | $ 1,014,245 | – | – |
| Property, plant and equipment, net, June 30other | $ 4,144,247 | – | – |
| Total assets, June 30other | $ 13,556,184 | – | – |
| Short-term loans, June 30other | $ 2,579,175 | – | – |
| Short-term loans from a related party, June 30other | - | – | – |
| Long-term loans due within one year, June 30other | $ 983,864 | – | – |
| Long-term loans, June 30other | $ 3,942,724 | – | – |
| Total liabilities, June 30other | $ 10,784,112 | – | – |
| Total equity (deficit), June 30other | $ 2,772,072 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Bicycle frame sales, six months ended June 30, 2026Sales of product reported in the revenue disaggregation table. | $ 528,621 | – | – |
| Racket sales, six months ended June 30, 2026Sales of product reported in the revenue disaggregation table. | $ 6,053,369 | – | – |
| Crank sales, six months ended June 30, 2026Sales of product reported in the revenue disaggregation table. | $ 12,906 | – | – |
| Other product sales, six months ended June 30, 2026Sales of product reported in the revenue disaggregation table. | $ 172,695 | – | – |
What drove it
- Racket sales were $ 6,053,369 for the six months ended June 30, 2026.
- Revenue recognized at a point in time was $ 6,767,591; revenue recognized over time was -.
- Other gains, net were $ 272,926, compared with other losses, net of $ ( 41,575 ) in the prior-year period.
- The Company entered into an exclusive global distribution agreement with Patriot Green Energy Technology for electric assist bicycle and electric motorcycle products, and recorded prepayment for business expansion of $ 423,960.
Concerns
- Operating revenue was $ 6,767,591 compared with $ 10,588,835 in the prior-year period.
- Gross profit from operations was $ 961,984 compared with $ 2,848,110 in the prior-year period.
- Administrative expenses were $ ( 2,536,548 ) compared with $ ( 1,620,373 ) in the prior-year period.
- Accounts receivable, net were $ 5,429,705, including $ 2,841,240 reported as over 180 days past due.
- Net cash flows used in investing activities were $ ( 3,462,130 ), including purchases of property, plant and equipment of $ ( 3,413,023 ).
- Total borrowings were $ 7,505,763 and cash and cash equivalents were $ 595,013 as of June 30, 2026.
What to watch
- Collection of accounts receivable, including the $ 2,841,240 reported as over 180 days past due.
- The effect of $ 3,413,023 of property, plant and equipment purchases on operations and cash flows.
- Execution of the exclusive global distribution agreement with Patriot Green Energy Technology.
- Use of the equity purchase agreement that allows the Company, but does not obligate it, to sell up to $ 35,000,000 of Class A Ordinary Shares over a 36-month commitment period.
- Progress under the Form F-3 shelf registration statement for a shelf offering up to $ 150,000,000 of Class A Ordinary Shares.
Balance sheet and cash flow
- Cash and cash equivalents were $ 595,013 as of June 30, 2026, compared with $ 97,669 as of December 31, 2025.
- Net cash flows used in operating activities were $ ( 829,790 ) for the six months ended June 30, 2026.
- Purchases of property, plant and equipment were $ ( 3,413,023 ) for the six months ended June 30, 2026.
- Net cash flows from financing activities were $ 4,339,031 for the six months ended June 30, 2026.
- Total borrowings were $ 7,505,763 as of June 30, 2026, compared with $ 12,642,862 as of December 31, 2025.
- The Company converted $ 8.2 million of an outstanding shareholder loan into Class A ordinary shares and transferred $ 1,743,411 from cancellation of a shareholder loan to capital surplus.
Analysis
J-Star reported operating revenue of $ 6,767,591 for the six months ended June 30, 2026, compared with $ 10,588,835 for the six months ended June 30, 2025. Gross profit from operations was $ 961,984, compared with $ 2,848,110. The company reports a single operating segment, while its revenue disaggregation showed racket sales of $ 6,053,369, bicycle-frame sales of $ 528,621, crank sales of $ 12,906, and other product sales of $ 172,695. All reported 2026 revenue was recognized at a point in time; the prior-year period included $ 1,780,000 of revenue recognized over time.
Operating costs exceeded gross profit. Total operating expenses were $ ( 2,911,105 ), compared with $ ( 2,694,531 ), with administrative expenses of $ ( 2,536,548 ) compared with $ ( 1,620,373 ). The result was net operating loss of $ ( 1,949,121 ), compared with net operating income of $ 153,579. Other gains, net of $ 272,926, partially offset the operating loss, while finance costs were $ ( 137,437 ). Loss after income tax was $ ( 1,567,791 ), compared with profit after income tax of $ 5,237, and basic and diluted loss per share was $ ( 0.39 ).
Cash generation remained negative. Net cash flows used in operating activities were $ ( 829,790 ), while investing cash outflows were $ ( 3,462,130 ), including $ ( 3,413,023 ) of property, plant and equipment purchases. Financing activities provided $ 4,339,031. Cash and cash equivalents ended at $ 595,013. Accounts receivable, net increased to $ 5,429,705 from $ 3,578,974 at December 31, 2025, and the receivables aging table reported $ 2,841,240 over 180 days past due.
The balance sheet changed materially through borrowing, fixed-asset investment, and shareholder transactions. Long-term loans, including the current portion, were $ 4,926,588, while short-term loans were $ 2,579,175. The $ 8.2 million shareholder loan outstanding at December 31, 2025 was converted into Class A ordinary shares, and the Company recorded cancellation of a shareholder loan of $ 1,743,411 in capital surplus. Total equity was $ 2,772,072 as of June 30, 2026, compared with total equity deficit of $ ( 6,777,635 ) as of December 31, 2025.
The filing provided no operating or financial guidance. Subsequent to period end, the Company filed a Form F-3 shelf registration statement for a shelf offering up to $ 150,000,000 of Class A Ordinary Shares and entered an equity purchase agreement granting it the right, but not the obligation, to sell up to $ 35,000,000 of Class A Ordinary Shares over a 36-month commitment period. The release also identifies a $ 423,960 prepayment for overseas market expansion linked to an exclusive global distribution agreement with Patriot Green Energy Technology.
Not in the filing
stated, not guessed- Forward revenue, margin, expense, tax-rate, earnings, cash-flow, or capital-expenditure guidance.
- Gross margin.
- Non-GAAP or adjusted financial measures.
- Free cash flow.
- Quarter-over-quarter comparisons.
- Reported percentage changes for total revenue, product lines, expenses, profit, cash flow, or balance-sheet line items.
- Capital-return amounts for dividends or share repurchases.
- Management earnings-release quotes from named executives.
- Separate reportable-segment revenue beyond the Company's statement that it operates as a single reporting segment.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.